The Biden administration’s continued war on the oil and gas industry took another step on Friday when the Interior Department finalized a new federal rule that will likely increase the cost of drilling on public lands. It came as the White House just took an opposite step to help renewable energy production on the same land.
It’s as though the administration figures if it can’t kill oil and gas through environmental restrictions, it will do it by attacking the bottom line of producers.
Under the rule, the government’s share of the profit from the oil will increase. The royalty rate will be bumped from 12.5% to 16.67% and the rent charged to oil companies to drill on public land will also be increased.
That’s not all. The administration is increasing the minimum bid that companies can place in order to win leases to drill on the public land.
While the White House is going after oil and gas, it is doing just the opposite for renewable energy. The new rule was announced a day after Biden’s administration moved to cut costs for producing renewable energy on public land, according to The Hill.
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