In an interview with Fox News, a prominent oil and gas executive said that he believed the Biden administration's energy policies would prolong and amplify the existing crisis.
The government will resume oil and gas leases on federal land in a bid to bring down petrol prices, according to Joe Biden. They have hit a record high of 70% since Biden took office, with gasoline at $4.07 as of Friday.
Tim Stewart, president of the US Oil and Gas Association, told Fox News that the new policy will compound the problem. There is a short-term production shortfall. The Secretary's actions will push this problem out for three, five, seven, and 10 years.
Secretary Deb Haaland said in a statement that how we manage our public lands and waters says a lot about what we value as a nation. For too long, the federal oil and gas leasing programs have prioritized the needs of the oil and gas industry over the needs of the people who live in the area.
Today, we begin to reset how and what we consider to be the highest and best use of Americans resources for the benefit of all current and future generations.
Stewart said that the secretary of interior is very much on message with the rest of the Biden administration.
Stewart said that she was clear that she was going to make oil and gas operators pay more in royalties and other fees if they were interested in doing work on federal lands.
He said that they would only have access to 20% of the current area, and that they would forward the potential oil and gas opportunities to the secretary.
Stewart said that the new policy wouldn't increase production.
Biden released one million barrels of oil a day from the government's strategic stockpiles for six months. The president was under intense political pressure over the fuel prices.
The US government has used the strategic reserve before to lower gas prices. The administration decided to release 50 million barrels in November due to supply-chain issues.
On March 1, Biden unleashed another 30 million barrels of crude to counter price pressures.
Frank Macchiarola, senior vice-president at the American Petroleum Institute, the oil industry's largest lobbying group, told the FT that the new policy would discourage oil and natural gas investment on federal lands.
Macchiarola is concerned that this action adds new barriers to increasing energy production, including removing some of the most significant parcels.
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