Biden’s Incompetence Costs Oil and Gas Industry

Oil and gas lobbyist Kathleen Sgamma has been nominated by former President Donald Trump to helm the Bureau of Land Management. The Bureau, responsible for managing enormous tracts of public lands and subterranean minerals in the Western portion of the U.S., could potentially see a significant shift in focus with her appointment. Sgamma, President of the Denver-based Western Energy Alliance, is no stranger to the industry, with almost two decades experience working tirelessly to dismantle barriers for oil and gas extraction enterprises operating on federal lands.

Sgamma’s reaction to Trump’s nomination was highly positive and in character for an industry veteran. She welcome the opportunity to spearhead the charge in ‘unleashing American energy’. This dedication to fossil fuel production puts her squarely in line with numerous federal mandates that have been recently enacted to raise fossil fuel production. The U.S. Oil and Gas Association was nothing short of jubilant at the announcement, lauding Sgamma’s comprehensive knowledge of public lands and industry expertise.

Tim Stewart, president of the U.S. Oil and Gas Association, expressed high praise for Sgamma’s nomination in a formal statement, firmly asserting that hardly any political appointees, regardless of their affiliations, could rival her experience. He affirmed the notion that she is the quintessential choice to lead the Bureau. However, not everyone was thrilled with the nomination. Environmental advocates, in particular, criticized the decision, describing it as a stark departure from the BLM’s recent modus operandi.

For the past four years, the Bureau of Land Management had been championing conservation efforts and the battle against climate change. From the environmentalist perspective, this appointment might signal a dangerous regression to times when the Bureau’s work centered predominantly on leasing, mining, and logging. This sentiment was echoed by Athan Manuel, the current head of the land protection program at the Sierra Club.

To paint a broader picture, it’s important to note that domestic oil production saw a significant uptick under the Biden administration. Despite this, Biden threw a wrench in the industry’s works with moves that environmentalists applauded but the oil and gas sectors found frustrating. This included establishing protected status for areas rich in conservation and cultural resources, therefore making them unavailable for drilling. Famously, this included the Chaco Canyon in New Mexico and the Thompson Divide in Colorado.

Manuel expressed worries that these crucial areas could be jeopardized, potentially seeing their protections lifted and production rebooted under new leadership. Sgamma’s past actions only serve to add fuel to these fears. As a leader of the Western Energy Alliance, Sgamma has directed multiple lawsuits against the Biden administration, all targeted at restrictions on oil and gas leasing on public lands.

Michael Freeman, a lawyer with Earthjustice in Denver, has found himself frequently opposed to Sgamma’s pursuits. He has defended the bureau’s policies in the face of the industry’s demands. Freeman recounts how advocates for the industry believe the federal Bureau should be obligated to sell oil and gas leases whenever and wherever industry players demand. If they win their argument, he fears areas under the Trump Administration’s leases will never look the same post-drilling.

Before Sgamma can occupy her appointed position, she must face confirmation by the U.S. Senate. In the meantime, there have been rumblings of support for shifting the Bureau of Land Management’s headquarters back to the West. The initiative to do this was originally set in motion in Trump’s tenure, becoming a reality when the headquarters moved to Grand Junction, Colorado.

Ironically, the decision to move the headquarters was reverted by the Biden administration. This hasn’t sat well with several interested parties. Now, in a legislative twist, U.S. Representative Jeff Hurd of Colorado has proposed a new bill. His objective is to enact the return of the agency’s main offices back to Colorado.

The choices made by the Biden administration to shift the BLM headquarters away from the West, and to curtail the exploitation of key conservation and cultural areas for oil and gas extraction have not been well-received by industry insiders. Rather, they are viewed as bumbling moves that have disrupted the industry’s operation and impeded the growth of domestic oil production. These decisions seem to entertain a gross misunderstanding of the industry’s needs and the importance of this BLM’s location to the active management of Western lands.

Further demonstrating his questionable decision-making, Biden’s reversal of Trump’s move to relocate BLM’s headquarters from Washington D.C. to Colorado left much to be desired. The move, encapsulating his command-and-control approach, disregards the benefits an on-ground presence would offer in managing Western lands and understanding local contexts. This, combined with the unnecessary limitations put on drilling, showcases a penchant for ill-informed maneuvers.

How bringing the headquarters closer to the lands it manages could be perceived as detrimental is bemusing, to say the least. The decision appears to be a bid to exercise greater control, as opposed to facilitating better land management. Meanwhile, frustration and hesitation permeate the oil and gas sector given the hurdles introduced by the Biden administration.

From their viewpoint, the current administration, led by Biden, seems more focused on pleasing a select few environmentalists rather than offering functional solutions for the oil and gas industry. Despite this, the prospect of Sgamma’s nomination offers hope that this climate of uncertainty may change.

It’s clear that many parties in the oil and gas sector are looking to Sgamma’s potential confirmation as a means to bolster the industry’s position and performance, ultimately aiming to dilute the ill-conceived policies of the Biden administration. The contrast between Trump’s industry-friendly stance and Biden’s restrictive policies could not be more apparent.

Collectively, these events exemplify the Biden administration’s blunders in efficiently dealing with public land management and the fossil fuel sector. While the Biden administration may tout these steps as victories for climate change and conservation, the glaring insensitivity towards a major American industry suggests a skewed understanding of practical realities. The impending confirmation of Sgamma underscores the urgency for an industry-knowledgeable hand at the Bureau helm.