US Republicans Oppose Biden's Halt on Oil Drilling... Introduce 'Energy Protection Act'

"Federal Land Is Not Biden's"
Concerns Over Additional Measures Like Corporate Tax Hikes and Pipeline Closures

[Image source=Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The U.S. Republican Party has introduced a bill in Congress to block President Joe Biden's executive order to halt new oil and gas drilling on federally owned lands, one of the core pledges of his climate change policy. In preparation, U.S. petrochemical companies secured numerous drilling rights toward the end of the Donald Trump administration, so there is no immediate significant impact. However, they are concerned that if the Biden administration implements additional measures such as corporate tax hikes or pipeline closures, substantial losses will be inevitable.

According to foreign media including U.S. ABC News, on the 28th (local time), Louisiana Senator Bill Cassidy, a Republican, along with 24 other Republican senators, introduced the "2021 Energy Resources Protection Act" to Congress. This bill is known to be aimed at blocking the executive order signed earlier by President Biden that halts new oil and gas drilling on U.S. federally owned lands and coastal areas.

In a statement that day, Senator Cassidy emphasized the necessity of the Energy Protection Act, saying, "Federally owned lands do not belong to President Biden but to the American people," and "There needs to be safeguards so that no president can unilaterally block U.S. energy production or halt the jobs of countless workers."

Since President Biden pledged during the November presidential election last year to halt drilling on federally owned lands, the Republican side has strongly opposed the move. According to CNN, the Republican Party, which receives massive lobbying from U.S. shale gas and petrochemical companies, has opposed Biden's climate change policies. Toward the end of the Trump administration, when drilling rights applications from oil companies surged, auctions were urgently conducted. After the election, President Trump allowed oil drilling rights in the Arctic National Wildlife Refuge (ANWR) in Alaska during his remaining term and auctioned them off, sparking opposition from U.S. environmental groups.

According to CNBC, the scale of drilling and mining by U.S. petrochemical companies within the U.S. accounts for only about 10% of the drilling scale in other regions, so it is estimated that there will be no immediate significant impact on sales or profits. However, CNBC reported that if the Biden administration takes additional measures such as raising corporate taxes, introducing environmental taxes, or closing pipelines, losses could gradually increase.

This content was produced with the assistance of AI translation services.