Biden Drilling Ban Leaves Majority of U.S. Production Untouched
- U.S. may lose up to 200,000 barrels a day out of 11 million
- Rystad analyst doesn’t see short-term price impact from ban
A Chevron Corp. deepwater oil platform in the Gulf of Mexico.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
President Joe Biden’s temporary halt to new leases for drilling on federal lands leaves the vast majority of U.S. crude production untouched, though it may be the death knell for the Gulf of Mexico’s already dwindling output.
Should the halt announced Wednesday become permanent, the U.S. would stand to lose as much as 200,000 barrels a day of output by the end of this decade, according to Artem Abramov, head of shale research for Rystad Energy. It’s a small fraction of America’s roughly 11 million barrels a day of production.