The Biden administration aims to substantially curb new oil and natural gas drilling on public lands as it attempts to combat climate change and emphasize renewable fuels.

Oil Levels

The White House said it would resume selling leases to drill for oil and gas on federal lands, though the number of acres available declined dramatically and it will cost drillers more to work on public property. Auctions are expected to start later this year.

The Interior Department’s Bureau of Land Management (BLM) is planning to release a sale notice for leases to drill on 144,000 acres of government land this week. However, that level marks an 80% reduction in available land for leasing when compared with a previous federal leasing plan.

Energy companies also would have to pay higher royalties for the...