The Unlikely Beneficiary Of The Climate Bill The Us Oil And Gas Industry

However, the industry’s setback was short-lived. The climate measure signed by President Joe Biden on Tuesday sidesteps administration concerns about emissions and guarantees new drilling opportunities in the Gulf of Mexico and Alaska. The legislation was created to secure support from a top recipient of oil and gas donations, Democratic Sen. Joe Manchin, and was shaped in part by industry lobbyists. While the deflation law focuses on clean energy incentives that could drastically reduce overall U.S. emissions, it also bolsters oil and gas interests by mandating the leasing of vast tracts of public land and off the nation’s coasts. And it locks renewables and fossil fuels together: If the Biden administration wants solar and wind on public land, it must first offer new oil and gas leases. As a result, U.S. oil and gas production and emissions from burning the fuel could continue to rise, according to some industry analysts and climate experts. As domestic demand declines, that means more fossil fuels are exported to growing foreign markets, including the Gulf, where pollution from oil and gas activity plagues many poor and minority communities. For industry, the new law signals that Democrats are willing to work with them and abandon the idea that fossil fuels could soon become obsolete, said Andrew Gillick with Enverus, an energy analytics firm whose data is used by industry and government agencies. “People who think oil and gas will be gone in 10 years may not be thinking about what that means,” Gillick said. “Both supply and demand will increase over the next decade.” The result would be more planet-warming carbon dioxide — up to 110 million tons (100 million metric tons) a year — from oil and gas produced in the U.S. by 2030, with most of it coming from fuels burned after export , according to some economists and analysts. Others predict smaller increases. The law restores within 30 days the 2,700 square miles (6,950 square kilometers) of Gulf leases that had been withheld. It ensures that companies like Chevron will have a chance to expand and sidesteps U.S. District Judge Rudolph Contreras’ concerns that the government was “going full steam ahead” without adequately looking at global emissions increases. The importance of the measure was underscored by Chevron executives during a recent earnings call, where they predicted continued development in the Gulf and directly linked it to the ability to “lease and acquire additional acreage.” The fossil fuel industry’s ambitions are now tied directly to wind and solar development: The bill prohibits leasing federal lands and waters for renewable energy unless the government has offered at least 2 million acres (810,000 hectares) of public land and 60 million acres (24). million hectares) in federal waters for oil and gas leases during the previous year. The law does not require that leases be sold, only that they be offered for sale. Critics of the measure say it holds renewables hostage unless the fossil fuel industry gets its way. Some accuse Biden and Democrats of abandoning promises to deal with the industry. “That’s another 10 years of mandatory leases,” said Brett Hartl with the Center for Biological Diversity. “We’ll do our best, but it’s hard to fight them all.” Communities near polluting industrial facilities will continue to suffer if the oil and gas industry survives, said Beverly Wright, executive director of the Deep South Center for Environmental Justice and a member of the White House Environmental Justice Advisory Council. He worries that the law’s incentives for technology that sequesters carbon from industrial processes could also perpetuate harm to these poor, mostly minority residents. In the parish of St. James, Louisiana, where petrochemical plants dominate the landscape, environmental justice activist Sharon Lavigne said the legislation would allow fossil fuel pollution to continue to harm her community. “That’s just like saying they’re going to keep poisoning us, they’re going to keep giving us cancer,” said Lavigne, a former high school teacher who founded the group Rising St. James. The lease provisions signal the failure of efforts by environmentalists and social justice advocates to impose a nationwide lease ban. The climax of the movement came when Biden followed through on campaign pledges to end new drilling on federal lands by ordering in his first week in office to suspend lease sales. Republicans have complained that the government still isn’t making enough sales, even after a federal judge blocked Biden’s order. On Wednesday, a federal appeals court threw out an injunction that had blocked the lease suspension, but the impact could be minimal because of the mandates of the new law. A range of potential drilling sites is crucial for companies to maintain future production because wells can take years to develop and some don’t produce anything, said Jim Noe, an industry lobbyist who has worked with its staff Senate on the lease provisions of the climate bill. “The industry has a constant need — almost like a runway — for lease sales,” said Noe, an attorney at Holland & Knight who has represented offshore oil and gas companies. Noe said demand for oil and gas won’t drop immediately, and drilling in the Gulf brings jobs and more energy security. A United Nations report before Biden took office warned that the US and other nations must sharply cut investments in oil, gas and coal to prevent temperatures from rising more than 1.5 degrees Celsius (2.7 degrees Fahrenheit). since the pre-industrial era. Other provisions in the bill that focus on renewable energy and sequestering carbon dioxide from industrial facilities would result in net emissions reductions 10 to 50 times greater than emissions increases from burning more oil and natural gas, analysts say. The increase in oil and gas emissions could still be significant — as much as 77 million to 110 million tons (70 to 100 million metric tons) of extra carbon dioxide annually by 2030 from new leasing, according to economist Brian Perst with the Research Group Resources for the Future. Other experts had lower projections: The San Francisco-based climate research group Energy Innovation predicted up to 55 million tons (50 million metric tons) of extra carbon dioxide a year from new leasing. Researchers from Princeton and Dartmouth said the impact could be negligible or as much as 22 million tons (20 million metric tons) in the U.S., plus much more overseas. Any increase depends on global oil and gas prices holding up – and that in turn depends on a number of factors, including the ongoing war in Ukraine, said Robbie Orvis with Energy Innovation. “It may increase oil and gas production somewhat, but that’s largely offset by all the other pieces of the bill,” Orvis said. However, there is uncertainty about how quickly other pieces of the bill could deliver emissions cuts. Wind and solar construction could face supply chain problems, hampering many economic sectors. And carbon capture and storage technology is still being improved and is in limited use. Other provisions could potentially make it more expensive to drill on public lands and waters. There are modest increases in royalties and rental rates, and a new $5 per acre fee when companies want specific parcels offered for lease. Another fee would require companies to pay for the natural gas, or methane, that enters the atmosphere as a powerful greenhouse gas. Higher costs could dampen interest among companies, said Mark Squillace, a professor of natural resources law at the University of Colorado School of Law. “While the industry is going to get more oil and gas leases if they want it, it’s an interesting question: Do they want it?” Squillace asked. __ Phyllis reported from St. Louis.

