A report has been issued by the Biden-Harris administration to raise the price of oil leasing charges on federal lands in the country by 50 percent, despite when they had been blaming oil companies for deliberately inflating the prices by illegal and dominative moves.
Biden-harris Administration Suggested the Hike From 12.50 Percent to 18.75 Percent
Even after the record-high gasoline prices are adversely affecting the American households all around the country with winter just around the corner, the Biden-Harris administration is suggesting Congress increase the price of oil leases on government lands from 12.50 percent to 18.75 percent.
The promise that had been made by the Biden administration to reduce the price of gasoline would contradict with the increase rate of 6.25 percentage point royalty on oil companies.
In recent weeks, the Biden-Harris administration has urged OPEC to boost the oil supplies and appealed to the Federal Trade Commission to execute an investigation upon oil companies for “anticompetitive behavior.”
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According to the New York Times, the increased rate would be able to generate an additional amount of nearly “$2.5 billion in new revenue by the end of the decade,” which oil companies would be likely to pay to the federal government, however, the increased cost incurred by the companies would be absorbed by the consumers.
The Biden-Harris administration has already managed to get an additional amount of nearly $1.6 billion so far from oil leases in 2021 in comparison to the last year.
The raised royalty rate would be the first-rate hike in more than 10 decades and would accomplish the promise by President Biden’s campaign that aimed at global warming activists and the far-left.
Clown World: Energy Sec. Doesn’t Know How Many Barrels of Oil U.S. Consumes Per Day pic.twitter.com/ik4yFU50vg
— Breitbart News (@BreitbartNews) November 24, 2021
After the president took office, he frightened American energy freedom since he mandated a short-term bar on oil leases until Friday’s report was released. But when the storm of lawsuits appeared from 13 states, he reversed the mandate, “Shell, BP, Chevron, and Exxon Mobil offered $192 million for the rights to drill” in the Gulf of Mexico.
With the huge tax and spending reconciliation bill that is being attempted to block by Democrat leaders through Congress, the report from the administration runs in parallel with that. Last week, the bill was passed in the House and will most probably even make its way into the Senate, where it possesses a very least probability of passage as mentioned.
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Two Major Senators in Opposition of Many Provisions Included in the Bill
Many provisions that have been included in the bill are being opposed by the top Senator Joe Manchin (D-WV) and Sen. Kyrsten Sinema (D-AZ) which includes an increase in taxes, hits to American energy independence, and welfare provisions.
“We were energy independent one year ago, now we are at the mercy of OPEC.” https://t.co/xchIHYfFdW
— Breitbart News (@BreitbartNews) November 24, 2021
The administration’s suggestion to Congress for increasing the price of oil production is the latest approach in the battle about independence on American energy. President Biden had abolished the Keystone XL Pipeline in January and is also looking into even putting an end to the Michigan Line 5 pipeline.
Biden also joined up to Paris Climate Accords and is organizing an environmental regulatory examination of repairs established by the Trump administration that secured American energy independence.
On Tuesday, Biden investigated the Strategic Petroleum Reserve to reduce prices of gas, even though Vice President Kamala Harris criticized the former President Donald Trump last year for refilling them.
The instant effect as a result of the raid was a hike in oil costs. As a result of the limited capacity on pipelines, the per day production by the United States from the reserve is 4.5 million barrels.
