Energy Report: A Moratorium On The Drilling Moratorium

A loss for the Biden administration but a big win for common sense. That’s what happened when a judge threw out the Biden administration's ill-conceived drilling moratorium for oil and gas on federal lands. The Wall Street Journal reported that a federal judge in Louisiana issued a preliminary injunction blocking the Biden administration from pausing new oil-gas leases on federal land. Judge Terry A. Doughty of the US District Court in Monroe said that the administration does not have the legal right to stop leasing federal territory for oil and gas production without approval from Congress.

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Image Source: Unsplash

Darn! It's that separation of power thing again. It always seems to get in the way of Biden’s agenda and his record-breaking laundry list of executive orders, designed to bypass Congress and the scrutiny from the American people. The judge pointed out that millions and possibly billions of dollars are at stake not to mention local funding for jobs and workers in the states that sued. It also dried up the funds for the restoration of the Louisiana coastline. I guess there must be some casualties in the war on carbon. The states that are suing the administration are, Louisiana, Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah, and West Virginia. Biden's energy policy is like having a house and wanting a different house, so you burn down the old house before you have money for a new house.

In the meantime, oil prices are continuing to rise as more people jump on the bullish bandwagon. Suddenly the mainstream press are reporting on the bullish fundamentals for oil that we have been talking about for over a year ago. We warned that there was severe underinvestment in traditional fossil fuels. We warned that Biden's climate agenda would further exasperate that problem. We warned people that the demand destruction that happened because of the COVID-19 crisis would be temporary and despite the belief by many people at that time that demand destruction for oil and gas would be permanent, and that has s already proven to be incorrect. We told people that the historic OPEC production cut along with its co-conspirator Russia would be successful in reducing the oversupply that drove oil prices sub-zero to an all-time low. We told people even before the COVID-19 that the lack of investment in traditional fossil fuels was going to hurt us at some point in the future. The COVID-19 price crash exasperated the problem and now we're facing a future of ever-tightening supply.

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