On Twitter follow Brown: @MatthewBrownAP and Phillis: @mjphillis

The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental politics. AP is solely responsible for all content. For all of AP’s environmental coverage, visit

title: “The Unlikely Beneficiary Of The Climate Bill The Us Oil And Gas Industry Klmat” ShowToc: true date: “2022-12-05” author: “Hugo Marques”

However, the industry’s setback was short-lived. The climate measure signed by President Joe Biden on Tuesday sidesteps administration concerns about emissions and guarantees new drilling opportunities in the Gulf of Mexico and Alaska. The legislation was created to secure support from a top recipient of oil and gas donations, Democratic Sen. Joe Manchin, and was shaped in part by industry lobbyists. While the deflation law focuses on clean energy incentives that could drastically reduce overall U.S. emissions, it also bolsters oil and gas interests by mandating the leasing of vast tracts of public land and off the nation’s coasts. And it locks renewables and fossil fuels together: If the Biden administration wants solar and wind on public land, it must first offer new oil and gas leases. As a result, U.S. oil and gas production and emissions from burning the fuel could continue to rise, according to some industry analysts and climate experts. As domestic demand declines, that means more fossil fuels are exported to growing foreign markets, including the Gulf, where pollution from oil and gas activity plagues many poor and minority communities. For industry, the new law signals that Democrats are willing to work with them and abandon the idea that fossil fuels could soon become obsolete, said Andrew Gillick with Enverus, an energy analytics firm whose data is used by industry and government agencies. “People who think oil and gas will be gone in 10 years may not be thinking about what that means,” Gillick said. “Both supply and demand will increase over the next decade.” The result would be more planet-warming carbon dioxide — up to 110 million tons (100 million metric tons) a year — from oil and gas produced in the U.S. by 2030, with most of it coming from fuels burned after export , according to some economists and analysts. Others predict smaller increases. The law restores within 30 days the 2,700 square miles (6,950 square kilometers) of Gulf leases that had been withheld. It ensures that companies like Chevron will have a chance to expand and sidesteps U.S. District Judge Rudolph Contreras’ concerns that the government was “going full steam ahead” without adequately looking at global emissions increases. The importance of the measure was underscored by Chevron executives during a recent earnings call, where they predicted continued development in the Gulf and directly linked it to the ability to “lease and acquire additional acreage.” The fossil fuel industry’s ambitions are now tied directly to wind and solar development: The bill prohibits leasing federal lands and waters for renewable energy unless the government has offered at least 2 million acres (810,000 hectares) of public land and 60 million acres (24). million hectares) in federal waters for oil and gas leases during the previous year. The law does not require that leases be sold, only that they be offered for sale. Critics of the measure say it holds renewables hostage unless the fossil fuel industry gets its way. Some accuse Biden and Democrats of abandoning promises to deal with the industry. “That’s another 10 years of mandatory leases,” said Brett Hartl with the Center for Biological Diversity. “We’ll do our best, but it’s hard to fight them all.” Communities near polluting industrial facilities will continue to suffer if the oil and gas industry survives, said Beverly Wright, executive director of the Deep South Center for Environmental Justice and a member of the White House Environmental Justice Advisory Council. He worries that the law’s incentives for technology that sequesters carbon from industrial processes could also perpetuate harm to these poor, mostly minority residents. In