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Big U.S. oil drillers have federal permits to mute effect of any Biden ban

(Reuters, 21 Jan 2021) Biden has pledged to ban any new drilling on federal lands, but major players have stockpiled years' worth of permits.

U.S. President Joe Biden's promised ban on new oil and gas drilling on federal lands would take years to shut off production from top shale drillers because they already have stockpiled permits, according to Reuters interviews with executives.

But smaller independent oil drillers without the resources of big corporations were more worried about Biden's vow to toughen regulations and stop issuing new permits on federal lands, part of his sweeping plan to combat climate change and bring the economy to net zero emissions by 2050.

Federal lands are the source of about 10% of U.S. oil and gas supply. Fossil fuels produced on federally managed lands and waters contribute nearly 25% of U.S. greenhouse gas emissions, according to government estimates, making them an easy target for the administration's climate agenda.

Biden's pledge would reverse former President Donald Trump's efforts to maximize drilling and mining on federal property. But it will not end production in those areas overnight.

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Reuters, 21 Jan 2021: Big U.S. oil drillers have federal permits to mute effect of any Biden ban