The Share of the US Loss in Oil Production Due to Its Ban in the Arctic is Named
The introduction by the United States of a partial ban on production in the Arctic could lead to a loss of about 1.5-2% of the country’s oil production, but this is unlikely to have any tangible impact on the fuel and energy complex, this opinion was expressed by RIA Novosti senior consultant at Implementa Evgenia Popova.
Bloomberg reported last week that US President Joe Biden plans to ban oil and gas development on about half of US federal lands in the Arctic to combat climate change. According to the report, the initiative is planned to be prepared within a few days.
“The introduction of a ban on oil production in the Arctic is unlikely to have any tangible impact on the country’s fuel and energy complex. However, it may have consequences for the economy of Alaska – cause an outflow of investment and oil and gas revenues,” the expert commented.
She noted that currently about 30 billion barrels of oil are concentrated on the Arctic shelf in the United States. About 480 thousand barrels per day are produced annually.
US oil production for the week ending April 5 remained at the previous week’s level of 13.1 million barrels per day, according to the weekly review of the country’s Energy Information Administration.
“Thus, the loss of half of Arctic oil production could lead to a loss of 1.5-2% on a national scale,” Popova concluded.
