State’s fossil fuel industry hopes to work with president
A key official within the state’s energy industry said he is encouraged by the Biden administration’s yearlong moratorium on new oil and gas leases on federal lands, which he contends is better than the U.S. Interior Department’s halt on leases announced last week.
The moratorium was among several executive orders President Joe Biden issued Wednesday (Jan. 27) to combat climate change. Tackling the global crisis while creating new jobs was one of Biden’s foremost campaign promises.
Biden’s executive order, which freezes new federal leases, also directs the Interior Department to conduct a rigorous review of existing oil and gas leases while looking for ways to double offshore windproduced energy by 2030.
Ryan Flynn, executive director of the New Mexico Oil & Gas Association,
said the president’s order leaves room for the industry to find middle ground with the administration in the coming year.
“I think we can work through that,” he said.
The order solidifies and extends the Interior Department’s 60-day pause on new federal leases for oil, gas and mineral extraction.
Although the department’s order stated no existing operations would be affected, Flynn contends the language was so broad that it could have curtailed new work on current operations.
For instance, it could have prevented crews from installing pipes and equipment to capture methane from wells, Flynn said. That would defeat the intent to reduce greenhouse gas emissions, he added.
Flynn said he hopes the White House will pursue its goals of curbing greenhouse gases – which he supports – while guiding federal agencies not to overstep.
“If they can strike that balance then that will help ensure there’s not unnecessary damage on the industry in New Mexico,” Flynn said.
The state’s industry can live with no new federal leases for the time being, Flynn said.
Halting new leases now amid the pandemic will have much less impact than even a year ago when demand was sky-high and billiondollar contracts would’ve been lost, Flynn said.
But freshman Republican U.S. Rep. Yvette Herrell, whose 2nd Congressional District includes
New Mexico’s portion of the Permian Basin, doesn’t share Flynn’s optimism.
Herrell said the president’s actions were hasty and could have dire consequences for state coffers and local communities given the industry’s role in New Mexico’s economy.
Herrell sent a letter this week to Gov. Michelle Lujan Grisham, asking that she join with her to protect jobs and the state’s interests. She noted that one-third of New Mexico’s budget relies on oil and gas revenues, with more than $1 billion going toward public education.
“While other members of our congressional delegation have been reluctant to speak out against the president’s actions, I hope you will join me in urging President Biden to reconsider any moratorium on new oil and gas leases in New Mexico,” Herrell wrote.
In a statement released
Wednesday, Lujan Grisham said state agencies will continue to analyze “the full impact” of actions outlined by the Biden administration.
“Our administration is reviewing these orders to evaluate the scope of the impact they will have on our state and continue to be in close conversation with leaders in the industry,” she said.
Flynn said he supports improved conservation within the industry, whether it’s recycling water or better-capturing methane as outlined in the governor’s climate plan.
But curtailing pollution does not have to come at the expense of the state’s key industry, he said.
“It’s not like a transition away from oil and gas products is going to occur in a week or year or even in the next 10 years,” Flynn said.