President Biden faces criticism from oil and gas, environmentalist after New Mexico visit

President Joe Biden addressed New Mexico Wednesday from a wind turbine plant in Valencia County, touting his economic policies known as “Bidenomics” and support of renewable energy as a job creator and economic boon for the state and nation.

New Mexico’s economy is presently led by fossil fuels, making up about half of State General Fund revenue, according to the latest state finance projections.

Gov. Michelle Lujan Grisham during the event said the Biden administration was aligned with New Mexico’s in shifting to a “clean energy economy,” through support of the state’s growing renewable energy industries as an alternative to oil and gas.

“You need a federal government that has the same vision as ours,” she said in her speech. “That New Mexico families will and can deliver the kind of economy and more importantly than that, the kind of clean energy economy this country needs and deserves.”

Biden's visit was the second in a three-state tour where he also created a national monument in Arizona, and in Utah promoted legislation to increase veteran health care.

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Critics of the president asserted he made little mention of the oil and gas industry during his speech from the Acrosa Wind Towers Facility in Belen, or its environmental impact and climate change, opting instead to promote what he said was the growing renewable energy industry and its financial benefits.

That drew concerns from oil and gas supporters who argued the federal government should work to support the industry, while environmentalists argued more action should be taken to phase out fossil fuels.

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Biden did discuss a transition from fossil fuels during his speech, an effort bolstered, the president said, by developing new technologies in the renewable sector making the U.S. “poised to be the leader in the wind industry.”

“So we passed significant climate legislation that not only moves away from fossil fuels to cleaner technologies like wind, but it means we’re going make things and new technology here in America,” the president said during his speech.

In a statement from the Republican Party of New Mexico following the speech, spokesperson Ash Soular said the president was “out-of-touch” with New Mexico for a lack of oil and gas mentions, among other issues.

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Soular said Biden’s policies resulted in higher fuel and other costs for New Mexico and consumers nationwide.

“He didn't address our oil and gas workers, who produce the largest source of revenue in our state and whose jobs are threatened by his administration,” Soular said. “Instead, the President came to brag about his 'Bidenomics' which has only resulted in higher prices at the pump, escalating food costs and less money in the pockets of hard-working New Mexicans.”

Biden policy received mixed reaction from New Mexico environmentalists

Biden made energy policy a key issue during his 2020 campaign for President, vowing to end the use of hydraulic fracturing during debates.

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And in January 2021, upon taking office, Biden’s administration placed a moratorium on new federal oil and gas leases while the Interior Department retooled its fossil fuel program, resulting in higher royalty and lease rates oil companies pay to operate on public land.

The Inflation Reduction Act (IRA), a signature piece of legislation Biden signed into law last year that did increase restrictions on air pollution emission from oil and gas facilities, but also required lands be used drilling in exchange for new renewable energy leases.

Alejandra Lyons of New Mexico environmental group No False Solutions, criticized the Biden administration for approving oil and gas leases and permits, after the moratorium was lifted in 2022, largely in the Permian Basin of southeast New Mexico.

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That shale region, which New Mexico shares with West Texas, is one of the U.S.’ busiest, forecast to produce more than 5.7 million barrels per day in August, according to the Energy Information Administration.

“President Biden has approved more oil and gas drilling permits than President (Donald) Trump, and more than half of those have been in New Mexico’s Permian Basin,” Lyons said. “The fracking explosion in southeastern New Mexico is leading to a surge in oil and gas pollution that is devastating our climate and putting frontline communities at risk.”

Environmental groups were also critical of the administration for promoting hydrogen production as a “clean” energy source.

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The Department of Energy offered funds to states looking to develop “hydrogen hubs” where such production would center, and New Mexico with support from Lujan Grisahm along with a group of western states applied for the program as the Western Interstate Hydrogen Hub

There are several ways to produce hydrogen for energy, involving either the use extracted natural gas or renewable energy, and critics of the idea worried most would still use fossil fuels despite being promoted as a less-pollutive alternative.

Ennedith Lopez with New Mexico-based Youth United for Climate Crisis Action (YUCCA) said renewable energy like wind and solar power should be targeted as “real solutions” to generate energy without worsening pollution.

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“Investing in hydrogen at this late hour of the climate emergency is a catastrophically bad idea,” Lopez said. “Hydrogen distracts from real solutions, like wind and solar, which are proven technologies, do not release greenhouse gas emissions or pollute communities, are cheaper to make, and create jobs without sacrificing our communities.”

Other environmental groups gave a sunnier take on Biden’s policies in the wake of his visit to New Mexico, arguing the IRA did provide some regulatory progress toward a “transition” to cleaner forms of energy.

The bill did provide funds for renewable energy projects, like the Acrosa plant which planned to invest up to $60 million in federal dollars, along with money earmarked to plug abandoned oil wells throughout the state and for a statewide electric vehicle charging system along New Mexico’s interstates.

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“The Inflation Reduction Act is helping New Mexicans mitigate and adapt to climate change in significant and practical ways - from flood-proofing and storm resistance, to rebates and tax credits for energy efficiency and clean energy projects,” said Mark Allison, executive director at the New Mexico Wilderness Alliance.

But Daniel Turner with oil and gas trade group Power the Future said the IRA and other Biden-led policies caused gasoline prices to rise by 30 percent in recent months, calling on Congress to take action to support the industry.

“It is time for the Congress to step in and proactively pass legislation which reins in the Biden Administration’s war on American energy and empowers our workers to do what they do best and produce energy for the nation,” Turner said Wednesday.

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.

This article originally appeared on Carlsbad Current-Argus: Biden criticized on energy, climate policy after visit to New Mexico