the parish of St. James, Louisiana, where petrochemical plants dominate the landscape, environmental justice activist Sharon Lavigne said the legislation would allow fossil fuel pollution to continue to harm her community. “That’s just like saying they’re going to keep poisoning us, they’re going to keep giving us cancer,” said Lavigne, a former high school teacher who founded the group Rising St. James. The lease provisions signal the failure of efforts by environmentalists and social justice advocates to impose a nationwide lease ban. The climax of the movement came when Biden followed through on campaign pledges to end new drilling on federal lands by ordering in his first week in office to suspend lease sales. Republicans have complained that the government still isn’t making enough sales, even after a federal judge blocked Biden’s order. On Wednesday, a federal appeals court threw out an injunction that had blocked the lease suspension, but the impact could be minimal because of the mandates of the new law. A range of potential drilling sites is crucial for companies to maintain future production because wells can take years to develop and some don’t produce anything, said Jim Noe, an industry lobbyist who has worked with its staff Senate on the lease provisions of the climate bill. “The industry has a constant need — almost like a runway — for lease sales,” said Noe, an attorney at Holland & Knight who has represented offshore oil and gas companies. Noe said demand for oil and gas won’t drop immediately, and drilling in the Gulf brings jobs and more energy security. A United Nations report before Biden took office warned that the US and other nations must sharply cut investments in oil, gas and coal to prevent temperatures from rising more than 1.5 degrees Celsius (2.7 degrees Fahrenheit). since the pre-industrial era. Other provisions in the bill that focus on renewable energy and sequestering carbon dioxide from industrial facilities would result in net emissions reductions 10 to 50 times greater than emissions increases from burning more oil and natural gas, analysts say. The increase in oil and gas emissions could still be significant — as much as 77 million to 110 million tons (70 to 100 million metric tons) of extra carbon dioxide annually by 2030 from new leasing, according to economist Brian Perst with the Research Group Resources for the Future. Other experts had lower projections: The San Francisco-based climate research group Energy Innovation predicted up to 55 million tons (50 million metric tons) of extra carbon dioxide a year from new leasing. Researchers from Princeton and Dartmouth said the impact could be negligible or as much as 22 million tons (20 million metric tons) in the U.S., plus much more overseas. Any increase depends on global oil and gas prices holding up – and that in turn depends on a number of factors, including the ongoing war in Ukraine, said Robbie Orvis with Energy Innovation. “It may increase oil and gas production somewhat, but that’s largely offset by all the other pieces of the bill,” Orvis said. However, there is uncertainty about how quickly other pieces of the bill could deliver emissions cuts. Wind and solar construction could face supply chain problems, hampering many economic sectors. And carbon capture and storage technology is still being improved and is in limited use. Other provisions could potentially make it more expensive to drill on public lands and waters. There are modest increases in royalties and rental rates, and a new $5 per acre fee when companies want specific parcels offered for lease. Another fee would require companies to pay for the natural gas, or methane, that enters the atmosphere as a powerful greenhouse gas. Higher costs could dampen interest among companies, said Mark Squillace, a professor of natural resources law at the University of Colorado School of Law. “While the industry is going to get more oil and gas leases if they want it, it’s an interesting question: Do they want it?” Squillace asked. __ Phyllis reported from St. Louis.

