The Biden administration is set to announce on Wednesday a temporary halt of new oil and gas leasing on federal lands and waters, Reuters reported, citing sources familiar with the matter. This will follow a 60-day suspension of routine drilling approvals issued last week. Biden will also give an order to conserve nearly a third of federally run acreage over the next decade. This move will be part of Biden’s broader new climate orders.
The new orders will affect large portions of offshore acreage, mostly in the US Gulf of Mexico, and onshore acreage in mainly western states. Meanwhile, Tribal lands are not included. The sources noted that the new order would impact leasing activities, not permitting. This suggests that the government could continue issuing permits for drillers who secure leases in auctions during the Trump administration.
While the orders receive support from activists, it is expected to hurt the revenue of major drilling states such as Colorado, Louisiana, and New Mexico. These three states have a heavy dependence on revenues from the federal minerals leasing program. For instance, Democrat-run New Mexico earned more than $2.5 billion from drilling taxes in the last three years.
The sources added that Biden would direct about 40% of clean energy investments in low-income neighborhoods. The White House will also have a climate change task force, while the Health and Human Services department will set up a climate change office.
