Bloomberg Law
Aug. 9, 2022, 7:36 PM

Oil Exploration, Speculation to Be Riskier Bets in Climate Bill

Bobby Magill
Bobby Magill

New oil and gas leasing and production fees imposed under the Inflation Reduction Act will make oil exploration riskier on federal lands and cut down on speculation, but will provide greater certainty for the industry, analysts say.

The legislation (H.R. 5376) would provide greater clarity for the oil and gas industry in the short term because it provides a regular schedule of offshore oil and gas lease sales and encourages onshore leasing on federal lands, said Jason Hill, counsel at Hunton Andrews Kurth LLP in Houston.

The oil and gas industry has been concerned the future of oil ...