Block ip Trap

Federal Leasing Review Short on Answers for High Energy Prices

27 Nov 2021

Consumer Energy Alliance (CEA), the leading U.S. energy and environmental advocate for families and businesses, issued the following statement in response to the Department of Interior’s interim “Report on the Federal Oil and Gas Leasing Program”:

“We appreciate the deliberative process undertaken by the Department of Interior, but process should not turn into ways to further hamper energy production by creating regulatory uncertainty or costly policies which stifle investment with excessive regulations and policies that curtail sensible energy development,” CEA President David Holt said.

“This interim DOI review has taken all year, after the Administration paused federal leasing to conduct it. That action was one of many policy choices that have contributed to the fact that American families and small businesses are heading into a long, cold and expensive winter with higher gasoline and heating prices.”

 “Getting to net-zero without crushing the economy needs smart environmental and energy policies that recognize the role of oil and gas must play in meeting our basic energy needs for decades to come. Any other policy is fantasy, and the cost of that fantasy is enduringly higher energy prices for Americans.”

“Unfortunately, the report is short on details and makes references that appear to signal efforts to stop or hinder specific forms of energy production that have made America the world’s top oil and gas producer and leading environmental champion. Clarity, consistency, and regulations that preserve our world-leading environmental and safety record without chilling energy investments at home will help lower prices for American families and small businesses, deliver reliable energy in the cold of winter and ensure lasting environmental progress.”

“Federal law requires the Administration to initiate a 5-year planning process to lease and develop oil and gas resources in U.S. waters. Just getting that planning started would send powerful signals to the market and help lower the energy costs at a time when Americans are struggling with record inflation and excessive energy prices.”https://ssl.gstatic.com/ui/v1/icons/mail/images/cleardot.gif

“That is one tool President Biden can use that would have a real effect, unlike the recent Strategic Petroleum Reserve release. That only prompted OPEC+ and Russia to consider lowering production, whereas the U.S. returning to its role as the world’s largest oil and gas producer is entirely in our control and would counter foreign interference.”  

CEA is also concerned that this report could signal a regulatory slowdown for leases awarded in last week’s record Gulf of Mexico lease sale, Holt said.

“It is notable that amid all the references to GAO reports in the review, not once does it mention the most recent GAO report, which makes the case that the U.S. offshore leasing program is safer and more responsible than it has ever been.”

Consumer Energy Alliance | https://consumerenergyalliance.org