Over the past week, President Biden has been busy issuing a slew of Executive Orders, many of which will harm American workers and businesses, and make it harder for our economy to recover from the recession. In addition to cancelling the Keystone Pipeline - a move that directly kills thousands of good-paying jobs - the president has also suspended new mining, oil and gas permits on federal lands. Not only will many workers be impacted by these moves, but they also threaten America’s energy renaissance and could potentially raise prices on energy users. It is disappointing that despite campaigning to “Build Back Better,” President Biden is issuing job-killing Executive Orders.
As part of his agenda to tackle climate change, President Biden on Wednesday signed an order to "pause" new oil and gas leasing on public land and offshore water and to also review existing leasing and permitting practices. This latest order is completely shortsighted and misguided. At best, this decision is a one-off, issued only to appease the radical wing of the Demoratic Party. At Worst, it is just the first step towards enacting the Green New Deal along with the abolition of non-renewable energy sources.
The president’s decision could have significant economic and fiscal consequences. While it is unclear just how much revenue the federal government will forgo in royalties and fees from future leases, the Congressional Budget Office estimated that from 2014 to 2023 the federal government would receive $127 billion in proceeds from oil and gas leases on federal land. These proceeds are scored in the budget as offsetting receipts, or negative spending. Banning extraction would reduce offsetting receipts as existing leases expire. Additionally, this Order puts a roadblock on job creation since businesses will not be able to hire employees to work these lands. In fact, according to a recent study, a ban on federal leasing on natural gas and oil development on public lands and waters could cost 1 million jobs and reduce our GDP by $700 billion.
Instead of using the power of the federal government to pick and choose which types of energy are allowed, the president should employ an “all of the above” strategy. Letting the market choose which types of energy should be used is the most fair and effective way to lower prices and protect jobs.
Thankfully, the president's harmful and misguided energy decision has not gone unnoticed on Capitol Hill. This week, a group of twenty House members, led by Minority Leader Kevin McCarthy (R-CA), wrote a letter to the White House expressing their opposition to such a moratorium. In their letter, they note: “Such an action by your Administration would be as extreme as it is radical, and it would only further divide the country. It would put Americans with good-paying jobs in the energy industry out of work.” In addition to the letter, Senator Cynthia Lummis (R-WY) and several colleagues are introducing the “Protecting Our Wealth of Energy Resources (POWER) Act”, which would prohibit the President from issuing new energy or mineral moratoria on federal lands and waters without Congressional approval. This legislation is a welcomed approach towards ensuring Congressional approval for potential economically destructive regulations and rules by the Executive Branch.
We strongly urge this administration to rescind this executive order and instead commit to a neutral, effective, and all of the above approach energy agenda.