North Dakota, the nation’s second-biggest producer of oil, filed a lawsuit against the Biden administration this week for halting oil and gas leases on public lands.
“Oil and gas production are central to North Dakota’s economy and the welfare of citizens, responsible for 54% of the value of the State’s economy, generating approximately 76% of the State’s tax revenue and creating approximately 66,000 good-paying jobs in the State,” the lawsuit states. “Oil and gas produced from leases on Federal and Indian lands in North Dakota are an important part of this sector, generating approximately $ 93.65 million in royalties to the State every year.”
U.S. Senator Kevin Cramer released a statement announcing his support of the lawsuit, claiming the moratorium is harmful and illegal.
“In addition to being a foolish idea, President Biden’s moratorium on oil and gas leasing on public lands is illegal,” Cramer said. “It increases federal and state budget shortfalls hampers state and private mineral owners’ rights, and makes the United States less energy independent and more reliant on foreign producers who are not all good actors like Russia, Saudi Arabia, or Venezuela. I support Attorney General Stenehjem’s effort in court, applaud him for standing up for North Dakota, and stand ready to help in any way I can.”
The lawsuit comes the week AAA announced that national gas prices had reached a seven-year high and are expected to continue to rise.
“The national gas price average has increased 40% since the start of the year, from $2.25 on January 1 to $3.13 today,” AAA reported. “Moreover, it is not stopping there. Motorists can expect gas prices to increase another 10–20 cents through the end of August, bringing the national average well over $3.25 this summer.”
AAA added, “The last time crude was more than $76.40 and the national average gas price was at $3.25 was November and October 2014, respectively. Prices for crude will exceed this threshold as early as today and gas prices will follow suit in coming weeks, paving the way for a very expensive peak driving season.”
“The latest weekly report from the Energy Information Administration shows that gasoline demand remains robust at 9.1 million b/d, despite a weekly decrease,” AAA continued. “EIA reports that gasoline stocks increased by 1.5 million bbl to 241 million bbl last week. Since last Monday, the national average increased four cents and is more expensive on the month (+8 cents) and the year (+95 cents).”
