The Biden administration's actions, including halting the Keystone Pipeline and implementing new leasing regulations, have significantly impacted the U.S. oil and gas industry, raising concerns about national energy security and economic stability.
In a recent report released by the Institute for Energy Research (IER), the Biden administration has taken "more than 200 actions" that have been detrimental for the U.S. oil and gas industry. The report, published in March, outlines a series of policy moves and executive decisions made by President Joe Biden since his first day in office on January 20, 2021, which the IER claims are designed to make energy production in America more difficult and costly.
The IER's analysis catalogs President Biden's actions in chronological order, starting with the revocation of the Keystone Pipeline permit, halting oil and gas leasing in the Arctic National Wildlife Refuge, and overturning President Donald Trump’s executive orders aimed at reducing regulations to boost domestic production.
These initial actions were followed by cancellations of new oil and gas leases on public lands and offshore waters and the introduction of new regulations for permitting and leasing practices. Despite these measures, some oil and natural gas lease sales have been upheld by federal courts, including a decision last month and another by the Fifth Circuit in December allowing Gulf lease sales to proceed.
Amid rising oil prices, President Biden and the administration criticized the oil and gas industry before the 2022 midterm elections, accusing them of profiteering, and suggested the possibility of implementing a “windfall profits tax.” The president attributed the high oil and gasoline prices to the Russian invasion of Ukraine, stating, “Their profits are a windfall of war,” and implied that domestic oil production could be increased by reversing the policies enacted at the start of his term.
The Biden administration has also proposed $110 billion in tax hikes on the fossil fuel industry. This prompted a group of 24 U.S. senators, led by Sen. John Barrasso (R-Wyo.), to express their "grave concern" over what they perceive as continued hostility towards American energy production. They argue that these actions could compromise affordable and reliable energy access for American families and benefit global adversaries in energy markets.
Controversial actions continued with the administration's decision not to replenish the Strategic Petroleum Reserve (SPR), which has seen its reserves halved since President Biden took office. Western Energy Alliance President Kathleen Sgamma criticized the timing of this strategy, suggesting it was influenced by political reasons rather than prudent energy policy.
In a contrasting move, U.S. House Republicans and some Texas Democrats passed bills to bolster the domestic oil and gas industry. Ed Longanecker, President of the Texas Independent Producers & Royalty Owners Association (TIPRO), labeled the depletion of the SPR as a politically motivated decision that endangers national security.
Texas remains a leader in oil and gas production, setting records in 2023 with 1.99 billion barrels of oil and 12.2 trillion cubic feet of gas produced, largely on private land. The state's energy sector has provided significant support to European countries following Russia's invasion of Ukraine, with LNG exports serving as a crucial energy lifeline.
Todd Staples, President of the Texas Oil & Gas Association, emphasized the importance of Texas as a stable energy trading partner, despite federal policies that he believes are designed to inhibit growth. He warns that the industry's success should not be taken for granted in the face of these policies, which can impact American consumers and the country's ability to offer energy security worldwide.
