NEW ORLEANS aEUR: President Joe Biden’s administration proposed Friday up to 10 oil-and gas lease sales in Gulf of Mexico and one off Alaska’s coast over the next five year aEUR.” This goes against the Democrat’s climate promises, but it also scales back a Trump-era plan which called for dozens of offshore drilling possibilities, including in undeveloped areas.
Interior Secretary Deb Haaland stated that less than 11 lease sales aEUR”, or none at all, could be made. A final decision is not expected for several months. Trump has been considering drilling off the Atlantic coast and Pacific coasts.
“President Biden has made it clear that he and I are committed to moving to a clean energy economy. We offer the American people an opportunity to… give input on the future offshore oil and gas leasing. Haaland, who oversees drilling on federal lands, said that today.
Both environmentalists aEUR” accused Biden betraying climate change aEUR”, and officials from the oil industry and their allies who claimed it would not do much to reduce high energy prices. On Friday, gasoline prices averaged $4.84 per gallon. This was a significant burden on commuters as well as a political problem for Biden and his fellow Democrats heading into the midterm elections. The White House is scrambling to find solutions. Biden called last week for the suspension of the 18.4c per gallon federal gas tax.
The Interior Department had stopped leasing sales in January due to climate concerns, but was forced by a U.S. District Judge in Louisiana to resume them.
When it cancelled the last scheduled lease sales in Alaska and the Gulf during the previous offshore leasing cycle, the Biden administration referenced conflicting court decisions. The previous five-year program, which was established under former President Barack Obama’s leadership, ended on Thursday.
A gap of several months will exist before a new plan is put into place. According to the oil industry and its allies, delays could lead to problems when planning new drilling, and possibly lower oil production.
Frank Macchiarola senior vice president at the American Petroleum Institute, industry’s leading lobbying group, stated that an offshore lease sale is unlikely until next year.
He said that administration officials had “gone out of their way” to suggest there might not have been any lease sales.
He said that it was important that the administration sends a message to the global oil market that the United States is serious in increasing supply… over the long-term. This reiterates a long-standing claim made by Republicans and industry officials that high oil prices are linked to uncertainty.
Biden has been critical of oil producers and refiners in recent weeks for maximising profits and making “more than God” rather than increasing production to meet higher prices as the country recovers from the pandemic.
The leasing announcement was disappointing for environmentalists as well as some Democrats who rallied behind Biden’s promise to end federal drilling.
This proposal is made just one day after the administration had held its first onshore leasing sales. It attracted $22 million in an auction that gave energy companies drilling rights to approximately 110 square miles (285 kilometers) in seven western States. Despite the fact that the administration had already concluded that the potential climate damage from burning oil and natural gas in the parcels could cost billions of dollars, the sales were made.
“Our public lands, waters and forests already account for almost a quarter of the nation’s annual carbon pollution. Raul Grijalva (D-Arizona), Chairman of the House Natural Resources Committee, stated that adding any new lease sales to this equation is absurd while the climate crisis unfolds all around us.
Cynthia Sartou is the executive director of Healthy Gulf, an environmental non-profit. She called the lease-sale program “a big loss for Gulf residents and American energy policy as well as the global climate.”
Joe Manchin (moderate Democrat) welcomed the proposal because it offered a chance to “get our leasing program back on track.”
The lawmaker from West Virginia stated that while Americans are all suffering from record high gas prices, disruptions in the world oil market and (Russian leader Vladimir Putin’s) senseless war in Ukraine; the Department of the Interior has not held any successful offshore leasing sales since November 2020.
Interior officials proposed 47 sales under the Trump administration. These included 12 in the Gulf of Mexico and 19 in Alaska. Nine of the Atlantic coast sales were also proposed by Interior officials. Trump lost the 2020 election before this proposal was approved.
Obama created the current Gulf-wide sales format to address declining interest in offshore leases. Before that, there were decades of regional sales.
Friday’s announcement will open a period of public comment for 90 days. The final plan must then be submitted within 60 days.
In November, the government held an auction for offshore leases in the Gulf of Mexico that attracted $192 million in bids. The sale was canceled by a court before leases were issued.
Haaland previously stated that the industry was “set” by the number of drilling permits it has at its disposal. In April, she testified before the House that about 9,000 permits have been approved and are not being used.
Although oil production has been increasing as the economy recovers after the coronavirus slowdown it is still below pre-pandemic levels. Due to a shortage in workers and investor concerns that today’s high oil prices will not last, energy companies have been reluctantly increasing production.
Major oil companies reported record profits for the first quarter. They also sent dividends in the tens of trillions of dollars to shareholders.
Athan Manuel, Sierra Club, stated that delaying offshore sales until next years “is an important step towards protecting communities and climate, so we urge the administration for a plan that commits no new offshore drilling leases.
