Biden’s Restrictions on Federal Lands Causing Inflation and Energy Cost Surge, Says Energy Leader
The Biden administration’s actions to limit oil and gas production on federal lands are wreaking havoc on the U.S. economy, leading to rising inflation and higher energy costs. According to Harold Hamm, a prominent figure in the American energy sector, these restrictions are hindering the country’s growth and potential.
In a recent appearance on “Kudlow,” Harold Hamm, the chairman and founder of Continental Resources, expressed his concerns about the impact of the moratorium on federal lands. He urged the federal government to expedite the permitting process and lift the moratorium to foster further development. With approximately 26% of the U.S. landmass and 35% of productive capacity off the table due to the Biden administration’s executive orders, the energy industry has been dealt a significant blow.
The consequences of these restrictions have not been negligible. Hamm pointed out that inflation has surged as a result, leading to increased costs for consumers. He stressed that these higher costs are not transient but rather “very resilient,” implying that they are here to stay, burdening consumers for the foreseeable future.
President Biden’s executive orders imposed a moratorium on issuing new oil and gas leases on federal lands and offshore waters. However, this policy faced opposition in court, leading to a revised program that allowed new leases to be issued with higher royalty payments to the government.
Additionally, operations on existing leases were suspended, and a moratorium on new leases in the Arctic National Wildlife Refuge (ANWR) was put in place, pending an environmental review. The draft of the review is expected to be released later this year, adding further uncertainty to the industry’s future.
H2: Hamm’s Call for Profitability and Investment
Larry Kudlow, the host of the show, questioned Harold Hamm about the price of oil necessary to ensure energy producers can turn a profit and stimulate investment in the sector. Hamm’s response was straightforward; he suggested that oil should cost around $80 per barrel. He argued that this price point is essential to maintain current levels of investment in oil and gas production.
As of Wednesday, oil prices were hovering around $80 a barrel for both U.S. crude futures and Brent crude futures. This reflects the ongoing impact of the restrictions on federal lands and the global demand for energy resources.
The Energy Information Administration reported a significant drop in U.S. crude oil inventories, with a reduction of 17 million barrels. This marked the largest decrease in inventories since records dating back to 1982. The drop was attributed to increased refinery runs and strong crude oil exports, indicating that despite the challenges posed by the restrictions, the industry is still finding ways to thrive.
In conclusion, the Biden administration’s efforts to limit oil and gas production on federal lands are causing significant repercussions for the U.S. economy. The surge in inflation and higher energy costs are affecting consumers and businesses alike. As the debate over energy policies continues, the future of the American energy renaissance remains uncertain. Nevertheless, industry leaders like Harold Hamm are pushing for more favorable conditions to maintain profitability and ensure continued investment in the sector. As the year progresses, the energy industry will be closely watching for any developments that could shape its path forward.
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