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    Biden administration moves to restrict oil and gas leases on 13m acres in Alaska

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    The Biden administration said on Friday it will restrict new oil and gas leasing on 13m acres (5.3m hectares) of a federal petroleum reserve in Alaska to help protect wildlife such as caribou and polar bears as the Arctic continues to warm.The decision – part of an ongoing, years-long fight over whether and how to develop the vast oil resources in the state – finalizes protections first proposed last year as the Biden administration prepared to approve the controversial Willow oil project.The approval of Willow drew fury from environmentalists, who said the large oil project violated Biden’s pledge to combat the climate crisis. Friday’s decision also cements an earlier plan that called for closing nearly half the reserve to oil and gas leasing.The rules announced on Friday would place restrictions on future leasing and industrial development in areas designated as special for their wildlife, subsistence or other values and call for the Bureau of Land Management to evaluate regularly whether to designate new special areas or bolster protections in those areas. The agency cited as a rationale the rapidly changing conditions in the Arctic due to the climate crisis, including melting permafrost and changes in plant life and wildlife corridors.Environmentalists were pleased. “This huge, wild place will be able to remain wild,” Ellen Montgomery of Environment America Research & Policy Center said.Jeremy Lieb, an attorney with Earthjustice, said the administration had taken an important step to protect the climate with the latest decision. Earthjustice is involved in litigation currently before a federal appeals court that seeks to overturn the Willow project’s approval. A decision in that case is pending.Earlier this week the Biden administration also finalized a new rule for public land management that is meant to put conservation on more equal footing with oil drilling, grazing and other extractive industries on vast government-owned properties.A group of Republican lawmakers, led by Alaska’s junior senator, Republican Dan Sullivan, commented ahead of Friday’s announcements about drilling limitations in the national petroleum reserve in Alaska even before it was publicly announced. Sullivan called it an “illegal” attack on the state’s economic lifeblood, and predicted lawsuits.“It’s more than a one-two punch to Alaska, because when you take off access to our resources, when you say you cannot drill, you cannot produce, you cannot explore, you cannot move it – this is the energy insecurity that we’re talking about,” Alaska’s senior senator, Republican Lisa Murkowski, said.The decision by the Department of the Interior does not change the terms of existing leases in the reserve or affect currently authorized operations, including the Willow project.The Biden administration also on Friday recommended the rejection of a state corporation’s application related to a proposed 210-mile (338km) road in the north-west part of the state to allow mining of critical mineral deposits, including copper, cobalt, zinc, silver and gold. There are no mining proposals or current mines in the area, however, and the proposed funding model for the Ambler Road project is speculative, the interior department said in a statement.Alaska’s political leaders have long accused the Biden administration of harming the state with decisions limiting the development of oil and gas, minerals and timber.“Joe Biden is fine with our adversaries producing energy and dominating the world’s critical minerals while shutting down our own in America, as long as the far-left radicals he feels are key to his re-election are satisfied,” Sullivan said on Thursday at a Capitol news conference with 10 other Republican senators.skip past newsletter promotionafter newsletter promotionBiden defended his decision regarding the petroleum reserve.Alaska’s “majestic and rugged lands and waters are among the most remarkable and healthy landscapes in the world”, are critical to Alaska Native communities and “demand our protection”, he said in a statement.Nagruk Harcharek, president of Voice of the Arctic Iñupiat, a group whose members include leaders from across much of Alaska’s North Slope region, has been critical of the administration’s approach. The group’s board of directors previously passed a resolution opposing the administration’s plans for the reserve.The petroleum reserve – about 100 miles (161km) west of the Arctic national wildlife refuge – is home to caribou and polar bears and provides habitat for millions of migrating birds. It was set aside about a century ago as an emergency oil source for the US navy, but since the 1970s has been overseen by the interior department. There has been ongoing, longstanding debate over where development should occur.Most existing leases in the petroleum reserve are clustered in an area that is considered to have high development potential, according to the Bureau of Land Management, which falls under the interior department. The development potential in other parts of the reserve is lower, the agency said.The Associated Press contributed reporting More

