(Oil Price) – The House Natural Resources Committee is preparing to launch an overhaul of oil and gas drilling legislation in a bid to boost drilling activity on federal lands via a surge in lease sales in key producing regions.
The changes are set to become part of the budget reconciliation bill to be discussed at a hearing later today. After the hearing, the bill will move on to the Senate, where Republicans have a majority. Per Reuters, the budget reconciliation path that the Natural Resources Committee has chosen will secure the bill’s future by avoiding opposition from Democrats.
“The House Committee on Natural Resources is answering President Trump’s call to unleash American energy dominance through commonsense, science-based, and economically sound provisions in budget reconciliation,” the committee said in a memo cited by Reuters.
The same memo detailed the changes envisaged in the bill as involving 30 oil and gas lease sales in the Gulf over the next 15 years plus six offshore lease sales in Alaska and four in the Arctic National Wildlife Refuge over the next ten years. Additionally, the proposal includes National Petroleum Reserve lease sales every other year.
The idea of more oil and gas drilling on federal lands and in federal waters was celebrated by industry associations. The Independent Petroleum Association of America hailed the move, saying it would increase domestic energy supply and bring down prices.
“These provisions, included in the House Natural Resources bill text will increase domestic energy production allowing for affordable and reliable energy to all Americans. Specifically, reinstating quarterly onshore lease sales in key producing states, as required by the Mineral Leasing Act, and establishing firm deadlines for offering eligible land is a welcome and long-overdue step after years of inaction and delay under the Biden administration,” the IPAA and a group of other industry organisations said in a letter sent to the House Speaker earlier this week.
By Charles Kennedy for Oilprice.com
