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Bad for business? Biden's first executive order places restrictions on nation's oil and gas industry

The actions put in place with the executive order will limit oil and gas trading potential with Canada and likely increase demand for middle eastern oil imports

TEXAS, USA — Within hours of sitting at his new desk in the White House, President Joe Biden signed an executive order that placed restrictions on the nation's oil and gas industry.

A set of actions that fall in line with his commitment to make reducing carbon emissions a priority.

Naturally the restrictions haven't been received well within the oil and gas industry, which many executives see as a handicap to an industry that has lifted the American economy to new heights in recent years.

"It didn't take him very long to throw a wrench in the works," said Tommy Taylor.

Tommy Taylor is the director of oil and gas operations for Fasken Oil and Ranch.

Apart of Biden's executive order, revoking a key cross border permit on the Keystone XL pipeline project. The order will all but force the project to seize operation.

The project was set to build a key connection of cross border pipeline from Alberta, Canada to the gulf coast of Texas.

"The idea was to take our high grade condensates and oils from Texas and pump them up to Canada, and then mix it with their tar sand oil. Then bring it back down to Houston and you'd have a product that our refiners could use and process," said Taylor.

Taylor says the collapse of this project will likely limit the trading potential between the United States and Canada for oil and gas.

"It's a shame that we have one of our preferred trading partners and allies in Canada and we're just cutting them off at the stroke of a pen," said Taylor.

The ramifications of the project shutting down will be determined as time passes, but could Taylor believes, this will increase demand for middle eastern oil.

"It's really bad for oil and gas business and the country, it means that we're probably going to make less oil and gas and we're going have to import more probably from the middle east," said Taylor.

Also in the executive order, a 60 day freeze on oil and gas drilling permits on federal and public lands.

A tough pill to swallow for economies built on oil and gas with these kind of lands.

"Particularly for New Mexico, much of their state is federal and state lands and they're all intermingled in Lea and Eddy county and if it goes on very long it is really going to hurt their economy," said Taylor.

So for those based in New Mexico, or even Texas companies with planned projects for their neighboring state, the future becomes cloudy.

"You know business leaders need surety they need the confidence that when they assign their capital to the project that they can go over and do the work," said Taylor.

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