The Biden administration has stopped three sales of offshore exploration land, even as Americans fight rising fuel prices.
President Joe Biden’s administration has canceled three offshore oil and natural-gas lease sales, including one in Alaska, reducing the likelihood of new sources of supply and even helping record gas prices keep U.S. inflation at a 40-year high.
The U.S. Department of the Interior (DOI) announced the decision Wednesday, halting lease sales at Cook Inlet in the Gulf of Mexico and Alaska. Blamed the department “Court’s conflicting verdict” To complicate his work at the Gulf of Mexico auction and “Lack of interest in the industry” Alaska offers to torpedo.
The sale was canceled despite DOI being asked to complete its five-year lease plan, including the Gulf of Mexico and Cook Inlet auction, by the end of next month. The decision comes as sanctions against Russia over the Ukraine crisis have accelerated the rise in fuel prices.
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US petrol prices hit new all-time highs for three consecutive days this week, reaching an average of $ 4.42 per gallon on Thursday for the cheapest grade. Diesel is around $ 5.56 per gallon, which is also a record.
“Biden’s decision to cancel the sale of Alaska oil and gas leases makes no sense in this energy-constrained environment.” Said Dan Eberhart, CEO of drilling-services contractor Canary LLC. “America’s supply is low, and consumers are paying the price at the pump.”
Biden’s decision to cancel the sale of Alaska oil and gas leases makes no sense in this energy-constrained environment. America’s supply is low and consumers are paying the price at the pump. The bill will come to Democrats in November. via https://t.co/8Wh4cD5Xvt CBSPolitics
– Dan K. Eberheart (DankeberHeart) May 12, 2022
Biden has blamed Russian President Vladimir Putin, US oil companies and Republicans for fuel prices. However, critics noted that President Keystone has revoked permission to expand the XL pipeline, which carries more than 800,000 barrels of Canadian crude oil per day to U.S. Gulf Coast refineries, and his administration has failed to create the possibility of new explorations. Federal land available.
“This is the 477th day of the Biden administration. We have a record price of gas and they have not yet leased one acre of land for oil drilling.” Representative Dan Cranshaw (R-Texas) Thursday. Minority leader in the Senate Mitch McConnell (R-Kentucky) noted that U.S. gasoline prices have risen by more than $ 2 per gallon since Biden took office in January 2021.
“The president has spoken of the need for oversupply in the market, but his administration has failed to take steps to match that rhetoric.” Executive of the American Petroleum Institute Frank McChirola Says “The kind of price environment we are seeing has the negative consequences of halting oil and gas development politically and practically.”
Alaska sales alone will provide the potential to explore more than 1 million acres, with production potential for four or more decades.