As oil prices continue to rocket, now further helped along by Russia's invasion of Ukraine, the Biden administration is still fighting tooth and nail to freeze new oil and gas drilling leases - even after a court ruled against the administration for using a metric to estimate "The societal cost of carbon emissions" to justify their move.
Despite the court's ruling, Biden's administration has stopped new leases and permits for federal oil and gas drilling, MSN reported this week.
The administration was previously prevented from using the "Social cost of carbon" metric in decisions regarding oil and gas thanks to an injunction issued by US District Judge James Cain of the Western District of Louisiana.
This, in turn, allowed the Biden administration to freeze oil and gas projects.
Interior Department spokesperson Melissa Schwartz added: "The Interior Department has assessed program components that incorporate the interim guidance on social cost of carbon analysis from the Interagency Working Group, and delays are expected in permitting and leasing for the oil and gas programs."
Schwartz says the Interior Department "Continues to move forward with reforms to address the significant shortcomings in the nation's onshore and offshore oil and gas programs," the report noted.
We noted earlier this week that JP Morgan has suggested oil could average at about $110/barrel for the remainder of the year - but this prediction was also before the current geopolitical conflict in Europe escalated.
Friday, February 25, 2022
Biden Admin Freezes New Oil And Gas Drilling Leases Despite Recent Court-Ordered Injunction
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