Biden's Postponement on New Oil, Gas Lease Poses Problem for New Mexico

By Mary Anne R. (staff@latinpost.com) First Posted: Jan 26, 2021 11:18 PM EST

The BP Deepwater Horizon oil well is seen on August 3, 2010 in the Gulf of Mexico off the coast of Louisiana. BP is to begin plugging the damaged oil well today with a "static kill", by pumping mud into it. A new estimate puts the total amount of oil leaked into the Gulf at 205.8 million gallons. (Photo : Chris Graythen/Getty Images)

U.S. President Joe Biden's 60-day moratorium on new oil and natural gas leases, as well as drilling permits, is causing the state of New Mexico a concern.

Top Republicans and local leaders in communities that border the Permian Basis say any moves to make the suspension permanent would be economically upsetting for the state as half of New Mexico's production happens on federal land and amounts to hundreds of millions of dollars royalties annually.

Congressional members from western states are also raising concerns, according to an ABC News report.

They said that the effects of the moratorium imposed by Biden will hurt small businesses that are already struggling due to the effects brought by the pandemic.

"During his inauguration, President Biden spoke about bringing our nation together. Eliminating drilling on public lands will cost thousands of New Mexicans their jobs and destroy what's left of our state's economy," Carlsbad Mayor Dale Janway was quoted on a report.

Janway further questioned how that brings them together, saying that environmental efforts should be fair and well-researched not hurt an already impoverished state.

Natural gas industry provides thousands of jobs

Meanwhile, Utah's state delegation asked for Biden to reconsider what they described as arbitrary decision. They argued that such a widespread suspension of routine permitting decisions normally made in the field is unprecedented.

Industry groups claim that the order effectively brings all regulatory activity to a halt, according to a U.S. News report.

A spokesman for the New Mexico Oil and Gas Association, Robert McEntyre, said that it really has the opposite intent.

McEntyre added that some natural gas is going to be captured and that is not what operators want to do, saying that they want to capture it and send it to market.

Aside from earning revenues from New Mexico resources, the industry also supports 100,000 direct related jobs.

Gov. Michelle Lujan Grisham's office said that the administration reviewing the federal action and the short-term and long-term fiscal effects for the state.

Biden's Climate Steps

Biden has put his team to work to review actions taken by former President Donald Trump, aiming to revers any adverse effects it might have on the environment and public health.

The impact could be more widespread for energy and auto industries as Biden aims to reduce harmful emissions form cars, trucks, and SUVs, according to a Yahoo report.

This could range from how companies extract resources from the ground to the safety of pipelines that distribute the fuels.

Biden aims to transition the country to 100 percent renewable energy for electricity generation by 2035, as well as zero-emission in the overall economy by 2050.

Meanwhile, Biden rejoins the Paris climate agreement after Trump formally withdrew the country from the climate change accord on Nov. 4.

Biden said that it will recommit its emissions reduction goals under the agreement and lead the effort to get other countries to improve their climate goals, as well.

Biden has plans that extend beyond the Paris climate accord, which includes a $2 trillion economic plan to invest in clean energy, cut carbon emissions from electric power, according to a CNBC report.

Tags biden, oil, Gas, Lease, New Mexico