On Twitter follow Brown: @MatthewBrownAP and Phillis: @mjphillis

The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental politics. AP is solely responsible for all content. For all of AP’s environmental coverage, visit

title: “The Unlikely Beneficiary Of The Climate Bill The Us Oil And Gas Industry Klmat” ShowToc: true date: “2022-11-28” author: “Cameron Head”

However, the industry’s setback was short-lived. The climate measure signed by President Joe Biden on Tuesday sidesteps administration concerns about emissions and guarantees new drilling opportunities in the Gulf of Mexico and Alaska. The legislation was created to secure support from a top recipient of oil and gas donations, Democratic Sen. Joe Manchin, and was shaped in part by industry lobbyists. While the deflation law focuses on clean energy incentives that could drastically reduce overall U.S. emissions, it also bolsters oil and gas interests by mandating the leasing of vast tracts of public land and off the nation’s coasts. And it locks renewables and fossil fuels together: If the Biden administration wants solar and wind on public land, it must first offer new oil and gas leases. As a result, U.S. oil and gas production and emissions from burning the fuel could continue to rise, according to some industry analysts and climate experts. As domestic demand declines, that means more fossil fuels are exported to growing foreign markets, including the Gulf, where pollution from oil and gas activity plagues many poor and minority communities. For industry, the new law signals that Democrats are willing to work with them and abandon the idea that fossil fuels could soon become obsolete, said Andrew Gillick with Enverus, an energy analytics firm whose data is used by industry and government agencies. “People who think oil and gas will be gone in 10 years may not be thinking about what that means,” Gillick said. “Both supply and demand will increase over the next decade.” The result would be more planet-warming carbon dioxide — up to 110 million tons (100 million metric tons) a year — from oil and gas produced in the U.S. by 2030, with most of it coming from fuels burned after export , according to some economists and analysts. Others predict smaller increases. The law restores within 30 days the 2,700 square miles (6,950 square kilometers) of Gulf leases that had been withheld. It ensures that companies like Chevron will have a chance to expand and sidesteps U.S. District Judge Rudolph Contreras’ concerns that the government was “going full steam ahead” without adequately looking at global emissions increases. The importance of the measure was underscored by Chevron executives during a recent earnings call, where they predicted continued development in the Gulf and directly linked it to the ability to “lease and acquire additional acreage.” The fossil fuel industry’s ambitions are now tied directly to wind and solar development: The bill prohibits leasing federal lands and waters for renewable energy unless the government has offered at least 2 million acres (810,000 hectares) of public land and 60 million acres (24). million hectares) in federal waters for oil and gas leases during the previous year. The law does not require that leases be sold, only that they be offered for sale. Critics of the measure say it holds renewables hostage unless the fossil fuel industry gets its way. Some accuse Biden and Democrats of abandoning promises to deal with the industry. “That’s another 10 years of mandatory leases,” said Brett Hartl with the Center for Biological Diversity. “We’ll do our best, but it’s hard to fight them all.” Communities near polluting industrial facilities will continue to suffer if the oil and gas industry survives, said Beverly Wright, executive director of the Deep South Center for Environmental Justice and a member of the White House Environmental Justice Advisory Council. He worries that the law’s incentives for technology that sequesters carbon from industrial processes could also perpetuate harm to these poor, mostly minority residents. In the parish of St. James, Louisiana, where petrochemical plants dominate the landscape, environmental justice activist Sharon Lavigne said the legislation would allow fossil fuel