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Big news: President Biden issues 60 day moratorium on new permits to drill. https://www.doi.gov/sites/doi.gov/files/elips/documents/so-3395-signed.pdf
If permanent, this would ban drilling on federal land because you need a permit to drill—even if you already have paid for your lease. Bigger companies can keep drilling for now because they have stockpiled permits. @Jennifer_Hiller & @nicholagroom: https://www.reuters.com/article/us-usa-biden-drilling-idUSKBN29Q1S5
Chart: A ban on new leases only slowly reduces production on federal land. (Dark blue line.) But a drilling ban quickly reduces production on federal land. (Green line.)
Chart is for Gulf of Mexico–drilling ban reduces production even faster onshore.
HT @RobertClarke_WM
Chart is for Gulf of Mexico–drilling ban reduces production even faster onshore.
HT @RobertClarke_WM
As I explained during the primary, this fulfills President Biden's promise to ban “new oil and gas permitting on public land and water” on day one. If you take it literally, that promise would also ban all new pipelines. https://www.energylawprof.com/?p=1313
During the general election, many argued President Biden really only meant that he would ban "new oil & gas *leasing* on public lands and waters"–a significant, but much narrower step. They pointed to this campaign document that only mentioned leasing: https://joebiden.com/9-key-elements-of-joe-bidens-plan-for-a-clean-energy-revolution/
Now it looks like President Biden may have meant what he literally said. This would be very bad news for oil & gas producers in the Gulf of Mexico and states with a lot of federal land such as New Mexico, North Dakota, and Wyoming.
If so, that could also be very bad news for pipeline construction & replacement. Every big pipeline project crosses watercourses that are "federal waters." Although those have been built under general permits in the past, President Biden could change that and stop them.
There is still a lot of uncertainty. This is just 60 days and some big companies have years of drilling permits stock-piled. But the order is a very important early sign of how the Biden administration will address oil, gas, & pipelines on federal lands.