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      ‘Stop the dirty deal’: activists decry Schumer and Manchin over pipeline plan

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      Climate activists have stepped up protests over the inclusion of a provision to speed up a controversial gas pipeline’s completion in the deal to raise the debt ceiling as Congress prepares to vote on Wednesday, aiming criticism at Democrats Chuck Schumer and Joe Manchin.The pipeline project has long been championed by Manchin, the West Virginia senator who was the top recipient of fossil fuel industry contributions during the 2022 election cycle.Activists, led by the advocacy group Climate Defiance and supported by Food and Water Watch, Climate Families NYC, Center for Popular Democracy, Sunrise Movement NYC and others, rallied outside the Senate majority leader home in Brooklyn’s Park Slope neighborhood on Tuesday evening, chanting “Schumer, stop the dirty deal” and demanding the $6.6bn Mountain Valley Pipeline be stripped from the legislation.Schumer has also received donations from one of the companies behind the pipeline.The protests came hours after nearly 200 groups sent a letter to Schumer and members of Congress remove the pipeline from the deal.“The unscrupulous brinkmanship on display in Washington is endangering our very future,” Eric Weltman, senior New York organizer at the environmental advocacy group Food and Water Watch, said in a statement. “Our climate and communities are not for sale – any deal that holds the economy and climate hostage for the profit of dirty energy donors is a betrayal.”Last year, Manchin failed to make the approval of the pipeline part of the Inflation Reduction Act. But in exchange for his crucial vote for the legislation, he secured a commitment from Schumer to pass a separate bill to expedite the pipeline’s construction and help fast-track the construction of other energy infrastructure. The permitting legislation failed at the hands of Senate Republicans who were unhappy with the compromise.NextEra Energy, one company behind the Mountain Valley pipeline, is a major contributor to Manchin and Schumer. In the 2022 cycle, the company’s employees and political action committees gave $60,000 to Manchin and a stunning $302,000 to Schumer, according to data from the Center for Responsive Politics.Food and Water Watch is also doing daily phone banks and has set up a dedicated hotline to Schumer’s office. Meanwhile, Appalachian Voices is holding three rallies at Senator Mark Warner’s Virginia office pushing for a debt deal that does not include the pipeline.“President Biden made a colossal error in negotiating a deal that sacrifices the climate and working families,” said Jean Su, energy justice program director at the national environmental organization Center for Biological Diversity.House and Senate lawmakers from both parties have also filed amendments to strip the Mountain Valley pipeline from the debt ceiling deal. A group of House Democrats from Virginia have led the push to cut the provision.Democratic senator Tim Kaine plans to file a similar Senate amendment.“Senator Kaine is extremely disappointed by the provision of the bill to greenlight the controversial Mountain Valley pipeline in Virginia, bypassing the normal judicial and administrative review process every other energy project has to go through,” a Kaine spokesperson said in a statement. “This provision is completely unrelated to the debt ceiling matter.”Environmentalists have spent a decade fighting the construction of the $6.6bn Mountain Valley pipeline, which is intended to carry natural gas 300 miles from the Marcellus shale fields in West Virginia to Virginia, crossing nearly 1,000 streams and wetlands. A report from Oil Change International last year found the project would result in the emission of 89m metric tons of planet-heating pollution annually, or the equivalent of building 26 new coal power plants.The pipeline has long faced scrutiny in courts. Since construction began in 2018, the Mountain Valley pipeline has been cited for hundreds of violations in West Virginia and Virginia. Last month, a US court of appeals struck down certain permits for the project on the grounds they would violate the Clean Water Act.The Biden administration has in recent months signed off on several necessary federal permits for the Mountain Valley pipeline. But the debt ceiling legislation would go even further by shielding the project from future litigation.“Singling out the Mountain Valley pipeline for approval in a vote about our nation’s credit limit is an egregious act,” said Peter Anderson, Virginia policy director with Appalachian Voices, an activist group which has fought the project for years.“By attempting to suspend the rules for a pipeline company that has repeatedly polluted communities’ water and flouted the conditions in its permits, the president and Congress would deny basic legal protections, procedural fairness and environmental justice to communities along the pipeline’s path.”Climate groups, led by the Virginia and West Virginia organization Protect Our Water, Heritage, Rights are also planning to rally in front of the White House next week. More

