Abbott: EPA Plan Will Cripple Oil Production in Permian Basin, Raise Gas Prices Further

Texas Gov. Greg Abbott is pushing back against an Environmental Protection Agency proposal that he says would cripple oil and gas production in the Permian Basin – potentially jeopardizing a quarter of the U.S. gas supply.

In a letter he sent to President Joe Biden on Monday, he said, “While you express concern about out-of-control gas prices, your Environmental Protection Agency (EPA) is threatening to increase them even further. The EPA’s process could interfere in the production of oil in Texas which could lead to skyrocketing prices at the pump by reducing production, increase the cost of that production, or do both.

“Your administration’s announced action is completely discretionary. Thus, you have the power to stop it. If you do not, this action alone might serve as a catalyst for economic harm leading to an even deeper reliance on imported foreign energy and a faster economic decline into the pending recession by forcing even more pain for American consumers to pay at the pump.”

The EPA announced it was reversing a 2017 decision by designating regions of the Permian Basin in certain New Mexico and Texas counties as nonattainment areas, meaning they don’t comply with 2015 Ozone National Ambient Air Quality Standards (NAAQS). The rule is set to go into effect in September, according to a link on the Office of Management and Budget website, which has since been taken down after The Center Square inquired about it. The EPA did not respond to a request for comment.

The Permian Basin produces roughly 5.2 million barrels of oil a day, which translates to roughly 95 million gallons of gasoline a day. Permian oil production is set to reach a record 5.3 million barrels a day in July, according to the U.S. Energy Information Administration… (Excerpt from The Virginia Star)