‘I say enough’: Biden calls for ‘use it or lose it’ policy for oil leases on federal land

President Joe Biden speaks about his administration's plans to combat rising gas prices in the South Court Auditorium on the White House campus (AP)

US President Joe Biden on Thursday slammed oil companies for refusing to increase production to make up shortfalls caused by the removal of Russian oil from US markets.

Calling the crisis stemming from Russia’s unprovoked invasion of Ukraine “a moment of crisis and peril for the world and pain at the pump for American families,” Mr Biden said the spike in oil and gas prices brought on by the US ban on Russian oil could be “a moment of patriotism” for domestic oil producers.

“I want to acknowledge those companies that have already announced they're increasing immediate production. They're investing money to produce more oil and also clean technology we need to reduce our dependence on oil in the future. They have everything they need nothing standing in their way, and they've indicated they will producing an extra 1 million barrels of oil per day probably starting as early as this fall,” Mr Biden said. “That’s progress.”

But the president said “some companies” have been “pretty blunt” in refusing to do anything to reduce prices.

“They don't want to increase supply because Putin's price hike means higher profits. One CEO even acknowledged that they don't care if the price of a barrel of oil goes to $200 a barrel, they're not going to step up the production” said Mr Biden, who immediately added: “I say: Enough”.

“Enough of lavishing excessive profits on investors and payouts and buybacks when the American people are watching, the world is watching,” he continued. “This is a time not the time to sit on record profits. It's time to step up for the good of your country.”

Mr Biden said American oil companies are currently “sitting on” nearly 9,000 unused drilling permits representing over a million acres of federal land, and called on Congress to enact a “use it or lose it” policy under which companies that don’t drill on land they’ve leased would lose the leases entirely.

“Congress should make companies pay fees on wells on federal leases they haven't used in years and acres of public land they're hoarding without production,” he said. “Companies that are already producing from these wells won't be affected, but those sitting on unused leases and idle wells will either have to start producing or pay the price for their inaction.”