Joe Biden resumes oil and gas leases on federal land

Joe Biden resumes oil and gas leases on federal land

The Biden administration will restart oil and gas leasing on federal lands as it comes under increasing pressure to bring down high petrol prices, backing away from a freeze that had riled industry executives.

Around 144,000 acres of public lands will be put up for sale next week, the interior department said on Friday, marking the end of a moratorium on new leases imposed by the president in one of his earliest acts in office. In June last year, a federal court in Louisiana ordered the Biden administration to restart the leasing programme.

The new leases will charge higher royalty payments from oil and gas producers than before — 18.75 per cent compared with 12.5 per cent previously — and significantly cut back on the amount of land that will be auctioned compared to what the industry had asked for.

“Today, we begin to reset how and what we consider to be the highest and best use of Americans’ resources for the benefit of all current and future generations,” said Deb Haaland, interior secretary.

The move comes as President Joe Biden finds himself under intensifying political pressure over high fuel prices, which have driven soaring inflation. The national average price of gasoline on Friday