Actionable insights straight to your inbox

logo_equities.svg

Fourteen States Sue Biden Administration Over Pause on New Oil and Gas Leases

The legal actions, which seek to restore regular federal drilling auctions, came a day before the administration is set to launch a review of the oil and gas leasing program.

Image source: Leonid Ikan / iStockphoto

(Reuters) – Fourteen U.S. states including Louisiana and Wyoming filed lawsuits on Wednesday against President Joe Biden’s administration, challenging his pause on new oil and gas leasing on federal lands and waters.

The legal actions, which seek to restore regular federal drilling auctions, came a day before the administration is set to launch a review of the oil and gas leasing program.

Biden, a Democrat, in January signed an executive order putting on hold new leasing pending that review. During his election campaign, he pledged to end new federal leasing as part of a sweeping plan to address climate change.

The pause has triggered heavy criticism from the oil industry and producing states that receive half of the revenues generated from federal lands drilling within their borders.

“We believe that the president’s actions are illegal and unlawful, and we’re going to hold him accountable for them to try to make sure that the gains that we’ve made over the years to help protect domestic oil and gas and energy continue,” Louisiana Attorney General Jeff Landry said in an interview.

A coalition of 13 states filed one lawsuit in federal court in Louisiana, while Wyoming filed its own lawsuit in federal court in that state.

The states joining Louisiana’s lawsuit included Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah and West Virginia. All have Republican attorneys general. Louisiana Governor John Bel Edwards is a Democrat.

The lawsuits allege the administration’s leasing pause violates the Mineral Leasing Act that requires quarterly lease sales.

In its lawsuit, Wyoming said the administration was also required to conduct an environmental review of the leasing suspension under the National Environmental Policy Act before taking action.

“The real consequences of the action are far from certain and far from uniformly environmentally friendly,” Wyoming said in its complaint.

White House Press Secretary Jen Psaki, responding to a question about the lawsuits, said the Trump administration had “flooded the oil markets with cheap federal leases. This will not affect oil and gas markets for years to come.”

The Department of Interior, which oversees the federal leasing program, declined to comment.

Reporting by Nichola Groom and Andrea Shalal; Editing by Will Dunham, John Stonestreet and Richard Chang.

_____

Source: Reuters

With pandemic-induced supply chain bottlenecks receding, semiconductor stocks have been riding a bullish trend, making higher lows and higher highs.
To say the current situation isn’t pretty now seems an understatement, and it’s likely to remain chaotic for a while. Which is why it’s so important for leaders of all kinds not to fall prey to the very human tendency to go negative.
Bargain-hunting friends of mine have been asking: “Should I buy First Republic?” After all, First Republic is prestigious. Facebook founder Mark Zuckerberg got a mortgage there. Dozens of customer surveys rate its satisfaction scores higher than super-brands like Apple and Ritz-Carlton.
Many of us economy-watchers have been expecting recession, though with significant differences on odds and timing. Regardless, recent banking developments just made recession more likely and may have accelerated its onset.