Trump administration set for its last auction of U.S. oil drilling rights

By Nichola Groom (Reuters) - The Trump administration on Thursday will offer the oil and gas industry a final chance to secure federal acreage before the inauguration of President-elect Joe Biden, who has pledged to ban new drilling on public lands. The U.S

Reuters January 15, 2021 00:07:39 IST
Trump administration set for its last auction of U.S. oil drilling rights

Trump administration set for its last auction of US oil drilling rights

By Nichola Groom

(Reuters) - The Trump administration on Thursday will offer the oil and gas industry a final chance to secure federal acreage before the inauguration of President-elect Joe Biden, who has pledged to ban new drilling on public lands.

The U.S. Bureau of Land Management will auction 37 parcels on 6,851 acres in New Mexico, Texas, Oklahoma and Kansas through the online auction site EnergyNet. Most of the parcels are in New Mexico, overlaying parts of the sprawling Permian Basin, the world's biggest oil field.

The auction will reveal the level of demand for new leases from an industry facing an uncertain future for drilling on federal lands, weak prices and depressed demand for fuel due to the economic effects of the coronavirus pandemic.

Federal drilling auctions, a critical part of President Donald Trump's "energy dominance" agenda to maximize domestic production of fossil fuels, have garnered increasingly weak interest this year due to the health crisis and the prospects of a new U.S. president keen to fight climate change.

Biden has said he would halt new oil and gas leases on federal lands and waters, but he has not laid out a method or timeline for realizing that goal.

A study https://www.reuters.com/article/us-usa-drilling-study/ban-on-federal-drilling-leases-would-cost-eight-u-s-states-billions-study-finds-idUSKBN28P338 by the state of Wyoming last month found that such a ban would cost eight Western states $8.1 billion in tax revenue and $34.1 billion in investment in the next five years.

Auctions in Wyoming, Utah and other states last month attracted sparse bidding, and major oil companies failed to show https://www.reuters.com/article/us-usa-alaska-oil/oil-drillers-shrug-off-trumps-u-s-arctic-wildlife-refuge-auction-idUSKBN29B0KR up entirely for last week's first-ever sale of drilling leases in the Arctic National Wildlife Refuge.

Environmental, community and taxpayer groups have criticized the administration for holding oil and gas lease sales at a time of low prices, saying they are not generating adequate returns.

"This lease sale is being conducted under an antiquated system, which prioritizes the bottom line of oil and gas companies instead of New Mexico taxpayers," James Jimenez, director of the non-profit New Mexico Voices for Children, said in a statement.

BLM spokesman Richard Packer said in a statement that the agency was required by law to hold quarterly lease sales and was "balancing safe and responsible natural resource development with conservation of important surface resources."

(Reporting by Nichola Groom; Editing by David Gregorio and Dan Grebler)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.