Biden administration is ‘sowing the seeds for the next energy crisis’ by blocking oil and gas leases despite wars in Mideast and Europe threatening energy flows, top US trade group warns

Entertainment


The Biden administration is ‘sowing the seeds for the next energy crisis’ by restricting America’s oil and gas sector even as wars in the Middle East and Europe threaten supply shocks, the head of a top trade group has warned.

Mike Sommers, president of the American Petroleum Institute (API), issued a stark warning that the White House was dragging its feet on allowing energy firms to drill on federal lands, threatening the economy and jobs.

The US oil and gas industry is booming, but the Biden administration is under pressure from climate activists to block oil and gas projects that scientists say raise global temperatures and cause more storms, floods, droughts, and wildfires.

‘Washington is on the cusp of spoiling the American energy advantage, undermining it with short-sighted policies and hostility toward US oil and natural gas,’ Sommers told the API’s annual meeting in Washington, DC, on Wednesday.

Mike Sommers, president of the American Petroleum Institute, says the Biden administration is dragging its feet over pending leases

The vital Red Sea shipping lane has been threatened by the spillover of the Gaza war. Pictured: Yemen's Houthi militants fly a helicopter over the Galaxy Leader cargo ship in the Red Sea

The vital Red Sea shipping lane has been threatened by the spillover of the Gaza war. Pictured: Yemen’s Houthi militants fly a helicopter over the Galaxy Leader cargo ship in the Red Sea

Speaking with Bloomberg, he later said the administration was ‘sowing the seeds for the next energy crisis.’

US oil production broke records last year, and it’s on track to surge to a new high of 13.21 million barrels per day this year, says a forecast from the government’s Energy Information Administration.

Still, Sommers warns, those were gains set in place by previous administrations that could be undone by the Biden administration’s restrictions on hydrocarbons and the transition to wind, solar and other renewables.

Oil production has risen to record highs of about 1.6 million barrels per day since President Joe Biden took office, the API says, but most of this came from private lands and leases granted to producers under previous administrations.

The group wants more energy schemes greenlighted and licenses to export liquefied natural gas globally.

They also want more rights on federal lands, including in the Gulf of Mexico, where Congress forced the White House to sell drilling rights last year.

That’s set to be the last auction of its kind until at least 2025, when there may be tighter limits and less available territory.

Sommers spoke of his ‘huge concern’ that three potential future Gulf lease sales could be scaled back or scrapped.

US oil production has risen to record highs of about 1.6 million barrels per day since President Joe Biden took office

The energy boss spoke as wars raged in Ukraine and Gaza, threatening global energy flows and making prices volatile.

Iran seized a tanker with Iraqi crude destined for Turkey on Thursday, the latest flare up of tensions in the Red Sea.

It follows weeks of attacks by Yemen’s Tehran-backed Houthi militias targeting one of the world’s most important shipping routes.

‘Our adversaries have shown time and time again their willingness to weaponize energy,’ Sommers said.

‘Our energy leadership is our security advantage,’ but ‘unrealistic timelines’ and government mandates toward 100 percent renewables and electric vehicles surrender that advantage to other countries.

President Joe Biden, a Democrat, touts his Inflation Reduction Act and America’s switch to renewables as a boost for workers, the economy and the planet, and part of his reelection campaign message.

But Republicans say the administration is switching over to renewables too quickly, threatening oil and gas jobs. The party’s likely nominee, former president Donald Trump, has vowed to ‘Drill, baby, drill’ if re-elected.



Source

Leave a Reply

Your email address will not be published. Required fields are marked *