Oil prices dropped about 13% Friday as a new coronavirus variant first detected in South Africa appeared to be spreading across the globe. Gasoline prices are at about $3.40 a gallon, more than 50% higher than a year ago, according to the American Automobile Association. The federal leasing program has drawn renewed focus in recent weeks as gasoline prices have skyrocketed and Republicans complained that Biden policies, including the leasing moratorium, rejection of the Keystone XL oil pipeline and a ban on oil leasing in Alaska’s Arctic National Wildlife Refuge, contributed to the price spike.īiden on Tuesday ordered a record 50 million barrels of oil released from America’s strategic reserve, aiming to bring down gas prices amid concerns about inflation. The White House declined to comment today, referring questions to Interior. The Bureau of Land Management, an Interior Department agency, should focus leasing offers on areas that have moderate to high potential for oil and gas resources and are close to existing oil and gas infrastructure, the report said. Bond rates have not been increased in decades, the report said. The report also said the government should consider raising bond payments that energy companies must set aside for future cleanup before they drill new wells. The federal rate of 12.5% that developers must pay to drill on public lands is significantly lower than many states and private landowners charge for drilling leases on state or private lands.
The report recommends hiking federal royalty rates for oil and gas drilling, which have not been raised for 100 years. The new report seeks a middle ground that would continue the multibillion-dollar leasing program while reforming it to end what many officials consider overly favorable terms for the industry. The moratorium drew sharp criticism from congressional Republicans and the oil industry, even as many environmentalists and Democrats said Biden should make the leasing pause permanent. The report completes a review ordered in January by President Joe Biden, who directed a pause in federal oil and gas lease sales in his first days in office, citing worries about climate change. “Our nation faces a profound climate crisis that is impacting every American,″ Interior Secretary Deb Haaland said in a statement, adding that the new report’s recommendations will mitigate worsening climate change impacts “while staying steadfast in the pursuit of environmental justice.″ But officials said the report would lead to a more responsible leasing process that provides a better return to U.S. The long-awaited report by the Interior Department stops short of recommending an end to oil and gas leasing on public lands, as many environmental groups have urged. WASHINGTON > The Biden administration today recommended an overhaul of the nation’s oil and gas leasing program to limit areas available for energy development and raise costs for oil and gas companies to drill on public land and water.
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