pollution to continue to harm her community. “That’s just like saying they’re going to keep poisoning us, they’re going to keep giving us cancer,” said Lavigne, a former high school teacher who founded the group Rising St. James. The lease provisions signal the failure of efforts by environmentalists and social justice advocates to impose a nationwide lease ban. The climax of the movement came when Biden followed through on campaign pledges to end new drilling on federal lands by ordering in his first week in office to suspend lease sales. Republicans have complained that the government still isn’t making enough sales, even after a federal judge blocked Biden’s order. On Wednesday, a federal appeals court threw out an injunction that had blocked the lease suspension, but the impact could be minimal because of the mandates of the new law. A range of potential drilling sites is crucial for companies to maintain future production because wells can take years to develop and some don’t produce anything, said Jim Noe, an industry lobbyist who has worked with its staff Senate on the lease provisions of the climate bill. “The industry has a constant need — almost like a runway — for lease sales,” said Noe, an attorney at Holland & Knight who has represented offshore oil and gas companies. Noe said demand for oil and gas won’t drop immediately, and drilling in the Gulf brings jobs and more energy security. A United Nations report before Biden took office warned that the US and other nations must sharply cut investments in oil, gas and coal to prevent temperatures from rising more than 1.5 degrees Celsius (2.7 degrees Fahrenheit). since the pre-industrial era. Other provisions in the bill that focus on renewable energy and sequestering carbon dioxide from industrial facilities would result in net emissions reductions 10 to 50 times greater than emissions increases from burning more oil and natural gas, analysts say. The increase in oil and gas emissions could still be significant — as much as 77 million to 110 million tons (70 to 100 million metric tons) of extra carbon dioxide annually by 2030 from new leasing, according to economist Brian Perst with the Research Group Resources for the Future. Other experts had lower projections: The San Francisco-based climate research group Energy Innovation predicted up to 55 million tons (50 million metric tons) of extra carbon dioxide a year from new leasing. Researchers from Princeton and Dartmouth said the impact could be negligible or as much as 22 million tons (20 million metric tons) in the U.S., plus much more overseas. Any increase depends on global oil and gas prices holding up – and that in turn depends on a number of factors, including the ongoing war in Ukraine, said Robbie Orvis with Energy Innovation. “It may increase oil and gas production somewhat, but that’s largely offset by all the other pieces of the bill,” Orvis said. However, there is uncertainty about how quickly other pieces of the bill could deliver emissions cuts. Wind and solar construction could face supply chain problems, hampering many economic sectors. And carbon capture and storage technology is still being improved and is in limited use. Other provisions could potentially make it more expensive to drill on public lands and waters. There are modest increases in royalties and rental rates, and a new $5 per acre fee when companies want specific parcels offered for lease. Another fee would require companies to pay for the natural gas, or methane, that enters the atmosphere as a powerful greenhouse gas. Higher costs could dampen interest among companies, said Mark Squillace, a professor of natural resources law at the University of Colorado School of Law. “While the industry is going to get more oil and gas leases if they want it, it’s an interesting question: Do they want it?” Squillace asked. __ Phyllis reported from St. Louis.

On Twitter follow Brown: @MatthewBrownAP and Phillis: @mjphillis

The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental politics. AP is solely responsible for all content. For all of AP’s environmental coverage, visit

title: “The Unlikely Beneficiary Of The Climate Bill The Us Oil And Gas Industry Klmat” ShowToc: true date: “2022-12-17” author: “Teresita Fife”

