CNN

Why Biden’s ban on drilling in the Alaska National Wildlife Refuge likely won’t affect gas prices

Sep 12, 2023, 9:01 AM | Updated: 9:03 am

The Biden administration has announced a ban on oil drilling in the Arctic National Wildlife Refuge...

The Biden administration has announced a ban on oil drilling in the Arctic National Wildlife Refuge in Alaska. (The Asahi Shimbun/Getty Images)

(The Asahi Shimbun/Getty Images)

Live at 9:05; Dave & Dujanovic talk about the impact gas prices have on everything else. 
 
New York (CNN) — There are many reasons why gas prices could shoot up in the near future, but the Biden administration’s ban on oil drilling on millions of acres in Alaska in unlikely to be one of them.

The ban, announced on Wednesday, cancels seven Trump-era oil and gas leases in the Arctic National Wildlife Refuge and prevents drilling on more than 13 million acres in the federal National Petroleum Reserve in Alaska. President Joe Biden said his motivation for the bans was to protect and preserve the region in the face of climate change.

Given a limited amount of drilling was taking place there prior to the ban, there’s a slim chance consumers will feel more pain at the pump from this, said Patrick De Haan, head of petroleum analysis at GasBuddy.

“This is primarily about optics,” he said. Most oil companies didn’t bother bidding on the drilling leases in anticipation that they’d be canceled, he added. On top of which, many steered clear of the area because there wasn’t sufficient infrastructure. “There’s little power to drill, pipeline to carry the crude oil, roads and everything needed basically to drill for oil,” he told CNN.

The ban on drilling in the region would “not at all” hurt consumers in the future, De Haan said.

In contrast, oil production cuts in Russia and Saudi Arabia that were announced earlier this week are having immediate impacts, lifting Brent crude oil above $91 a barrel for the first time in 10 months. Brent crude is the international oil price benchmark and is produced in the North Sea.

Meanwhile, extreme summer heat has prevented many US refineries from operating at full capacity, leading to elevated gas prices throughout the peak driving season. Prices have come down slightly after Labor Day weekend. The national average for regular gasoline was $3.80 a gallon on Thursday compared to $3.83 a week prior, according to AAA data.

The-CNN-Wire
™ & © 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

CNN

A phone screen displays the TikTok logo...

Brian Fung, CNN

Biden just signed a potential TikTok ban into law. What happens next?

Washington (CNN) — President Joe Biden signed a bill Wednesday that could lead to a nationwide TikTok ban, escalating a massive threat to the company’s US operations. Congress had passed the bill this week as part of a wide-ranging foreign aid package meant to support Israel and Ukraine. It was approved by the House on […]

10 minutes ago

Senate Majority Leader Chuck Schumer speaks to reporters on Capitol Hill on April 17. The Senate wi...

Morgan Rimmer and Ted Barrett, CNN

Senate passes $95 billion package sending aid to Ukraine, Israel and Taiwan after months of delay

The Senate on Tuesday passed a long-delayed $95 billion package after both sides of Capitol Hill have struggled for months to send aid to Ukraine, Israel and Taiwan.

17 hours ago

An image produced using optical microscopy shows Clostridium botulinum, an ingredient in Botox and ...

John Bonifield, CNN

Counterfeit, mishandled Botox injections linked to harmful reactions in nine states

Harmful reactions to botox have been reported in nine states.

2 days ago

Victoria Beckham’s birthday party on Saturday got a little spicy, as the fashion designer celebra...

Alli Rosenbloom, CNN

Victoria Beckham reunites with the Spice Girls for iconic singalong at 50th birthday party

Victoria Beckham’s birthday party on Saturday got a little spicy, as the fashion designer celebrated with her former Spice Girls bandmates.

2 days ago

More than a dozen people were taken to area hospitals following a tram collision at Universal Studi...

Paradise Afshar and Cindy Von Quednow, CNN

Tram collision at Universal Studios theme park leaves more than a dozen people with minor injuries

More than a dozen people were taken to area hospitals following a tram collision at Universal Studies Hollywood Saturday night.

2 days ago

This composite image shows former President Donald Trump (center), Stormy Daniels (top left), Micha...

Kaanita Iyer, CNN

Here are the key players in Trump’s hush money trial

Originally Published: 15 APR 24 07:00 ET Updated: 21 APR 24 20:26 ET (CNN) — Opening statements in Donald Trump’s criminal New York hush money trial are set to begin Monday, more than a year after the former president was indicted in the case. The trial, which made its way swiftly through jury selection last week, is expected […]

3 days ago

Sponsored Articles

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

Why Biden’s ban on drilling in the Alaska National Wildlife Refuge likely won’t affect gas prices