American Oil and Gas Reporter - March 2022 - 16

IndustryDigest
Biden Signs EO To Ban
Russian Oil, LNG Imports
WASHINGTON-The White House
on March 8 announced President Joe
Biden would sign an executive order to
ban the import of Russian oil, liquefied
natural gas and coal to the United
States, calling the move a significant
action with widespread bipartisan
support that will further deprive
President Putin of the economic
resources he uses to continue his
needless war of choice.
" The United States made this decision
in close consultation with our allies and
partners around the world, as well as
members of congress of both parties, "
the announcement says. " The United
States is able to take this step because of
our strong domestic energy infrastructure
and we recognize that not all of our allies
and partners are currently in a position to
join us. But we are united with our allies
and partners in working together to
reduce our collective dependence on
Russian energy and keep the pressure
mounting on Putin, while at the same
taking active steps to limit impacts on
global energy markets and protect our
own economies. "
Noting that the United States imported
nearly 700,000 barrels a day of Russian
crude and refined products in 2021, the
administration says the EO bans:
· U.S. imports of Russian crude oil
and certain petroleum products,
liquefied natural gas and coal;
· New U.S. investment in Russia's
energy sector; and
· Americans from financing or
enabling foreign companies that invest
in Russian energy production.
Texas Independent Producers &
Royalty Owners Association President
Ed Longanecker is among those
applauding the ban. He is quick to
advise the administration to do what it
can to meet any supply shortfalls by
encouraging-or at least not restraining-
domestic output.
" President Biden's decision to ban
Russian energy imports means domestic
production is now more important than
ever, " Longanecker states. " Texas
producers stand ready to meet growing
demand for oil and natural gas. The Lone
Star State has been and will continue to
lead the nation in domestic energy
production, and we embrace the role we
play in establishing U.S. energy security.
16 THE AMERICAN OIL & GAS REPORTER
Longanecker says the administration
should restart leasing on federal lands,
while the Federal Energy Regulatory
Commission must change its policy
guidance to remove impediments to
developing U.S. energy infrastructure
and should expedite pending
applications to expand operating
capacity at three already approved LNG
export facilities.
" And finally, the White House should
convene an emergency council of U.S.
operators to discuss and execute
strategies to increase domestic
production to support the efforts of our
allies and trade partners to diversify
their supply of oil and natural gas to
prevent disruptions in global energy
supplies, " Longanecker recommends.
Louisiana Oil & Gas Association
President Mike Moncla concurs with
Longanecker's perspective. " Today's
ban on Russian energy imports is an
important step in applying pressure on
Russia's aggression in Ukraine, " he
assesses. However, he adds, " It's clear
that the Biden administration has not
had domestic energy's best interest in
mind so far.
" Let's not forget, " he adds, " the price
of oil had doubled and the price of a
gallon of gas had tripled before Russia
invaded Ukraine's soverign borders. "
The administration notes it has
committed to releasing more than 90
million barrels from the U.S. Strategic
Petroleum Reserve this fiscal year.
Collectively, the International Energy
Agency member countries have agreed
to an initial release of 60 million barrels
of crude oil from their strategic
petroleum reserves, with the United
States committing half that through an
emergency sale it announced in early
March. The administration says it
remains in conversations with energy
producers and consumers on other steps
it can take to " ensure a stable global
supply of energy. "
Even amid climbing oil prices, the
White House continues to back
alternative sources. " In the long run,
the way to avoid high gas prices is to
speed up-not slow down-our transition
to a clean energy future, " a White
House fact sheet claims. " We cannot
drill our way out of dependence on a
global commodity controlled in part by
foreign nations and their leaders,
including Putin. The only way to
eliminate Putin's and every other
producing country's ability to use oil as
an economic weapon is to reduce our
dependency on oil. " ❒
PAW Among Many
To Blast Administration
For Skipping Lease Sale
CASPER, WY.-The U.S. Bureau of
Land Management under the Biden
administration has failed to hold lease
sales in Wyoming and some other
Western states for five consecutive
quarters. This lapse not only conflicts
with federal law, the Petroleum
Association of Wyoming notes, but
also keeps significant dollars out of
state coffers.
In mid-February, during the same
week that the Wyoming Legislature
convened the 2022 Budget Session to
set the state's biennial budget, BLM
failed to issue a notice for competitive
lease sale ahead of the 45-day deadline
necessary to hold a lease auction in the
first quarter of 2022, PAW points out.
The association describes this failure as
" a dereliction of duty that will have
serious repercussions on Wyoming's
budget and impact funding for
infrastructure, public education and
other essential government services. "
Moreover, the association adds, the
lease sale drought endures " despite
Congressionally mandated obligations
under the Mineral Leasing Act and June
2021 nationwide injunction requiring
the resumption of lease auctions. "
" Given Wyoming's role as a leader
in oil and natural gas production on
federal lands, the administration's
failure to uphold the law in regard to
quarterly lease sales will have tangible
negative impacts on the state, " warns
PAW President Pete Obermueller.
" You would think in light of rising gas
prices, rampant inflation and global
instability, the President would do
everything in his power to unleash
America's natural resources-spurring
the economy and reinforcing our
national security in the process. "
In an August 2021 court filing, the
Biden administration expressed plans to
follow a federal court ruling that
ordered it to resume quarterly lease
sales (AOGR, September 2021, pg. 16).
However, another ruling muddied the
outlook on Jan. 27, when a federal
judge invalidated 1.7 million acres of
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