Biden Derails Oil and Gas Leases as Domestic Gas Prices Soar

As gas prices continue to rise, the Biden presidency announced this week it is going to indefinitely delay new oil and gas drilling on federal property and other energy-related activities.

This is in response to a federal court ruling prohibiting the presidency from using its high “social cost of carbon” estimate. 

Social Cost of Carbon

According to MarketWatch, United States District Judge James Cain of the Western District of Louisiana banned federal agencies from using an estimate known as the ‘social cost of carbon.’

This ban blocks using the social cost of carbon to quantify pollution caused by carbon emissions from the energy industry and other industrial sectors. 

The judgment precluded the Biden administration from utilizing a more bullish assessment of the harm caused to society by each additional ton of greenhouse gas emissions.

The president reinstated the climate cost estimate to about $51 per ton of carbon dioxide emissions on his first day in office, after President Trump decreased it to $7 or less per ton.

In contrast to President Obama’s prior estimate, Trump’s included only effects felt in the United States.

Senator John Barrasso (R) of Wyoming chastised the Biden presidency for continuing to “defy the courts and the law” by delaying oil drilling on federal lands.

“Despite a global energy crisis, unprecedented inflation, and increasing gasoline costs, the Biden administration intends to kill American energy output,” Barrasso attacked Biden. 

Gas Price and Sanctions on Russia

The Wall Street Journal reported Thursday that oil prices surpassed $100 a barrel for the first time in almost a decade.

It also noted, “the commodity is set to squeeze American families, drive up inflation, dent the economic expansion, and create new discomfort for the Federal Reserve, as it tries to increase interest rates.”

“On Thursday morning, Brent crude, the worldwide energy benchmark, surged above $100 a barrel,” the report stated.

“Futures for West Texas Intermediate, the primary grade of US crude, surpassed $96 a barrel late Wednesday, marking a 28 percent year-to-date gain and a 52 percent year-to-date gain over the previous 12 months.”

“The standard, which temporarily fell below zero while the epidemic unfurled in spring 2020, is now at its highest level since 2014.”

President Biden delivered a speech Wednesday, warning Americans to brace themselves for impending economic hardship, notably higher gas costs as a result of Russia’s sanctions.

“As we react, my administration is utilizing every instrument available to safeguard American businesses and consumers against rising gas prices,” Biden said.

“As I stated last week, protecting liberty would impose consequences on us, both abroad and at home. We must be candid about this.”

“However, as we proceed, I will take robust action to ensure the pain of our sanctions is directed at the Russian economy, not ours,” the president concluded.