Press Release From IADC: Federal Leasing Ban Impedes US Economic Growth

Houston (27 January 2021) – Today the Biden Administration announced executive action that will restrict oil and natural gas leasing on federal lands and in federal waters. In response, IADC President Jason McFarland issued the following statement:

“The executive actions announced by the Administration today only serve to further curtail the ability of America’s natural gas and oil producers to successfully operate. Formulated with zero consultation from the industry members best positioned to assist the Administration in achieving its goals, these policies threaten thousands of good-paying energy jobs and jeopardize hundreds of millions of dollars in future royalty-based revenue that the industry creates for states and local communities.

Additionally, the indefinite nature of these actions hinders the proper planning and due diligence required to continue to safely and efficiently deliver energy to Americans everywhere.

With the number of active U.S. drilling rigs down 53% from pre-pandemic levels, over 415 rigs are currently offline. Each of these rigs would otherwise provide thousands of well-paying jobs to communities along our nation’s coasts and in the heartland.

The Administration claims that these policy developments are well-timed job creation efforts aimed at revitalizing a stagnant economy and increasing environmental stewardship. In fact, these actions come at a time in which America’s energy businesses are only just beginning to rebound from the economic shock of a global pandemic and commodity price war, and have the potential to severely hamper recovery as we move forward.”

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