However, the industry’s setback was short-lived. The climate measure signed by President Joe Biden on Tuesday sidesteps administration concerns about emissions and guarantees new drilling opportunities in the Gulf of Mexico and Alaska. The legislation was created to secure support from a top recipient of oil and gas donations, Democratic Sen. Joe Manchin, and was shaped in part by industry lobbyists. While the deflation law focuses on clean energy incentives that could drastically reduce overall U.S. emissions, it also bolsters oil and gas interests by mandating the leasing of vast tracts of public land and off the nation’s coasts. And it locks renewables and fossil fuels together: If the Biden administration wants solar and wind on public land, it must first offer new oil and gas leases. As a result, U.S. oil and gas production and emissions from burning the fuel could continue to rise, according to some industry analysts and climate experts. As domestic demand declines, that means more fossil fuels are exported to growing foreign markets, including the Gulf, where pollution from oil and gas activity plagues many poor and minority communities. For industry, the new law signals that Democrats are willing to work with them and abandon the idea that fossil fuels could soon become obsolete, said Andrew Gillick with Enverus, an energy analytics firm whose data is used by industry and government agencies. “People who think oil and gas will be gone in 10 years may not be thinking about what that means,” Gillick said. “Both supply and demand will increase over the next decade.” The result would be more planet-warming carbon dioxide — up to 110 million tons (100 million metric tons) a year — from oil and gas produced in the U.S. by 2030, with most of it coming from fuels burned after export , according to some economists and analysts. Others predict smaller increases. The law restores within 30 days the 2,700 square miles (6,950 square kilometers) of Gulf leases that had been withheld. It ensures that companies like Chevron will have a chance to expand and sidesteps U.S. District Judge Rudolph Contreras’ concerns that the government was “going full steam ahead” without adequately looking at global emissions increases. The importance of the measure was underscored by Chevron executives during a recent earnings call, where they predicted continued development in the Gulf and directly linked it to the ability to “lease and acquire additional acreage.” The fossil fuel industry’s ambitions are now tied directly to wind and solar development: The bill prohibits leasing federal lands and waters for renewable energy unless the government has offered at least 2 million acres (810,000 hectares) of public land and 60 million acres (24). million hectares) in federal waters for oil and gas leases during the previous year. The law does not require that leases be sold, only that they be offered for sale. Critics of the measure say it holds renewables hostage unless the fossil fuel industry gets its way. Some accuse Biden and Democrats of abandoning promises to deal with the industry. “That’s another 10 years of mandatory leases,” said Brett Hartl with the Center for Biological Diversity. “We’ll do our best, but it’s hard to fight them all.” Communities near polluting industrial facilities will continue to suffer if the oil and gas industry survives, said Beverly Wright, executive director of the Deep South Center for Environmental Justice and a member of the White House Environmental Justice Advisory Council. He worries that the law’s incentives for technology that sequesters carbon from industrial processes could also perpetuate harm to these poor, mostly minority residents. In the parish of St. James, Louisiana, where petrochemical plants dominate the landscape, environmental justice activist Sharon Lavigne said the legislation would allow fossil fuel pollution to continue to harm her community. “That’s just like saying they’re going to keep poisoning us, they’re going to keep giving us cancer,” said Lavigne, a former high school teacher who founded the group Rising St. James. The lease provisions signal the failure of efforts by environmentalists and social justice advocates to impose a nationwide lease ban. The climax of the movement came when Biden followed through on campaign pledges to end new drilling on federal lands by ordering in his first week in office to suspend lease sales. Republicans have complained that the government still isn’t making enough sales, even after a federal judge blocked Biden’s order. On Wednesday, a federal appeals court threw out an injunction that had blocked the lease suspension, but the impact could be minimal because of the mandates of the new law. A range of potential drilling sites is crucial for companies to maintain future production because wells can take years to develop and some don’t produce anything, said Jim Noe, an industry lobbyist who has worked with its staff Senate on the lease provisions of the climate bill. “The industry has a constant need — almost like a runway — for lease sales,” said Noe, an attorney at Holland & Knight who has represented offshore oil and gas companies. Noe said demand for oil and gas won’t drop immediately, and drilling in the Gulf brings jobs and more energy security. A United Nations report before Biden took office warned that the US and other nations must sharply cut investments in oil, gas and coal to prevent temperatures from rising more than 1.5 degrees Celsius (2.7 degrees Fahrenheit). since the pre-industrial era. Other provisions in the bill that focus on renewable energy and sequestering carbon dioxide from industrial facilities would result in net emissions reductions 10 to 50 times greater than emissions increases from burning more oil and natural gas, analysts say. The increase in oil and gas emissions could still be significant — as much as 77 million to 110 million tons (70 to 100 million metric tons) of extra carbon dioxide annually by 2030 from new leasing, according to economist Brian Perst with the Research Group Resources for the Future. Other experts had lower projections: The San Francisco-based climate research group Energy Innovation predicted up to 55 million tons (50 million metric tons) of extra carbon dioxide a year from new leasing. Researchers from Princeton and Dartmouth said the impact could be negligible or as much as 22 million tons (20 million metric tons) in the U.S., plus much more overseas. Any increase depends on global oil and gas prices holding up – and that in turn depends on a number of factors, including the ongoing war in Ukraine, said Robbie Orvis with Energy Innovation. “It may increase oil and gas production somewhat, but that’s largely offset by all the other pieces of the bill,” Orvis said. However, there is uncertainty about how quickly other pieces of the bill could deliver emissions cuts. Wind and solar construction could face supply chain problems, hampering many economic sectors. And carbon capture and storage technology is still being improved and is in limited use. Other provisions could potentially make it more expensive to drill on public lands and waters. There are modest increases in royalties and rental rates, and a new $5 per acre fee when companies want specific parcels offered for lease. Another fee would require companies to pay for the natural gas, or methane, that enters the atmosphere as a powerful greenhouse gas. Higher costs could dampen interest among companies, said Mark Squillace, a professor of natural resources law at the University of Colorado School of Law. “While the industry is going to get more oil and gas leases if they want it, it’s an interesting question: Do they want it?” Squillace asked. __ Phyllis reported from St. Louis.

