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Energy & Science

Biden’s Oil-Relief Plan Seen Backfiring as Drillers Dig In Heels

  • Reserve release lowers new drilling incentive, analysts say
  • Biden grappling with Russia pressure, gasoline prices, climate
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Biden says oil companies need to drill more on federal lands.Source: Bloomberg

U.S. President Joe Biden’s plan to tackle record gasoline prices with an unprecedented release of emergency oil reserves may stifle domestic crude drilling just when it’s needed most. 

Although the immediate impact of Biden’s latest energy initiative has been a 7% drop in oil prices, analysts warned any reprieve will be short-lived. The president wants to exact financial penalties on drillers for unused federal permits, and enhance the focus on clean energy, leaving oil executives less inclined than ever to invest the proceeds from $100-a-barrel crude into new wells.