July 1, 2022

Biden administration agrees to revise permit for oil refinery after protests by environmental groups

President Joe Biden is overseeing an economic crisis in the making with soaring energy costs. Still, he recently kowtowed to environmental groups in a move that will worsen the situation.

The administration has agreed to revise a permit for an Indiana BP oil refinery after receiving pressure from two environmental groups, the Daily Caller reported. This comes as short supply and rising demand have put the U.S. on the precipice of an energy crisis.

The Environmental Protection Agency has agreed to the demands set by the Environmental Integrity Project and Sierra Club in a July 2021 lawsuit. The groups dismissed their lawsuit claiming the dispute “has now been fully resolved.”

A northern Indiana refinery was under scrutiny after the groups claimed the EPA allegedly ignored the Clean Air Act in granting the Whiting facility its permit. EPA then issued an order on March 4 that said it “grants in part and denies in part the Petition requesting that the EPA Administrator object to the Permit.”

The agency has referred the matter to the Indiana Department of Environmental Management to update the refinery’s permit. The new requirements mean additional monitoring for air pollution and maintaining heat input in accordance with the petition, which places another burden on production.

One of the many factors that impact petroleum supply — and therefore prices — is the ability to process crude oil. However, the U.S. has closed several refineries since 2019, cutting supply by 800,000 barrels and leading to the fewest number of barrels per day refined since 2013, with output down to 17.7 million barrels produced daily.

Moreover, environmental regulation coupled with a previously forecasted decrease in demand meant that no new refineries had been built in America since the Carter administration, according to the New York Times. This shortfall compounds the supply issues created by Biden’s propensity for canceling drilling and nixing plans for a pipeline.

Clean air and water are certainly priorities for all Americans. However, giving in to the demands of radical environmental groups in the face of a coming energy crisis will no doubt prove to be foolish and costly moves.

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23 days ago

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