The Biden administration is targeting the largest oil-producing area in the United States: the Permian basin, located in western Texas and southeastern New Mexico.
The Environmental Protection Agency (EPA) is considering labeling parts of the Permian Basin as violating the ozone standards set by the federal government.
“EPA is now considering a discretionary redesignation for (portions of) these counties in New Mexico and Texas for the 2015 ozone NAAQS under Clean Air Act section 107(d)(3) based on current monitoring data and other air quality factors,” the Biden administration wrote.
If the EPA succeeds in its plan, new permitting requirements and scrutiny of drilling operations will ensue.
“The possible regulatory action adds yet another element of uncertainty to the oil industry, which is already facing an unknown future while being chastised for not investing more to produce more—whether that’s refining or drilling,” oilprice.com explains.
“Creating uncertainty on…
