Biden Administration Cancels Key Oil Lease Sales Despite Global Oil Shortage

Biden Administration Cancels Key Oil Lease Sales Despite Global Oil Shortage

Biden SHUTS DOWN Critical U.S. Oil Production

( – President Biden and his administration are seemingly still attacking the fossil fuel industry. At the same time, they claim to be attempting to help Americans at the pump amid record high fuel prices, a driving factor of the record inflation. The president recently announced his administration would be canceling what could be key oil leases. It doesn’t appear as though he is trying very hard to lower energy costs for American families.

Shutting Down Oil Leases

A report from The Washington Post indicated the US Department of the Interior (DoI) confirmed in a statement that the Biden administration had canceled three major oil leases in the Gulf of Mexico and Alaska. According to The Blaze, the DoI mentioned it wouldn’t continue with the Alaska deal, Cook Inlet OCS oil and gas lease sale 258, due to an apparent lack of interest in the area. That cancellation alone, as the report mentions, takes over 1 million acres of land off the market.

Axios reported the cancellation of two lease sales in the Gulf of Mexico, 259 and 261, due to court rulings impacting the work on the two plots and causing delays.

Why Shut Them Down?

The terminations come at an especially sensitive time when Americans are struggling with high fuel prices. The average price for a gallon of regular unleaded gasoline on May 13 was $4.432, and diesel was an astonishing $5.56/gal, according to the American Automobile Association.

So why did Biden do it? A report from CBS News mentioned that federal law dictates the DoI has to stay true to a five-year leasing plan when selling offshore leases. The department’s current five-year term is set to end on June 30, giving the DoI less than a month to finalize these sales. In the end, it was easier to cancel them and move on.

Uncertain Future

Frank Macchiarola, the Vice President of the American Petroleum Institute, told CBS News Biden has formed a pattern of talking about how the US needs to increase its oil supply but then doing the exact opposite. He urged Biden to act on a new five-year leasing program, mentioning how energy prices are on the rise around the globe.

Fox News noted the CEO of American Exploration & Production Council, Anne Bradbury, added that the process between finalizing a lease sale and actually beginning production of oil is a lengthy one. CBS News mentioned in its report that the Alaska deal alone would’ve likely produced oil for the next four decades. What will these cancellations do to future supplies?

~Here’s to Your Prosperity!

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