May 16, 2022

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The US oil lobby wants more permits after the invasion of Ukraine

The US oil lobby wants more permits after the invasion of Ukraine

Wednesday, February 24, a day before the start of the invasion of Ukraine, The Lobby Association of American Oil and Gas Companies tweeted. The tweets call for American ‘energy leadership’. To this end, it is important for the country to approve government energy projects, launch maritime projects over the next five years, expedite pipeline approvals and clarify oil and gas drilling rules.

Keystone XL

That demands a lot. Although Twitter is not like the corridors of the White House, the New York Times sees a clear movement in the industry. According to the American Petroleum Industry (API), uncertainty about gas from Russia calls for more drilling in our own soil. Politicians follow this. An Alaskan Republican senator has called for the Keystone XL pipeline to be reopened, but a White House spokesman has refused. “Reduce foreign oil and oil dependence in general.”

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The United States is the world’s largest oil producer; They produced 11 billion barrels per day by 2020Russia is second and Saudi Arabia is third. The United States ranks first in gas production and Russia second. In the United States, it’s mostly about shale gas, which you ‘extract’ from the ground by ‘cracking’ the soil. In Russia, this is somewhat about natural gas fields.

LNG for Europe?

So America has been a key player for a long time. Now that there is uncertainty over Russia’s gas supply to Europe, US gas imports (in liquid form, LNG) can provide a solution. For this, it is possible to increase production in the United States, although it is complicated: profits are only possible if gas prices are high, but those prices will fall if more gas is available.

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U.S. environmental groups do not think over-drilling is the answer. They see the instability of the fossil system as a result of a crisis at high energy prices. “People talk about how reliable oil and gas are. But every time there is a big storm, when a war breaks out, credibility is at stake. There is no war on solar energy,” Nathaniel, founder of the Environmental Voter Project, told the Times.