Oil and Gas Groups Assail Biden’s ‘Misleading’ Call to Penalize US Drillers for Unused Leases

President Joe Biden’s remarks demanding U.S. oil and gas drillers to pay penalties when federal leases go unused sparks outcry from industry experts and trade associations.

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“The administration is claiming they are responding to ‘Putin’s Price Hike at the Pump’—but their planned solution is to target American energy producers with new taxes and fees,” American Exploration and Production Council CEO Anne Bradbury said in a statement. (Source: HartEnergy.com; Sodel Vladyslav, Ronnie Chua/Shutterstock.com)

In an effort to “ease pain at the pump,” President Joe Biden on March 31 said he will call on the Congress to ask U.S. oil and gas drillers to pay penalties on unused federal leases—an action he believes will encourage drillers to pump more.

“Today, President Biden is calling on Congress to make companies pay fees on wells from their leases that they haven’t used in years and on acres of public lands that they are hoarding without producing,” the White House said in a statement.

Daniel Naatz, executive vice president of the Independent Petroleum Association of America (IPAA) called the statements “misleading,” adding that this would be another fee on top of rents that oil and gas companies are already paying.

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Faiza Rizvi

Faiza Rizvi is a senior editor of ESG for Hart Energy's editorial department, with a strong focus on E&P Plus and HartEnergy.com. She has been covering all facets of the U.S. and international energy industry for over 5 years.