John: For the second time in the
last three weeks, the Biden
administration moved forward
with plans to drill for oil on
federally owned lands.
73 million acres, roughly the
size of Arizona.
Earlier, the administration
approved the controversial
willow project in Alaska, and $8
million oil drilling venture.
Ben Lafave covers the energy
industry for political.
Mr. Biden said in 2020, no more
drilling on federal lands, no
more drilling including
offshore, no ability for the oil
industry to continue to drill,
period.
What happened?
>> We always see candidates
running for office promising one
thing, most likely intending to
do that thing when they get in
but as soon as they step foot in
the oval office, reality steps
and and changes plans.
With this latest oil sale in the
gulf of Mexico, Biden had to
follow the law.
These sales are run twice a
year.
They got away with not having
any last year.
There time ran out legally and
they had to do it this time.
John: I read somewhere they need
the revenue for budget reasons?
>> Drilling for oil, anywhere on
public land, the government gets
a cut of the proceeds.
The rest goes to conservation
efforts.
It's a big chunk of change.
This last lease sale, Wednesday
resulted in $264 billion, the
highest amount the government's
gotten for one of these lease
sales since 2014.
John: What does this do for
environmentalists?
>> It's not made it easy.
Environmentalists were already
angry at the administration for
willow.
This time around, the Biden
administration did not put out a
press release.
It shows how sensitive they are
to being seen as facilitating
oil development.
They had to do this to keep the
legal promises to the oil
industry.
In willow, what the
administration tries to hew the
middle of the road and gets
hit by political cars.
Their relationship has gotten
better.
They were at each other's
throats.
Over the past two years,
especially with Russia's
invasion of Ukraine, helping to
scramble trade flows and
commodity markets, the industry,
the administration have been
talking more often.
I don't think they are in love
with each other.
There seems to be a grudging
respect and a thawing of
relationships.
John: Are there environmental
concerns?
Are there worries about the
willow project in Alaska?
And the gulf of Mexico?
>> There are for both.
Alaska, the north slope is in
the middle of nowhere.
The fear is if we have any big
catastrophe other, there's not a
lot of emergency management or
response nearby.
It's not like local fire
stations could rush out.
The gulf of Mexico, we saw the
deepwater horizon accident.
The gulf of Mexico is closer to
places that can get emergency
teams out.
It is still fairly far away.
If you have a big accident,
that's a major ecosystem in
danger.
John: What has the
administration done or is doing
to fulfill the promise of
weaning the U.S. Off fossil
fuels or trying?
>> After this latest
announcement about the gulf of
Mexico lease, they also
announced major conservation
efforts.
They would allow nonprofits to
lease federal lands to keep it
in a natural state.
Last year, we had the inflation
reduction act and the bipartisan
infrastructure law.
Those ceded a lot of money to
clean, renewable energy
innovations and infrastructure.
The administration will say we
have to do some fossil fuel
stuff to stay within the law and
make sure fuel prices don't rise
too high for the average family.
We are doing things, and the
next 5-10 years you will see a
major rebalancing of U.S. Energy
reply.
John: Ben Lafave, thank you.
>> Thank you.