Judy: The Biden administration
is forging ahead with its plan
to sell new leases for oil and
gas drilling on federal land.
The move comes as president
Biden seeks new ways to lower
gas prices.
But some environmental groups
say he is breaking his campaign
promise to end the nation's
dependence on fossil fuels.
Stephanie Tsai has this report.
>> These are the first fossil
fuel leases to be offered on
public lands since Biden took
office.
They cover 145,000 acres of
government land across nine
states and the interior
department will raise the rate
oil and gas companies pay the
federal government from 12.5% to
18.75%.
Joining us to discuss the
implications, coral Davenport,
who covers energy for the new
York Times.
Thank you for joining the
newsho.
In the grand scheme of
nationwide oil and gas
extraction, how much is 145,000
acres, could increase oil and
gas production and could it
shift the U.S. Away from its
goals to lower carbon emissions?
>> In the grand sing with --
grand scheme of things, 144,000
acres is a small portion of the
many hundreds and hundreds of
thousands of acres that the U.S.
Already has opened for drilling
on public lands.
It is a very small portion.
It's not expected to make a
difference in overall U.S.
Gasoline production or the price
of gasoline.
That said, one thing scientists
are telling us right now about
carbon emissions is that with
the amount of carbon emissions
now in the atmosphere and the
rate of global warming we are
experiencing, global economies
really need to put the brakes
right now on any new oil, gas
and coal production if we want
to avoid the most severe impacts
of climate catastrophe.
>> We know that Joe Biden
promised not to lease federal
lands out for oil and gas
drilling, when he was on the
campaign trail in 2020.
How is his administration
justifying what appears to be
policy reversal, especially for
those who voted for him based on
his climate change promises?
>> That was one of the
presidents, candidate Biden's
signature promises -- he said
especially, if I'm elected,
there will be no new drilling.
No new public leasing and
drilling or leasing on public
lands.
He said that very clearly in
public forums.
Soon after Biden came into
office, he announced publicly
that there would be a pause on
all new oil and gas leasing on
public lands.
Soon after that a federal judge
put a halt to that, called an
injunction and said --
that pause was N ot legal.
What the administration is
saying is, look, we are
compelled to comply with this
federal injunction.
This is not in keeping with what
we want to do, but we have to go
ahead and hold these leases
because we have been told to do
so by this federal court.
On the other hand, activists are
saying, look, there are plenty
of ways the administration can
make a case, could use the
environmental impacts of this
leasing to go to court and say,
no, this really is not in
keeping with what we need to do.
Eczema are furious.
They are saying this is a
violation of that promise.
-- Activists are furious.
Any ministry should does not
need to go ahead with these
leases despite the legal
injunction.
>> You said this is not likely
to have any impact on people,
especially working-class people
and people with lower incomes
that are facing extremy
high gas prices.
As gas prices spike Biden
pointed the finger at the
industry for sitting on
thousands of already approved
leases.
Now he's opening up more leases
and expecting the industry to
pay more to the federal
government to do that.
I wonder how is the industry
responding.
>> The industry is unhappy with
this.
The increase in rates the
industry would have to pay in
keeping with this decision, is
huge.
Right now industry pays 12.5% on
their revenues for drilling on
public lands.
In opening up these leases, the
administration is raising that
to 18.75%.
That could easily amounts to
tens of billions more dollars in
revenue.
The industry is furious but that
is the first increase in those
royalty rates that the oil
industry has had to face in over
a century.
They are very unhappy about it.
But a lot of tax payer advocacy
groups say, look, the oil
industry has really been getting
a really easy ride.
They have been paying these
royalty rates that were set in
place over 100 years ago.
They have not had an increase in
what they had to pay since the
1920's.
This increase in what they have
to pay is overdue.
The companies are quite unhappy.
>> So many players in this
policy change.
Coral Davenport covers energy
and environmental policy for the
New York Times.
Thank you for joining the
newshour.
>> Thank you.