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      Why Biden’s approval of Willow drilling project is ‘a colossal stain’ on his legacy

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      Joe Biden continues to confound on the climate crisis. Hailed as America’s first “climate president”, Biden signed sweeping, landmark legislation to tackle global heating last year and has warned that rising temperatures are an “existential threat to humanity”. And yet, on Monday, his administration decided to approve one of the largest oil drilling projects staged in the US in decades.The green light given to the Willow development on the remote tundra of Alaska’s northern Arctic coast, swatting aside the protests of millions of online petitioners, progressives in Congress and even Al Gore, will have global reverberations.There are more than 600m barrels of oil available to be dislodged by ConocoPhillips over the next 30 years, effectively adding the emissions of the entire country of Belgium, via just one project, to further heat the atmosphere.The scale of Willow is vast, with more than 200 oil wells, several new pipelines, a central processing plant, an airport and a gravel mine set to enable the extraction of oil long beyond the time scientists say that wealthy countries should have kicked the habit, in order to avoid disastrous global heating.Biden’s approval of this is “a colossal and reprehensible stain on his environmental legacy”, according to Raena Garcia, fossil fuels campaigner at Friends of the Earth. Even a group of Biden’s Democratic allies, including Alexandria Ocasio-Cortez, attacked the decision as ignoring “the voices of the people of Nuiqsut, our frontline communities, and the irrefutable science that says we must stop building projects like this to slow the ever more devastating impacts of climate change”.But the approval of the project is consistent with an administration that has approved nearly 100 more oil and gas drilling leases than Donald Trump had at the same point in his presidency, federal data shows. Biden may have promised “no more drilling on federal lands, period” during his presidential campaign, but the reality has been very different – not only have the hydrocarbons continued to flow, they are in a sort of boom, with both oil and gas production forecast to hit record levels year.The White House can point out it is in the middle of a set of confusing, and often contradictory, set of circumstances. Russia’s invasion of Ukraine roiled global energy markets and triggered a push to build new export terminals to ship US oil and gas to European allies, even as Biden toiled to pass $370bn in clean energy spending in the Inflation Reduction Act.Younger, progressive voters have urged the administration to do more on climate – the youth-led Sunrise movement said the Willow decision “abandons millions of young people” ahead of the 2024 election – even as Republicans have continued to hammer Biden for waging a supposed “war” on domestic energy and blamed him for rising gasoline prices.A series of court challenges, and a closely-divided Congress, have also forced Biden’s hand. All members of Alaska’s Congressional delegation, including newly-elected Democrat Mary Peltola, called for Willow to be approved, citing thousands of new jobs. “We all recognize the need for cleaner energy, but there is a major gap between our capability to generate it and our daily needs,” Peltola wrote in an op-ed on Friday with Lisa Murkowski and Dan Sullivan, the Republican senators from Alaska.Biden himself appears to share this view – in his recent state of the union speech, the president said “we’re going to need oil for at least another decade”, before adding “and beyond that”, after boos from some lawmakers. This sort of “rhetorical dualism (is) a call for ‘one last fossil bender before America goes green and sober,’” according to a note by analysts at ClearView Energy Partners on Sunday.Administration officials have stressed that the allowable Willow project is smaller than ConocoPhillips hoped, with three drilling sites allowed instead of the five proposed, and have signaled that the company would’ve likely prevailed in a court challenge if the project was rejected, given it has held leases in the region for more than 20 years.The department of interior has also unveiled proposed rules it has framed as a “firewall” against further drilling, with all of the US’ Arctic Ocean off-limits to future oil and gas exploration, as well as the blocking of leases on more than half of the 23m acre National Petroleum Reserve in Alaska, a vast area of the north slope that contains wildlife considered imperative for the subsistence of local native communities.This conservation action, appropriately announced in a whiplash-inducing way the day before the Willow decision was made public, shows that Biden “continues to deliver on the most aggressive climate agenda in American history”, the department of interior claimed.“Let’s be clear – this project, which the interior department has substantially reduced in size under considerable legal constraints, won’t stop us from achieving the ambitious clean energy goals president Biden has set,” an administration official said on Monday.But critics point out that the brutal reality of Earth’s climate system doesn’t recognize political expediency or future good intentions. The International Energy Agency, among others, has warned that no new oil and gas fields can be developed if the world is to avoid breaching temperature thresholds that scientists say will tip the planet into increasingly dangerous heatwaves, flooding, wildfires and other impacts.For all of the new wind and solar projects spurred by last year’s climate bill, and Biden’s enthusiastic promotion of electric vehicles, Willow is a sobering reality check – the project will wipe out the emissions cuts provided by all renewable energy developments over the next decade, adding the equivalent of 2m new gas-guzzling cars to the roads.“We don’t need to prop up the fossil fuel industry with new, multi-year projects that are a recipe for climate chaos,” as Gore told the Guardian on Friday. “Instead, we must end the expansion of oil, gas and coal and embrace the abundant climate solutions at our fingertips.” More

