The Institute for Energy Research (IER) recently responded to the U.S. Department of the Interior's report that recommended "significant reforms" be made to federal oil and gas leasing practices.
The IER called some of the suggested changes problematic.
In a report released in November, the Interior Department mentioned several areas of concern, including fairness to taxpayers, discouraging speculation, making operators responsible for remediation, and including communities and local governments in the decision-making process.
“Our nation faces a profound climate crisis that is impacting every American,” said Interior Secretary Deb Haaland, in the release. “The Interior Department has an obligation to responsibly manage our public lands and waters – providing a fair return to the taxpayer and mitigating worsening climate impacts – while staying steadfast in the pursuit of environmental justice. This review outlines significant deficiencies in the federal oil and gas programs and identifies important and urgent fiscal and programmatic reforms that will benefit the American people.”
The IER claims the suggestion of charging companies more to drill in the United States would result in higher prices for consumers due to less domestic product and increased reliance on OPEC. Given that 60% of electricity in the United States is generated using fossil fuels, the organization argues this could leave a significant impact.
Another concern is the bill "restricts access to resources owned by Americans and advances (President Joe) Biden’s priorities including an ‘import-more-oil’ strategy," IER stated in its response. The organization also stressed that only 4% of onshore federal lands are leased for oil and gas development.
A previous IER study found federal tax revenue could increase by $24 billion over seven years and $126 billion annually afterward if federal lands and waters were opened up for production.
The IER claims the Interior Department's report encourages the policies of the Biden administration and will harm the American people with higher gas prices and subjecting them further to OPEC's whims.