Biden complicates Trump's energy push
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Here's one thing Donald Trump needs to scrap restrictions on U.S. drilling and exports: plenty of lawyers.
Why it matters: Some of President Biden's policy moves could place time-consuming bureaucratic and legal hurdles before Trump officials who would need to formally unwind them.
Driving the news: The Interior Department on Monday announced final plans for leasing in the Arctic National Wildlife Refuge — a mandate under Trump's 2017 tax law.
- It scheduled a Jan. 9 sale and released a formal "record of decision" on leasing parameters.
- Biden opposes drilling there. The sale offers the minimum acreage legally required (400,000) and has various environmental guardrails.
What they're saying: "The Biden administration continues to impede the development of oil and natural gas resources on federal lands despite clear economic and energy security benefits," American Petroleum Institute spokesman Scott Lauermann said in a statement.
State of play: Environmentalists oppose any ANWR leasing, including Biden's plan, calling it incompatible with protecting the fragile region.
- But Andy Moderow of the Alaska Wilderness League also noted polar bear and caribou restrictions, among others, in Interior's ROD — and said Trump can't just discard the decision.
- "[T]he department can't simply change direction and ignore such findings in the ROD on a political whim," he noted via email, vowing the group will "scrutinize any and all attempts they make to cut corners to expedite drilling."
Meanwhile, the looming DOE study on LNG could make it tougher for Trump's team to quickly start granting export licenses again.
- Trump and Republicans want to scrap the study and offer new permits — but that may bring legal risk if it contradicts the study's findings, Axios Pro's Daniel Moore wrote recently.
- Wood Mackenzie's Ed Crooks makes a similar point in a new column.
- The study could delay Trump's intent to approve pending applications by "anywhere from several months to several calendar quarters to revise or revisit study results," ClearView Energy Partners said in a note.
Reality check: Turning back to ANWR, the government can't force companies to drill, despite what could be massive deposits.
- A 2021 sale just before Trump's term ended drew tepid interest amid policy uncertainty, opportunities elsewhere, and environmental pressure on companies.
- No development followed — Biden ordered a review and suspended activities.
- Companies gave up two leases and Interior canceled nine others.
But Alaska Gov. Mike Dunleavy argues future leasing under Trump "would face a different reception — with the prospect of support from Washington providing tailwinds for would-be developers," Bloomberg summarizes.
The bottom line: ANWR and LNG highlight a bigger picture.
- Executive orders ending Biden's policies will quickly flow, but for some, there could be a long goodbye.