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      Biden approves controversial Willow oil drilling project in Alaska

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      Biden approves controversial Willow oil drilling project in AlaskaEnvironmentalists and some Alaskan Native communities had opposed the plan over climate, wildlife and food-shortage fearsThe Biden administration has approved a controversial $8bn (£6bn) drilling project on Alaska’s North Slope, which has drawn fierce opposition from environmentalists and some Alaska Native communities, who say it will speed up the climate breakdown and undermine food security.The ConocoPhillips Willow project will be one of the largest of its kind on US soil, involving drilling for oil and gas at three sites for multiple decades on the 23m-acre National Petroleum Reserve which is owned by the federal government and is the largest tract of undisturbed public land in the US.It will produce an estimated 576m barrels of oil over 30 years, with a peak of 180,000 barrels of crude a day. This extraction, which ConocoPhillips has said may, ironically, involve refreezing the rapidly thawing Arctic permafrost to stabilize drilling equipment, would create one of the largest “carbon bombs” on US soil, potentially producing more than twice as many emissions than all renewable energy projects on public lands by 2030 would cut combined.In its decision, the Department of the Interior’s Bureau of Land Management said that the approval “strikes a balance” by allowing ConocoPhillips to use its longstanding leases in the Arctic while also limiting drilling to three sites rather than five, which the company wanted.But the approval has been met with outrage among environmental campaigners and Native representatives who say it fatally undermines Joe Biden’s climate agenda. In all, the project is expected to create about 260m tons of greenhouse gases over its lifespan, the equivalent of creating about 70 new coal-fired power plants.“Approving the Willow Project is an unacceptable departure from President Biden’s promises to the American people on climate and environmental justice,” said Lena Moffitt, executive director of Evergreen Action, a climate group.“After all that this administration has done to advance climate action and environmental justice, it is heartbreaking to see a decision that we know will poison Arctic communities and lock in decades of climate pollution we simply cannot afford.”The approval came as the interior department announced it was going to ban any future oil and gas drilling in the US Arctic Ocean, as well as protect millions of acres of Alaska land deemed sensitive to Native communities. But the Willow decision has still stirred anger.“The Biden administration’s approval makes it clear that its call for climate action and the protection of biodiversity is talk, not action,” said Sonia Ahkivgak, social outreach coordinator at the Sovereign Iñupiat for a Living Arctic group.“The only reasonable solution to the climate emergency is to deny new fossil fuel projects like Willow. Our fight has been long and also it has only begun. We will continue to call for a stop to Willow because the lives of local people and future generations depend on it.”Opposition to the project has included more than a million letters sent to the White House, a Change.org petition with more than 3 million signatories, and a viral #stopwillow campaign waged on TikTok as well as other social media. The approval of the project is almost certain to face legal challenges.On Friday, former US vice-president Al Gore told the Guardian that projects of its kind are “recklessly irresponsible” and that allowing it would cause “climate chaos”.The approval comes after an environmental impact assessment was published last month by the US interior department, which recommended a scaled-back version of the project, reducing the number of sites from five to three, which ConocoPhillips Alaska said it considered a viable option.