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Biden administration to release federal oil leasing review soon

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© Reuters. FILE PHOTO: Deb Haaland, U.S. Interior Secretary, listens to questions during the hearing to request a budget for the Department of the Interior in 2022 at the Senate Committee on Energy and Natural Resources on Capitol Hill, Washington, U.S.A, July 27, 2017.

(Reuters). – U.S. According to two people familiar with the matter, the Interior Department will publish a long-awaited review of environmental impacts and economic benefits of the country’s federal oil & Gas leasing program on Friday.

The review was initiated by President Joe Biden’s Administration earlier in the year. It had been widely regarded as an initial step towards fulfilling a campaign promise of ending federal fossil fuel drilling in order to combat climate change.

The report, however, is not expected to recommend a cessation of oil and gas leasing – which would likely require an act of Congress – but rather pave the way for changes in the way the federal program is administered.

The U.S. Federal Oil and Gas Leasing Program requires that the Interior Department holds regular auctions on federal land to allow oil and natural gas drilling. This is an effort to increase domestic energy independence and to raise funds for government coffers.

One source said the report will discuss royalties and fees that drillers are required to pay for drilling on federal land, as well as non-competitive leasing – a controversial process where leases not sold at an auction can be sold directly to interested companies during the following two years.

About 25% of America’s oil and natural gas is sourced from federal leases. This program generates billions of dollars each year for both the federal budget and the state budgets.

Although it was intended that the lease report should be published by early summer, Interior Department repeatedly delayed this release without explaining why.

While the review was ongoing, the department attempted suspending new oil-and gas leasing auctions. However, it was forced back to normal after being sued by several states in federal court.

Deb Haaland, Interior Secretary of the United States has stated that she wants to decrease the country’s carbon footprint by encouraging the leasing of renewable energy sources like wind, solar, and geothermal instead of fossil fuels.

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