October 6, 2022

Surprise: Deflation law makes oil and gas development on federal lands less attractive

Surprise: Deflation law makes oil and gas development on federal lands less attractive

by Romania Web
|August 17, 2022

Below is an excerpt from A blog post by the Columbia School of Climate Sabin Center for Climate Change Law.

Oil or gas well in pastures in Texas

Picture: USDA NRCS Texas

President Biden outlined this during a signing ceremony on Tuesday Inflation Law (IRA) as “one of the most important pieces of legislation in our history.” Political rhetoric aside, its approval is a great achievement. After decades of inaction on climate change, the US Congress has finally taken a step forward. The IRA allocates billions of dollars to support the development of renewable energy, electric vehicles and other clean technologies that reduce greenhouse gas emissions. But, like much of what happens in Congress, the IRA is a compromise.

Many have complained that the IRA contains provisions that favor the fossil fuel industry. Of particular concern is the section that prevents the Interior Department from leasing federal land for wind and solar energy projects, unless it has proposed a certain amount of land to lease for oil and gas development. Tying land leases for renewable energy projects to fossil fuel development in this way is problematic for many reasons. But its real-world impact may be more limited than many fear.

The IRA only stipulates the issuance of leases for renewable energy projects in the country Presentation Land for oil and gas development There is no requirement to sell oil and gas leases. In recent years, industry interest in developing oil and gas resources on federal lands has waned, leading to fewer lease sales. This trend is likely to continue in the coming years as a result of other changes to the federal land lease program set by the IRA as well as various market forces.

The IRA is asking the Bureau of Land Management to make major changes to its oil and gas leasing program — changes that would likely halt oil and gas development on federal lands.

Read the changes on the Sabin Center blog.

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