“Willow is a carbon bomb that cannot be allowed to explode in the Arctic,” Karlin Nageak Itchoak, the senior regional director at the non-profit Wilderness Society, said after the assessment was published in early February.According to the Native Movement, a grassroots Alaska-based collective, Willow developers have done little research on the impact of the cumulative projects across the Arctic slope of Alaska – the birthing grounds of the 60,000 Teshekpuk Lake caribou herd, which are a historically important food source. Residents of Nuiqsut, the closest Alaska Native community, have spoken out about sick fish, malnourished caribou and toxic air quality, directly caused by existing oil and gas extraction within their homelands.Approval has come after a long contentious process.After the project was given the green light by the Trump White House, a federal judge reversed that decision, ruling that an earlier environmental review was flawed.Alongside the interior department’s February review, officials expressed “substantial concerns” about even the scaled-back plan’s impact on wildlife and Native communities.Alaska’s two Republican senators and the state’s sole congressional representative, a Democrat, had urged the administration to approve the project, which they say would boost the state’s economy.Some Alaska Native tribal organizations, including the Inupiat Community of the Arctic Slope and the Alaska Federation of Natives, have supported the project for similar reasons.The deal will make it “possible for our community to continue our traditions, while strengthening the economic foundation of our region for decades to come,” according to Nagruk Harcharek, president of the Voice of the Arctic Iñupiat group.But environmental groups and tribes including those in Nuiqsut have countered that any jobs and money the project brings in the short term will be negated by the environmental devastation in the long run.Alaska is at the forefront of the climate breakdown, caused by burning fossil fuels, and communities surrounded by oil and gas operations are already suffering poor air and water quality, health disparities and reduced food sources. The Nuiqsut mayor, Rosemary Ahtuangaruak, whose community of about 525 people is the closest to the proposed development, is a prominent opponent, who has called the project a “climate disaster waiting to happen”. She said it will negatively affect the livelihoods and health of community members.Biden suspended oil and gas lease sales after taking office and promised to overhaul the government’s fossil fuels program. However, the administration dropped its resistance to leasing in a compromise over last year’s climate law.The administration’s continued embrace of oil and gas drilling has caused consternation among Democrats, with two dozen progressive members of Congress recently writing to Biden, warning that the Willow project will “pose a significant threat to US progress on climate issues”. The group called upon the president to block an “ill-conceived and misguided project”.The Biden administration has offered less acreage for lease than previous administrations. But environmentalists say the administration has not done enough. The US interior secretary, Deb Haaland, in a recent interview declined direct comment on Willow but said that “public lands belong to every single American, not just one industry”.Increased oil and gas extraction in the Alaska region has already affected caribou populations, which several communities in the area hunt for subsistence.The Associated Press contributed reportingTopicsAlaskaEnergyOilOil and gas companiesUS politicsnewsReuse this content More

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      Biden denies reports that Alaska oil drilling project has been approved

