Today, the Energy Workforce and Technology Council released the following statement by CEO Leslie Beyer in response to the Biden Administration’s plan to restart limited lease sales on federal lands, while at the same time raising royalty fees paid by oil and gas producers, and on its decision to restore stricter reviews under NEPA.
“Recently, the Administration has been encouraging increased energy production while taking actions that are counter to its goals. While we welcome any lifting of the moratorium on lease sales on federal lands by the Administration, this action is a small step and won’t do anything to significantly increase American energy security or immediately reduce energy costs for the consumer. The Biden Administration is doing the least they can do to meet statutory and court obligations. Importantly, the proposal raises royalty rates 50% from 12.5% to the maximum allowed 18.75% and reduces the available acreage for leasing by 80% which disincentivizes production.”
“Additionally, the Administration has now made it more difficult and expensive for infrastructure projects that are greatly needed for increased LNG production, transporting and exporting. To fully meet the growing energy demand and increase the energy and national security of our country and our allies, the Administration needs to expand production opportunities, not diminish them, and they need to incentivize increased production, not raise fees, and further hamper the industry.”