Big Oil Supports the Dem Inflation Act As Smaller Drillers Face Ruin

Big Oil supports the Inflation Reduction Act which isn’t great for small and medium-sized producers. The Act also does nothing for inflation.

Inside Sources reviewed the reasons oil and gas are backing the bill.

Exxon and BP, some of these places, are not against climate change and there are some things in the bill to help them.

The bill opens up some leases. It also ties the ability to lease offshore wind projects to oil and gas leases. If the government approves a wind project on public land, they also have to allow an oil and gas lease.

Some do realize they can’t just cut off fossil fuels, especially as national security issues arise with the war in Ukraine.

Unfortunately, it harms smaller corporations.

According to an industry letter that was sent Tuesday night to the House Ways & Means Committee, smaller, independent oil and gas companies are arguing that the bill’s numerous, costly regulations will threaten their industry’s development.

It’s not likely that Big Oil or Central government hawks would care.

Smaller organizations say the “bill will exacerbate supply concerns at a time of high crude and gasoline prices.”

The climate package will impose slews of new taxes and penalties that allow the Environmental Protection Agency (EPA) to place new charges on methane leaks at $900 per metric ton, rising to $1,500 in 2026.

Though EPA methane rules are yet to be finalized, companies will still be charged for excess emissions.

The act also doubles rental fees on onshore leases. It imposes a new fee on submitting land for leasing and increases onshore royalty rates to nearly 17% from the previous rate of 12.5%.

It will discourage energy production for the 9,000 smaller drillers but that is the goal.

Exxon, Occidental, BP back the bill, and this will likely give them a good ESG score and they are subsidized unlike the smaller drillers. What do they care if smaller drillers go under? They’re just competition. There is nothing moral about ESG no matter how much they claim it is. It’s simply a method of controlling investments and insuring they promote only far-left WOKE ideology.

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