Utah, other fossil fuel states await changes under a second Trump administration
When Joe Biden's took office as U.S. president, he delivered on his promises when it comes to fossil fuels.
The fossil fuel energy sector was not pleased.
On Day 1, Biden via executive order canceled construction of the Keystone XL pipeline when he revoked a permit that would have allowed a pipeline to carry oil from Canada, ultimately reaching the Gulf Coast.
Why was it wanted? An increased supply of oil from Canada would mean a decreased dependency on Middle Eastern supplies. According to market principles, increased availability of oil means lower prices for consumers.
Trump, while in office, had said the project would create 28,000 construction jobs.
Environmental groups and Native American tribes had long been opposed to Keystone.
Punishing energy?
That same month, Biden issued an executive order announcing a moratorium on new oil and gas leases on public lands or in offshore waters, reconsideration of federal oil and gas permitting and leasing practices and also directed agencies to eliminate federal fossil fuel "subsidies" wherever possible.
In addition, the Biden administration not only went after on-the-ground or on-the-water access but went after pocketbooks of companies and investors. The Department of Labor issued a final ESG Rule that would require fiduciaries to consider the economic effects of climate change and other environmental, social and governance factors when evaluating funds for retirement plans.
The industry says the suffering, or proof of it, is in the numbers.
Here is a snapshot of the number of new leases on public lands and waters issued under three different presidential administrations in these fiscal years:
During the entirety of the Biden administration, the BLM offered 15 lease parcels of 27,615 acres in Utah. Of those, four sold, making up 7,571 acres, said Kathleen Sgamma, president of the Western Energy Alliance.
In terms of actual acreage issued for potential leasing, the data under varying presidential administrations shows this:
"The Biden administration tried to stop leasing from Day 1. They have been offering anemic leases sales — offering as a few lease sales as possible and we really have not seen the effects of that yet," Sgamma said in an earlier interview. "What we are seeing are the effects of Trump."
Alex Stevens, manager of policy and communications for the American Energy Alliance, echoed that sentiment.
"The surge in U.S. energy production over the past decade can largely be credited to American energy producers, who have achieved remarkable gains in productivity," he said.
"The policies enacted during President Trump's first term played a crucial role in this growth and innovation. By reducing regulatory burdens, his administration allowed energy companies to focus on production and innovation rather than navigating an endless stream of rules from Washington bureaucrats. In contrast, the Biden-Harris administration has been far more aggressive than even the Obama administration in undermining domestic oil and gas production," the alliance said. "The Biden administration, along with congressional Democrats, took over 250 actions to restrict oil and gas production, so it's difficult to credit the current administration for the continued growth of American energy production. In FY23, the Biden-Harris administration issued 93% fewer leases than the Obama administration did in FY09."
Stevens says he sees a Trump administration righting the ship, but will take quite some time to get back on course of transforming energy policies.
"I believe opening up the permitting process on federal lands will be a priority on Day 1. A new secretary (of interior) can begin leasing as soon as the nomination process is underway. While organizing a lease auction would require some preparation, it could be implemented relatively quickly. However, fully undoing the damage to federal oil and gas development will take more time, as rebuilding the trust necessary to attract investment on federal lands will be a gradual process."
And the federal government's posture has not been isolated in the oil and gas arena. The permit for a highway in St. George was subsequently withdrawn for another look at the environmental impacts, and leasing for geothermal projects has either been delayed or stagnant in Utah. Pipelines are difficult to get through the permitting process for conveying natural gas.
The Bureau of Land Management on Thursday announced the completion of the environmental review and a settled on a preferred route. An official record of decision will be announced within 30 days.
Although political control of the House remains up for grabs amid some very tight races as of Thursday afternoon, in a previous event organized by the Utah Petroleum Association , panelists optimistically talked of what kind of shift would happen under a unified Republican-led government.
Anne Bradbury, president and chief executive officer of AXPC , or the American Exploration and Production Council, said producers would enjoy some regulatory relief via EPA rules, the BLM and scrapping the pause on certain LNG exports.
In addition, there would also be the possibility of a repeal of the methane tax and the elimination of late Biden ushered rules, she said. But just as industry and some states have pushed back against Biden and his administration through litigation, this scenario would jump-start lawsuits filed by nongovernmental organizations.
The Center for Biological Diversity, as an example, noted it had filed 266 lawsuits against the Trump administration.
The group noted in a social posting on X this week that the fight will resume.