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      Biden denies reports that Alaska oil drilling project has been approvedSigning off on the Willow plan would place the president’s political career in conflict with climate-minded DemocratsThe Biden administration has denied reports that it has authorized a key oil drilling project on Alaska’s north slope, a highly contentious project that environmentalists argue would damage a pristine wilderness and gut White House commitments to combat climate crisis.Late Friday, Bloomberg was first to report citing anonymous sources that senior Biden advisers had signed off on the project and formal approval would be made public by the Interior Department next week.The decision to authorize drilling on the north slope, if correct, would amount to one of the most symbolically important climate decisions of Biden’s political career and place his administration in conflict with the climate-alert left wing of the Democratic party.But that pressure is countered by unions and some Indigenous communities in Alaska who say approval of the project would provide economic security in the state beyond the borders of the 9.3m-hectare (23m acres) area of the north slope that is considered the largest tract of undisturbed public land in the US.But after reports were published, White House press secretary Karine Jean-Pierre said “no final decisions have been made” on the project and “anyone who says there has been a final decision is wrong”.Earlier on Friday, former vice-president Al Gore said it would be “recklessly irresponsible” to allow the project to proceed. “The pollution it would generate will not only put Alaska native and other local communities at risk, it is incompatible with the ambition we need to achieve a net zero future,” he said.Alaska senator Lisa Murkowski said on Friday that a decision was “imminent”. The Republican senator previously called the size of the project “minuscule” and that it has been “meticulously planned” to avoid harm to the environment.Biden has come under intense pressure from lawmakers and the courts, and high energy prices that have dogged his first term as president after he vowed “no more drilling on federal lands, period” during his campaign.But White House policy to oppose new oil leases and discourage domestic shale-oil drilling, has also forced its hand in other areas. Biden’s visit to Saudi Arabia last year to urge increases in Saudi production came at a high political cost and was broadly fruitless.White House approval of “the Willow Master Development Plan”, a multi-billion ConocoPhillips project to drill oil inside the National Petroleum Reserve in Alaska would serve as a substantial win for the oil-and-gas industries.ConocoPhillips has said the Willow plan could provide more than $17bn in revenue for federal, state and local governments and create over 2,800 jobs. It could suck an estimated 600m barrels of oil from beneath the permafrost and, at a projected 180,000 daily barrels of oil, would produce approximately 1.6% of current US production.Under those figures, the project would also contribute 280m tons of carbon dioxide emissions to the atmosphere when the oil was processed and used across fossil-fuel dependent economy.Unlike other, small oil and gas leases approved by the White House it would also be one that Biden approves without the force of court or congressional orders.The oil giant, which reported profits of $18.7bn in 2022, double the previous year, originally requested permits to drill on five locations but later scaled back to three.ConocoPhillips has said it cannot comment on the decision until it has a formal record.The Interior Department has previously said it has “substantial concerns” about the Willow project’s impact upon the climate and the subsistence lifestyle of native Alaskan communities – but has completed an environmental review of the development that it said would improve it.A wave of opposition to the Willow project has included rallies in Washington DC and an online #StopWillow campaign that has garnered more than 3m signatures.Siqiniq Maupin with the Sovereign Iñupiat for a Living Arctic has warned that the project would threaten subsistence lifestyle of native communities that rely upon the migration of caribou.“President Biden continues to address climate change during high-profile speeches and events but his actions are contradictory,” Maupin said.TopicsBiden administrationAlaskaOilClimate crisisIndigenous peoplesUS politicsnewsReuse this content More

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      Why Do You Need to Know About Mohammad Mosaddegh?

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      The Fair Observer website uses digital cookies so it can collect statistics on how many visitors come to the site, what content is viewed and for how long, and the general location of the computer network of the visitor. These statistics are collected and processed using the Google Analytics service. Fair Observer uses these aggregate statistics from website visits to help improve the content of the website and to provide regular reports to our current and future donors and funding organizations. The type of digital cookie information collected during your visit and any derived data cannot be used or combined with other information to personally identify you. Fair Observer does not use personal data collected from its website for advertising purposes or to market to you.As a convenience to you, Fair Observer provides buttons that link to popular social media sites, called social sharing buttons, to help you share Fair Observer content and your comments and opinions about it on these social media sites. These social sharing buttons are provided by and are part of these social media sites. They may collect and use personal data as described in their respective policies. Fair Observer does not receive personal data from your use of these social sharing buttons. It is not necessary that you use these buttons to read Fair Observer content or to share on social media. More

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      Joe Biden is right: America needs a windfall profits tax on Big Oil | Robert Weissman

