Reality check. When a lease to drill is auctioned there is an expectation but not requirement that the winner will drill. In the real world 2/3-3/4 of these leases are purchased without intention to drill, it is done for accounting reasons (lower loan rates and attractive to investors based upon lease assets) and to basically have the ability to control the market somewhat. Many are shocked to learn just how cheap these leases go for. Somewhere around $6k an acre for the lease and an annual fee of $1.50-$3 per acre per year to just hold. The oil industry predictably denies this and, as they always have, claims government red tape is what is holding up production.
As to the temporary pause in new leases by the Biden admin. it was to give time for determining the social cost of greenhouse gas formula being resolved in court. When a Fed Judge blocked the pause claiming only Congress can modify the sale of leases the administration resumed sales of leases at a pace exceeding even Trump's. As to permits for existing leases, the Biden admin issued more than 3,500 drilling permits it's first year, 900 more than Trump's first year. Biden also put 80 million acres in the Gulf of Mexico up for auction in the largest lease sale in history.
What you are hearing from oil company lobbyists and political pundits is a mix of half truths and distortions. The simple supply and demand claim is only a small part of the puzzle.