Perspective: High gas prices aren’t all about Ukraine – By David Jenkins (Deseret News) / Oct 1, 2022
Little-known reforms in the Inflation Reduction Act help to hold the oil and gas industry accountable, but more can be done
Legislation recently signed into law by President Joe Biden, dubbed the “Inflation Prevention Act,” is being talked about ad nauseam by the media. Yet somehow, important new oil and gas leasing reforms included in that legislation are rarely, if ever, mentioned in the coverage.
The old status quo resulted in the oil and gas industry hoarding leases, which shortchanged taxpayers. It also helped enable the oil and gas industry to keep gasoline prices artificially high by not increasing production to meet demand.
For many years, lawmakers on both sides of the aisle have been pressing for leasing reforms, such as higher minimum bids, increased royalty rates and an end to noncompetitive leasing, but lobbyists always managed to secure enough votes to block them.
That didn’t happen this time, as several important reforms were included as part of this reconciliation bill, which needed only 50 votes to pass the Senate.
