Recent reports have shown that the Biden/Harris administration attempted to increase the cost of oil lease fees on federal land in America by 50% while simultaneously accusing oil firms of raising prices by using anti-competitive practices. American families are suffering from record-high gasoline prices. The Biden-Harris administration suggests that Congress raise the cost of oil leases on federal land. They would like it to rise from 12.50% up to 18.75%.
The administration promised lower gas prices but was rebuffed with a 6.25 percent royalty rate increase on oil companies. They also requested that OPEC increase oil supplies. They also requested the Federal Trade Commission investigate anticompetitive behavior by oil companies.
According to reports, the rate hike would generate an additional $2.5 billion in revenues by the end of the decade. Oil companies would then pay the government. The higher costs incurred by the companies would be borne by the consumers. An increase in the royalty rate would be the first-rate hike since 1920, fulfilling Biden’s campaign promise for global warming activists.
Biden threatened America’s energy independence and imposed a temporary ban on oil leases. Shell, BP, and Chevron offered $192M for drilling in the Gulf of Mexico. The administration’s report coincides perfectly with the massive tax and spending reconciliation package Dem leaders want to push through Congress. It is likely to make it to the Senate, where it has very little chance of passing.
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Sen. Kyrsten Sinema and Joe Manchin voted against many provisions, including tax increases as well as threats to U.S. energy independence.
Biden in January canceled the Keystone XL Pipeline and is now looking at the possibility of canceling the Michigan Line 5 Pipeline. He also joined the Paris Climate Accords and is currently reviewing the environmental impact of Trump’s repairs to American energy independence.
Biden raided the Strategic Petroleum Reserve in an attempt to lower gas prices. Due to its limited pipeline capacity, the U.S. produces approximately 4.5 million barrels daily.