Feb 11, 2021 - Energy & Environment

IEA says Biden's early oil moves have limited near-term impact

Illustration of pins poking an oil barrel

Illustration: Rebecca Zisser/Axios 

The effects of President Biden's restrictions on oil-and-gas leasing and permitting on federal lands and waters will be limited in the near term, the International Energy Agency said Thursday.

Driving the news: IEA's monthly oil market report says it doesn't see a "material impact on U.S. production in the short term."

  • "Operators onshore and offshore have built up a large inventory of leases on federal acreage (partly in anticipation of the change) as well as inventories of drilled but uncompleted wells (DUCs) that will allow them to sustain current rates of activity for several years," it notes.

Why it matters: The leasing freeze and temporary permitting restrictions have been among the highest-profile energy moves of the new administration.

  • They're drawing heavy pushback from the industry, Republicans and some oil-state Democrats.
  • About a quarter of U.S. oil production comes from federal lands and waters.

Yes, but: The policies are causing significant concern in New Mexico, where lots of the state's production is centered on federal lands.

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