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      Joe Biden is right: America needs a windfall profits tax on big oilRobert WeissmanThe case for a windfall profits tax is straightforward. There’s a reason why the idea is so popular Consumers are paying as big oil has gobbled up more than $125bn in profits in 2022 – triple the total from last year – doing nothing other than watching world oil prices soar due to Russia’s invasion of Ukraine.The solution to this heist is simple enough: a windfall profits tax that extracts big oil’s unjust enrichment and returns the money to the people.Outraged by big oil’s greed, President Biden was right to call for a windfall profits tax – but wrong to encourage more oil production as an alternative.The Guardian view on Shell’s profits: enabling climate and inequality emergencies | EditorialRead moreThe case for a windfall profits tax is straightforward. The cost of getting oil out of the ground remains the same. Still, the market price of oil has skyrocketed due to Russia’s invasion of Ukraine. For the integrated major oil corporations, that means they have been able to charge consumers far more, despite their costs remaining flat.Whether you think the companies doing that are displaying unmitigated greed or just following the rules of the market, there’s no question that they are reaping windfall profits – and doing so at consumers’ expense. A windfall profits tax, with the revenue fully rebated to taxpayers, would offset the pain at the pump and limit big oil’s egregious rip-offs.There’s nothing revolutionary about this. Although the implementation has been uneven, a number of European countries have already put windfall profits taxes in place and others are lined up to do so. UN Secretary General António Guterres has called for such a tax. Even Shell’s CEO, Ben van Beurden, acknowledges that it makes sense for governments to tap the industry to aid struggling consumers.Not surprisingly, the American people overwhelmingly support the idea. They know they are being ripped off, they know it hurts and they’d like something done about it.All of this is deeply felt. It’s not just that, in a car-dependent society, many people have little choice about driving and fueling their cars. It’s that nothing in America is as clearly labeled as the price of a gallon of gasoline. We post it on signs outside filling stations, project it from towers along our highways and have built software to ensure people know where they can find the best price in town.It’s also that big oil’s profits are so eye-popping: $19.7bn for Exxon in just the third quarter of the year. More than $11bn for Chevron. $9.5bn for Shell and $8.2bn for BP. In a time of significant inflation, all of this stings.The main arguments against taxing big oil’s enormous profits are easily refuted. Some highlight design difficulties of a windfall profits tax, but there are a number of possible alternatives that would do the job. Others argue it would raise prices for consumers, but a tax on excess profits will not affect consumer prices at all – except perhaps to bring them down. And others say, just let supply and demand work itself out – but that’s just a way to rationalize big oil’s windfall profits.The only genuine argument against a windfall profits tax is that big oil has so much political power that it would never let such a thing come to pass. That, of course, is not a merits argument. It also overstates big oil’s political invulnerability – if a windfall profits tax gains momentum, given its popularity and simplicity, it will be increasingly hard for big oil’s political allies to stop it.That’s why it was a major breakthrough on Monday when President Biden lent his support to such a tax. Unfortunately, Biden linked the call for a windfall tax to a demand that big oil companies increase production.That’s a wrong turn. Drilling more will not lower prices for US consumers. More oil from US lands will just be exported – as 29% of US crude production now is, thanks to the 2015 elimination of a crude oil export ban – and will not affect the global price of oil.Worse, more investment in oil drilling will deepen our dependence on fossil fuels when the worsening climate catastrophe demands we speed the transition away from fossil fuels. The global energy disruption caused by the Russian invasion absolutely requires short-term and makeshift responses to address supply and price challenges. But the only sane long-term response is to accelerate the move to clean energy.Americans know they are being ripped off by big oil profiteering and they want a direct solution. A windfall profits tax on big oil is exactly that.
      Robert Weissman is the president of Public Citizen
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      The GCC Now Prefers Russia to the West

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      The Fair Observer website uses digital cookies so it can collect statistics on how many visitors come to the site, what content is viewed and for how long, and the general location of the computer network of the visitor. These statistics are collected and processed using the Google Analytics service. Fair Observer uses these aggregate statistics from website visits to help improve the content of the website and to provide regular reports to our current and future donors and funding organizations. The type of digital cookie information collected during your visit and any derived data cannot be used or combined with other information to personally identify you. Fair Observer does not use personal data collected from its website for advertising purposes or to market to you.As a convenience to you, Fair Observer provides buttons that link to popular social media sites, called social sharing buttons, to help you share Fair Observer content and your comments and opinions about it on these social media sites. These social sharing buttons are provided by and are part of these social media sites. They may collect and use personal data as described in their respective policies. Fair Observer does not receive personal data from your use of these social sharing buttons. It is not necessary that you use these buttons to read Fair Observer content or to share on social media. More