On Twitter follow Brown: @MatthewBrownAP and Phillis: @mjphillis

The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental politics. AP is solely responsible for all content. For all of AP’s environmental coverage, visit

title: “The Unlikely Beneficiary Of The Climate Bill The Us Oil And Gas Industry Klmat” ShowToc: true date: “2022-10-31” author: “Aurora Clark”

However, the industry’s setback was short-lived. The climate measure signed by President Joe Biden on Tuesday sidesteps administration concerns about emissions and guarantees new drilling opportunities in the Gulf of Mexico and Alaska. The legislation was created to secure support from a top recipient of oil and gas donations, Democratic Sen. Joe Manchin, and was shaped in part by industry lobbyists. While the deflation law focuses on clean energy incentives that could drastically reduce overall U.S. emissions, it also bolsters oil and gas interests by mandating the leasing of vast tracts of public land and off the nation’s coasts. And it locks renewables and fossil fuels together: If the Biden administration wants solar and wind on public land, it must first offer new oil and gas leases. As a result, U.S. oil and gas production and emissions from burning the fuel could continue to rise, according to some industry analysts and climate experts. As domestic demand declines, that means more fossil fuels are exported to growing foreign markets, including the Gulf, where pollution from oil and gas activity plagues many poor and minority communities. For industry, the new law signals that Democrats are willing to work with them and abandon the idea that fossil fuels could soon become obsolete, said Andrew Gillick with Enverus, an energy analytics firm whose data is used by industry and government agencies. “People who think oil and gas will be gone in 10 years may not be thinking about what that means,” Gillick said. “Both supply and demand will increase over the next decade.” The result would be more planet-warming carbon dioxide — up to 110 million tons (100 million metric tons) a year — from oil and gas produced in the U.S. by 2030, with most of it coming from fuels burned after export , according to some economists and analysts. Others predict smaller increases. The law restores within 30 days the 2,700 square miles (6,950 square kilometers) of Gulf leases that had been withheld. It ensures that companies like Chevron will have a chance to expand and sidesteps U.S. District Judge Rudolph Contreras’ concerns that the government was “going full steam ahead” without adequately looking at global emissions increases. The importance of the measure was underscored by Chevron executives during a recent earnings call, where they predicted continued development in the Gulf and directly linked it to the ability to “lease and acquire additional acreage.” The fossil fuel industry’s ambitions are now tied directly to wind and solar development: The bill prohibits leasing federal lands and waters for renewable energy unless the government has offered at least 2 million acres (810,000 hectares) of public land and 60 million acres (24). million hectares) in federal waters for oil and gas leases during the previous year. The law does not require that leases be sold, only that they be offered for sale. Critics of the measure say it holds renewables hostage unless the fossil fuel industry gets its way. Some accuse Biden and Democrats of abandoning promises to deal with the industry. “That’s another 10 years of mandatory leases,” said Brett Hartl with the Center for Biological Diversity. “We’ll do our best, but it’s hard to fight them all.” Communities near polluting industrial facilities will continue to suffer if the oil and gas industry survives, said Beverly Wright, executive director of the Deep South Center for Environmental Justice and a member of the White House Environmental Justice Advisory Council. He worries that the law’s incentives for technology that sequesters carbon from industrial processes could also perpetuate harm to these poor, mostly minority residents. In the parish of