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US Government to Resume Leasing for Oil & Gas

The Biden government announced to resume selling leases of drill for oil and gas on federal lands starting next week

US Government to Resume Leasing for Oil & Gas on Federal Land

As per the announcement of The Department of Interior on Friday, the sale of gas and oil leases will be resuming next week. The Bureau of Land Management will issue the final environment examination and sale notices from Monday for upcoming gas and oil projects. BLM stated that the lease would comprise roughly 173 parcels for 144,000 acres, accounting for 80 percent less than the original acreage.

Biden administration took this step to counter increasing gasoline prices and inflation; both can be dangerous for the current political environment. Since the day when Biden took charge as President, he discouraged such leases and emphasized ending them.

On the other hand, the administration held the narrative that it was looking for opportunities to reopen the drilling responsibly. A statement from Interior Secretary Deb Haaland highlighted the importance of public lands and waters, and managing both of them indicates everything that they value as a nation.

Concerns of the American Petroleum Institute

The State Department further added that the Bureau of Land Management evaluated likely available and appropriate acreage in the states of New Mexico, Wyoming, Nevada, Colorado, Oklahoma, Alabama, Montana, Utah, and North Dakota. In addition, during his first week in office, the U.S. president signed an executive order to suspend temporarily new oil & gas leases on offshore waters and public lands for fracking and drilling.

Regarding the decision, the American Petroleum Institute (API) expressed concern to Fox News over whether the move will add new barricades to increase energy production. Furthermore, the Interior Department said Friday that the recent leasing would come with an 18.75% royalty rate, more than the last rate of 12.5 that critics complained was far less than what energy firms pay to drill on most state lands.

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