The results demonstrate that the oil-and-gas industry “is working to meet growing demand and investing in the nation’s long-term energy security,” Hopkins said. Holly Hopkins, API vice president of upstream policy, called Wednesday’s sale “a “positive step after multiple delays,” and noted that it generated the highest dollar value for bids in nearly a decade. “The Gulf of Mexico is a prime economic engine and investment area, and this was the last chance for companies to secure leases in the near term.” economy,” said National Ocean Industries Association President Erik Milito. “In our forward-thinking industry, securing new lease blocks is vital for exploring and developing resources crucial to the U.S. The industry, meanwhile, said more sales are needed - and sooner. “New oil-and-gas operations will only bring more health risks to Gulf Coast communities and slow our transition to a clean-energy economy,” said Earthjustice attorney Brettny Hardy. That was the minimum number the administration could legally offer if it wants to continue expanding offshore-wind development.Įnvironmental groups criticized the five-year plan as a “missed opportunity” to stop the expansion of oil-and-gas drilling in the Gulf of Mexico and address climate change. The administration in September proposed up to three oil-and-gas lease sales in the Gulf of Mexico over the next five years and none in Alaska waters. Only a small portion of parcels that are offered for sale typically receive bids, in areas where companies want to expand their existing drilling activities or where they foresee future development potential. Under the terms negotiated by Manchin, the government must offer at least 60 million acres of offshore oil-and-gas leases in any one-year period before it can offer offshore-wind leases that are part of its strategy to fight climate change. The measure was approved with only Democratic votes in Congress. Joe Manchin of West Virginia, a supporter of the oil-and-gas industry who cast the deciding vote in favor of the landmark climate law. The lease sale was required under a compromise with Democratic Sen. Environmental groups appealed, but the New Orleans-based 5th Circuit Court of Appeals last month rejected their arguments against the sale and threw out the plans to scale it back. Subsidiary Shell Offshore, the American Petroleum Institute and the state of Louisiana sued to reverse the cut in acreage and block the inclusion of the whale-protecting measures in the lease-sale provisions.Ī federal judge in southwest Louisiana ordered the sale to go on without the whale protections, which also included regulations governing vessel speed and personnel. Wednesday’s online auction was originally scheduled for September but got delayed by a court battle after the administration reduced the area available for leases from 73 million acres to 67 million acres as part of a plan to protect the endangered Rice’s whale. The next sale will be conducted in 2025, to the frustration of energy companies and Republicans who say the administration is hampering U.S. The dollar amount of the successful bids marked a sharp increase from the previous sale in March 2023, when the Interior Department awarded leases covering about 2,500 square miles for $250 million. Department of Interior’s Bureau of Ocean Energy Management. Offered bids on more than 300 parcels covering 2,700 square miles, according to the U.S.
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