Future Investment in oil compromised by Biden administration’s ‘game plan,’ energy expert warns
EPA says it may impose a discretionary re-designation of the Permian Basin
The Schork Group principal Stephen Schork weighs in as the Environmental Protection Agency looks to impose ozone regulations on the Permian Basin.
The Schork Group principal Stephen Schork argued on Tuesday that future investment in oil is compromised by the Biden administration’s "game plan" to "starve the industry of capital."
Schork made the argument in reaction to the Environmental Protection Agency’s (EPA) consideration to impose ozone regulations on the Permian Basin.
The EPA recently announced it may impose a discretionary re-designation of the Permian Basin, which is located in Texas and New Mexico and accounts for 40% of all oil produced in the United States.
Schork pointed out that the Permian Basin "is responsible for nearly four out of every nine barrels" and "nearly 44% of the production of U.S. crude oil."
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Speaking on "Varney & Co." on Tuesday, Schork argued that the EPA is considering reducing the output from the oil source as a way to "expand their powers over the industry" and "to regulate the industry even further."
He pointed to the Supreme Court’s recent EPA decision, which dealt a significant blow to the Biden administration’s climate change agenda.
The high court ruled on Thursday that the EPA cannot pass sweeping regulations that could overhaul entire industries without additional congressional approval.
Stephen Schork, the Schork Group principal, weighs in on the Environmental Protection Agency’s consideration to impose ozone regulations on the Permian Basin. (The Schork Group | iStock / iStock)
Schork noted that the ruling "severely clipped the wings of the EPA to retain certain powers" and argued that the agency’s consideration to impose ozone regulations on the basin is a way for the agency "to say, ‘look we can go after and label parts of the Permian as a non-attainment zone status.’"
"This is being done to, once again, appease the radical side of the president’s party," the energy expert went on to argue, stressing that the Biden administration and his agencies "are doing everything they can to limit the amount of fossil fuel that comes to the market."
He argued that the potential move would not be good for future investment in the oil industry.
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"It’s clear now, and it always has been clear, that this is the Biden Administration’s game plan … to starve the industry of capital," Schork said, stressing that "capital goes where it’s welcomed" and "stays where it’s well-treated."
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"What banker is going to invest capital in you when they know there’s an administration within two years [that] could outright outlaw whatever you're investing in?" he posited.
FOX Business’ Louis Casiano contributed to this report.