US Energy Alliance: Texas to suffer if Biden Administration doesn’t Nullify Bans on Mexico Drilling

Washington: The US state of Texas would be significantly impacted if the Biden administration halts oil and gas leases on federal territory in the Gulf of Mexico for a prolonged period of time, Texas Alliance of Energy Producers President Jason Modglin reported.

After assuming the office in January, President Biden signed executive orders that temporarily suspended new oil and gas leases on federal lands and rescinded the construction permit for the Keystone XL pipeline, which was previously granted by former President Donald Trump in 2019.

Delineating the loss incurred by the moratorium, Modglin warned that a permanent ban on offshore drilling in federal waters would slash revenues for the state and federal governments. 

Production in the Gulf of Mexico accounts for about 20 percent of the overall US oil and gas production which employees over 120,000 residents. He said,” the novel coronavirus pandemic has already harmed the Texas energy sector, leading to about 60,000 jobs lost in the state in the upstream oil and gas base.” Furthermore 10,000 jobs were lost due to cancelation of permits for pipelines. 

Secretary of the Interior Debra Haaland, reported that the ban would be temporary in order to review the federal fossil fuel program. According to the Interior Department’s office, fossil fuel leasing on federal and tribal land accounts for nearly a quarter of the United States’ annual carbon output.