Canada Biden again opens the sale of oil and gas concessions on the federal lands

13:35  17 april  2022
13:35  17 april  2022 Source:   latribune.fr

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Exploitation pétrolière près d'un champ de fraises dans la ville d'Oxnard, comté de Ventura, en Californie. © supplied by the Petroleum Tribune near a strawberry field in the city of Oxnard, County Ventura, California.

In the United States, the energy urgency relegates the climate emergency in the background to increase the supply of hydrocarbons. The US government, under pressure to lower gas prices, announced at the end of the week that it would resume the sale of concessions for the exploitation of hydrocarbons on federal land. However, it covers this authorization for new conditions, including a rise in tariffs, the first in more than 100 years.

Joe Biden, who has made the fight against climate change one of his priorities, had shortly after his arrival at the White House in January 2021 proclaimed a moratorium on the granting of new concessions for oil and gas drilling on the ground and the waters belonging to the government, waiting for a revision.

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The Ministry of the Interior has indicated in a statement on Friday that it would be bidding, from next week, about 173 plots representing 144,000 acres (58,275 hectares) in nine states after having operated several changes. The proposed surface is nevertheless 80% less than that which had been envisaged initially. Above all, the ministry will increase the charges requested, which had not moved for at least a century, from 12.5% ​​to 18.75% of profits.

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Interested companies will also have to comply with new conditions, such as a consultation of the Native American tribes or respect for " Best scientific methods available "for the analysis of greenhouse gas emissions in particular.

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This measure occurs at the time the US President faces record inflation, particularly the price of gasoline, which matches its popularity. In the month of March, half of the inflation is due to the only price of gasoline, which swore by 18.3% compared to February . Joe Biden has been taking initiatives for several weeks to lower crude classes, ordering for example at the end of March to tap massifice on the country's oil strategic reserves. 180 million barrels will be put on the market in the next 6 months.

The Joe Biden moratorium already started

the resumption of sales of concessions for the operation of oil and gas on federal land, however, should not have an immediate effect, the process generally taking several years. The moratorium proclaimed by Joe Biden had already been well started, a judge suspended him in June 2021 by considering that the administration had to obtain the approval of the Congress. The government had hired a few weeks later the auction of concessions at sea, in the Gulf of Mexico, canceled by justice in January. The Ministry of the Interior has also approved thousands of oil and gas licenses on federal land in 2021.

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