On his way out, President Biden permanently leaves the administration. 625 million acres Federal waters that are off-limits to oil and gas exploration. This is the move of a mean old man who wants to undermine America's energy development, one of the top priorities of his successor, President-elect Donald Trump.
It was also a desperate pitch. Post an asterisk next to his name in the record book. Yes, Biden is one of them. The most unpopular president in history But at least, as the White House statement accompanying the move said, “President Biden will conserve more land and water than any other U.S. president in history.” Presidential historians, take note.
Reducing the area available for oil and gas exploration is a completely ignorant and harmful measure. As the world races toward widespread adoption of artificial intelligence, advanced semiconductor manufacturing, cryptocurrencies, and other new technologies, every country can leverage not only its scientific superiority but also the large amounts of cheap electricity needed to power new industries. are competing to win.
According to a study by Bank of America, electricity demand in the United States increased in just one year. 13 gigawatts in the last 13 years. However, demand is predicted to soar by 70GW by 2030, thanks to the growth of energy-intensive industries such as AI. As coal-fired power plants retire and given the intermittent nature of solar and wind power, the United States will likely face “grid stabilization.” Concerns. Furthermore, we will continue to rely heavily on fossil fuels.
Some indications of the potential impact of AI alone are coming from Ireland, where it is predicted to soon dominate the electricity used to service data centers in the industry. 32 percent Among the country's total consumption.
Critics say the White House has “Policy blind spot” In considering AI, that is, focusing on the potential benefits while ignoring the enormous power required. I'm not surprised. Being realistic about our nation's future electricity needs will expose the folly of Biden's obsession with green energy.
The United States has abundant and cheap fossil fuels, which is one of the main attractions for companies choosing to invest here. Our electricity bill is fraction For example, how much European companies have to pay. Prices will only remain low if we continue to develop oil and gas while investing in renewable energy. It would be foolhardy to deny this huge competitive advantage, as Mr. Biden has done.
Traditional media describes the area removed by exploration in general terms, and the area occupied by marine production (mainly the Gulf of Mexico) is approx. 14 percent This corresponds to 2% of current oil production and 2% of current gas production. That's true, but what they hide from voters is that significant amounts of undiscovered oil and gas reserves lie offshore in those protected areas.
Federal Bureau of Land Management estimate 89.9 billion barrels of oil and 327.5 trillion cubic feet of gas remain undiscovered on the continental shelf outside the United States. They admit their estimates are outdated. Environmentalists are blocking seismic surveys of unexplored areas off the East Coast, even though such analyzes are not harmful. For example, it is not a big enough problem to allow seismic surveys. Construction of offshore wind towersThe White House happily accepted this.
Not only are large reserves found offshore, but production from subsea wells is less damaging to the environment than wells drilled on land. as reported in the new york times Last year, “extracting a barrel of oil from the Gulf of Mexico produces one-third fewer greenhouse gas emissions than producing a barrel of oil from oil fields in the continental United States.''
of According to a White House statement“President Biden has determined that the environmental and economic risks and harm posed by drilling in these areas are: [‘the entire U.S. East coast, the eastern Gulf of Mexico, the Pacific off the coasts of Washington, Oregon, and California, and additional portions of the Northern Bering Sea in Alaska’] exceeding the potential of limited fossil fuel resources. ”I don't think Mr. Biden has a firm grasp of the risks and possibilities of drilling in these areas. The last major marine accident occurred in 2010. Since then, the industry has developed better safety protocols.
On the one hand, the possibilities are huge. Until now, there has been little interest in much of the designated land; Financial Times memo “The consulting firm Clearview Energy Partners estimates that a ban in the eastern Gulf of Mexico would affect approximately 40 percent of the undiscovered and economically recoverable oil and gas resources on the outer U.S. continental shelf. said.”
Ron Neal, Chairman of the American Independent Petroleum Association Offshore Committee, said: explained It added that Biden's move is “significant and devastating” and “represents a major attack on the oil and gas industry.”
Biden's decision is particularly short-sighted as the United States benefits from a surge in investment from foreign companies hoping to take advantage of expected deregulation and lower energy costs under President-elect Donald Trump. Friends in the private equity industry who recently traveled abroad in search of capital and investment possibilities after the election found that most executives wanted to invest in the United States.
In recent days, President Trump announced Information that UAE real estate developer Hussein Sajwani is pledging $20 billion to build new data centers in the United States comes in addition to SoftBank CEO Masayoshi Son, an AI enthusiast. , promising In December, the United States decided to invest $100 billion in the United States and create 100,000 jobs during President Trump's four years in office.
Voters should be outraged by Mr. Biden's efforts to permanently ban most offshore drilling. A majority of the country elected Donald Trump, who campaigned on the promise of “Drill, Baby, Drill.” They get what's at stake, even if Joe doesn't get it.
liz peakHe is a former partner at Wertheim & Company, a major Wall Street firm.
