U.S. oil and gas industry the unlikely beneficiary of landmark climate bill

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While the Inflation Reduction Act concentrates on clean energy incentives that could drastically reduce overall U.S. emissions, it also buoys oil and gas interests by mandating leasing of vast areas of public lands and off the nation’s coasts

. And it locks renewables and fossil fuels together: If the Biden administration wants solar and wind on public lands, it must offer new oil and gas leases first.

The result would be more planet-warming carbon dioxide – up to 110 million tons annually – from U.S.-produced oil and gas by 2030, with most coming from fuel burned after export, according to some economists and analysts. Others predict smaller increases. The measure’s critics say that’s holding renewables hostage unless the fossil fuel industry gets its way. Some accuse Biden and Democrats of abandoning pledges to confront the industry.

“That’s just like saying they’re going to continue to poison us, going to continue to cause us cancer,” said Lavigne, a former high school teacher who founded the group Rising St. James. “The industry is in constant need – almost like a treadmill – of lease sales,” said Noe, an attorney at Holland & Knight who represented offshore oil and gas companies. Noe said demand for oil and gas won’t decline immediately and Gulf drilling brings jobs and more energy security.

Other experts had lower projections: The San Francisco-based climate research group Energy Innovation predicted up to 55 million tons of additional carbon dioxide annually from new leasing. Researchers from Princeton and Dartmouth said the impact could be negligible or as much as 22 million tons in the U.S., plus much more abroad.

 

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