You are here: Home » International » News » Others
Business Standard

Trump administration set for its last auction of US oil drilling rights

Biden has said he would halt new oil and gas leases on federal lands and waters, but he has not laid out a method or timeline for realizing that goal

Topics
Trump administration | oilfield auction | United States

Reuters 

President Donald Trump speaks about early results from the 2020 US presidential election in the East Room of the White House in Washington. Photo: Reuters
Photo: Reuters

By Nichola Groom

(Reuters) - The on Thursday will offer the oil and gas industry a final chance to secure federal acreage before the inauguration of President-elect Joe Biden, who has pledged to ban new drilling on public lands.

The U.S. Bureau of Land Management will auction 37 parcels on 6,851 acres in New Mexico, Texas, Oklahoma and Kansas through the online auction site EnergyNet. Most of the parcels are in New Mexico overlaying parts of the sprawling Permian Basin, the world's biggest oil field.

The auction will reveal the level of demand for new leases from an industry facing an uncertain future for drilling on federal lands, weak prices and depressed demand for fuel due to the economic effects of the coronavirus pandemic.

Federal drilling auctions, a critical part of President Donald Trump's "energy dominance" agenda to maximize domestic production of fossil fuels, have garnered increasingly weak interest this year due to the health crisis and the prospects of a new U.S. president keen to fight climate change.

Biden has said he would halt new oil and gas leases on federal lands and waters, but he has not laid out a method or timeline for realizing that goal.

A study https://www.reuters.com/article/us-usa-drilling-study/ban-on-federal-drilling-leases-would-cost-eight-u-s-states-billions-study-finds-idUSKBN28P338 by the state of Wyoming last month found that such a ban would cost eight Western states $8.1 billion tax revenue and $34.1 billion in investment in the next five years.

But auctions in Wyoming, Utah and other states last month attracted sparse bidding, and major oil companies failed to show https://www.reuters.com/article/us-usa-alaska-oil/oil-drillers-shrug-off-trumps-u-s-arctic-wildlife-refuge-auction-idUSKBN29B0KR up entirely for last week's first ever sale of drilling leases in the Arctic National Wildlife Refuge.

Environmental, community and taxpayer groups have criticized the administration for holding oil and gas lease sales at a time of low prices, saying they are not generating adequate returns.

"This lease sale is being conducted under an antiquated system, which prioritizes the bottom line of oil and gas companies instead of New Mexico taxpayers," James Jimenez, director of the non-profit New Mexico Voices for Children, said in a statement.

BLM officials did not immediately respond to a request for comment.

 

(Reporting by Nichola Groom; Editing by David Gregorio)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, January 14 2021. 22:38 IST
RECOMMENDED FOR YOU
.