St. James, Louisiana, where petrochemical plants dominate the landscape, environmental justice activist Sharon Lavigne said the legislation would allow fossil fuel pollution to continue to harm her community. “That’s just like saying they’re going to keep poisoning us, they’re going to keep giving us cancer,” said Lavigne, a former high school teacher who founded the group Rising St. James. The lease provisions signal the failure of efforts by environmentalists and social justice advocates to impose a nationwide lease ban. The climax of the movement came when Biden followed through on campaign pledges to end new drilling on federal lands by ordering in his first week in office to suspend lease sales. Republicans have complained that the government still isn’t making enough sales, even after a federal judge blocked Biden’s order. On Wednesday, a federal appeals court threw out an injunction that had blocked the lease suspension, but the impact could be minimal because of the mandates of the new law. A range of potential drilling sites is crucial for companies to maintain future production because wells can take years to develop and some don’t produce anything, said Jim Noe, an industry lobbyist who has worked with its staff Senate on the lease provisions of the climate bill. “The industry has a constant need — almost like a runway — for lease sales,” said Noe, an attorney at Holland & Knight who has represented offshore oil and gas companies. Noe said demand for oil and gas won’t drop immediately, and drilling in the Gulf brings jobs and more energy security. A United Nations report before Biden took office warned that the US and other nations must sharply cut investments in oil, gas and coal to prevent temperatures from rising more than 1.5 degrees Celsius (2.7 degrees Fahrenheit). since the pre-industrial era. Other provisions in the bill that focus on renewable energy and sequestering carbon dioxide from industrial facilities would result in net emissions reductions 10 to 50 times greater than emissions increases from burning more oil and natural gas, analysts say. The increase in oil and gas emissions could still be significant — as much as 77 million to 110 million tons (70 to 100 million metric tons) of extra carbon dioxide annually by 2030 from new leasing, according to economist Brian Perst with the Research Group Resources for the Future. Other experts had lower projections: The San Francisco-based climate research group Energy Innovation predicted up to 55 million tons (50 million metric tons) of extra carbon dioxide a year from new leasing. Researchers from Princeton and Dartmouth said the impact could be negligible or as much as 22 million tons (20 million metric tons) in the U.S., plus much more overseas. Any increase depends on global oil and gas prices holding up – and that in turn depends on a number of factors, including the ongoing war in Ukraine, said Robbie Orvis with Energy Innovation. “It may increase oil and gas production somewhat, but that’s largely offset by all the other pieces of the bill,” Orvis said. However, there is uncertainty about how quickly other pieces of the bill could deliver emissions cuts. Wind and solar construction could face supply chain problems, hampering many economic sectors. And carbon capture and storage technology is still being improved and is in limited use. Other provisions could potentially make it more expensive to drill on public lands and waters. There are modest increases in royalties and rental rates, and a new $5 per acre fee when companies want specific parcels offered for lease. Another fee would require companies to pay for the natural gas, or methane, that enters the atmosphere as a powerful greenhouse gas. Higher costs could dampen interest among companies, said Mark Squillace, a professor of natural resources law at the University of Colorado School of Law. “While the industry is going to get more oil and gas leases if they want it, it’s an interesting question: Do they want it?” Squillace asked. __ Phyllis reported from St. Louis.

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