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      Biden implores US oil companies to pass on record profits to consumers

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      Biden implores US oil companies to pass on record profits to consumersPresident announces release of 15m barrels of oil from strategic reserve as he fights to keep gas prices in check before midterms Joe Biden has called on oil companies to pass on their massive profits to consumers as he announced the release of 15m barrels of oil from the US strategic petroleum reserve.Biden is fighting to keep gas prices in check ahead of November’s midterms. He blamed Vladimir Putin’s invasion of Ukraine for the global spike in oil prices and said his administration was doing all it could to keep prices in check.“Gas prices have fallen every day in the last week,” said Biden. “That’s progress, but they’re not falling fast enough. Gas prices are felt in almost every family in this country. That’s why I’ve been doing everything in my power to reduce gas prices.”He called on US oil companies to help. In the second quarter of 2022, the six largest US oil companies reported profits of $70bn, said Biden.“So far, American oil companies are using that windfall to buy back their own stock, passing that money on to shareholders, not consumers,” he said. “My message to all companies is this: you’re sitting on record profits. And we’re giving you more certainty. You can act now to increase oil production. You should not be using your profits to buy back stock or for dividends – not while the war is raging.”The announcement of the latest oil release speeds up the sale of the last of the 180m barrels that Biden announced in March would be sold. The announcement comes after the oil-producing Opec+ nations said they would cut oil production, driving up prices, in a move that angered White House officials.Established in 1975 to help mitigate shocks in US oil supply, the strategic petroleum reserve (SPR) is thought to be the largest emergency supply in the world. Stored in underground tanks in Louisiana and Texas, the SPR has capacity for 714m barrels of oil and is currently at its lowest level since 1984.The reserve now contains roughly 400m barrels of oil and Biden said more oil could be released if the situation does not improve. The administration has called the situation a “bridge” until domestic production can be increased and said the US will restock the strategic reserve when oil prices are at or lower than $67 to $72 a barrel.Biden faces political headwinds because of gas prices. AAA reports that gas is averaging $3.87 a gallon, down slightly over the past week, but up from a month ago. The recent increase in prices stalled the momentum that the president and his fellow Democrats had been seeing in the polls ahead of the November elections.An analysis Monday by ClearView Energy Partners, an independent energy research firm in Washington, suggested that two states that could decide control of the evenly split Senate, Nevada and Pennsylvania, are sensitive to energy prices. The analysis noted that gas prices over the past month rose above the national average in 18 states, which are home to 29 potentially “at risk” House seats.The hard math for Biden is that oil production has yet to return to its pre-pandemic level of roughly 13m barrels a day. It’s about a million barrels a day shy of that level. The 15m-barrel release would not cover even one full day’s use of oil in the US, according to the Energy Information Administration.The oil industry would like the administration to open up more federal lands for drilling, approve pipeline construction and reverse its recent changes to raise corporate taxes. The administration counters that the oil industry is sitting on thousands of unused federal leases and says new permits would take years to produce oil with no impact on current gas prices.Environmental groups, meanwhile, have asked Biden to keep a campaign promise to block new drilling on federal lands.Because fossil fuels lead to carbon emissions, Biden has sought to move away from them entirely with a commitment to zero emissions by 2050. When discussing that commitment nearly a year ago after the G20 leading rich and developing nations met in Rome, the president said he still wanted to also lower gas prices because at “$3.35 a gallon, it has a profound impact on working-class families just to get back and forth to work”.The Associated Press contributed to this storyTopicsJoe BidenBiden administrationOilOpecCommoditiesUS midterm elections 2022US politicsnewsReuse this content More