Lawrence Person's BattleSwarm Blog

Some New Mexico officials are now trying to defend themselves by saying they didn’t anticipate the new President would issue such a ban, but such protests ring rather hollow given that they most assuredly did understand that Biden plans to move ahead with his fracking ban, which would for all intents and purposes have the same effect. After all, virtually 100% of the drilling activity in southeast New Mexico targets the various shale formations in the Delaware Basin, and all shale wells require a frac job in order to be productive. Thus, a ban on fracking is the same thing as a ban on leasing and drilling.

in Texas, where small, independent operators play a significant role in oil production, Biden’s policies could pack more of a punch.

Among Biden’s policy proposals:

• Required disclosure of climate risks from public companies.
• A commitment to end new drilling permits for federal lands.
• A pledge to eliminate tax subsidies for the oil and gas industry.

“To the extent that there will be effects, those effects would be felt primarily by smaller producers,” said Sheila Olmstead, professor of public affairs at the LBJ School of Public Affairs at the University of Texas. She served as the senior economist for energy and the environment at the President’s Council of Economic Advisers under President Barack Obama.