The Biden administration has announced a proposal for three offshore oil and gas lease sales over the next five years, all of which will be situated in the Gulf of Mexico. Notably, no lease sales are planned for the Pacific, Atlantic or Alaskan waters.
The rationale behind the administration’s decision to allocate water for oil and gas leasing — despite President Biden’s campaign pledge to transition away from fossil fuels — lies in the crucial role these three leases play in advancing offshore wind development. This connection is established through the Inflation Reduction Act, which links the allocation of water resources for oil and gas with the offshore wind development.
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The legislation stipulates that the Bureau of Ocean Energy Management can only grant leases for offshore wind if it has already allocated 60 million acres for oil and gas in the previous year.
The Interior Department has stated that these three lease sales are the minimum required to support the administration’s goal of achieving 30 gigawatts of offshore wind energy by 2030.
While the limited number of leases is not expected to have an immediate impact on gas prices at the pump, analysts say it sets the stage for potential challenges in the long term.
Critics of the move, such as the American Energy Alliance, express disapproval.
“While President Biden continues to blame oil and gas companies for sustained high energy prices, his Department of Interior has taken yet another step to curtail domestic production and increase reliance on foreign sources of energy,” Thomas Pyle, president of the American Energy Alliance, said.
Tags: Bureau of Ocean Energy Management, Inflation Reduction Act, Interior Department, Joe Biden, Offshore wind farms, Oil, Wind energy
SHANNON LONGWORTH: SETTING THE COURSE FOR GROWING OFFSHORE WIND ENERGY…THE BIDEN ADMINISTRATION IS TOUTING A NEW PROPOSAL–ONE RELATED TO FOSSIL FUELS.
THE ADMINISTRATION IS PLANNING FOR JUST 3 OFFSHORE OIL AND GAS LEASE SALES IN THE NEXT 5 YEARS. ALL IN THE GULF OF MEXICO — NONE IN THE PACIFIC, ATLANTIC OR THE WATERS AROUND ALASKA..
YOU MIGHT WONDER WHY THE ADMINISTRATION IS PLANNING TO LEASE ANY WATER TO OIL AND GAS WHEN PRESIDENT BIDEN PLEDGED TO MOVE THE US AWAY FROM FOSSIL FUELS DURING HIS CAMPAIGN…
PRESIDENT BIDEN: “NO MORE SUBSIDIES FOR THE FOSSIL FUEL INDUSTRY. NO MORE DRILLING ON FEDERAL LANDS. NO MORE DRILLING–INCLUDING OFFSHORE. NO ABILITY FOR THE OIL INDUSTRY TO CONTINUE TO DRILL.”
LONGWORTH: WHILE THESE THREE LEASES ARE THE SMALLEST PLAN IN RECENT HISTORY – IT’S CRUCIAL FOR OFFSHORE WIND DEVELOPMENT.’
THAT’S BECAUSE THE INFLATION REDUCTION ACT LINKS THE TWO TOGETHER.
IT ESSENTIALLY SAYS THE BUREAU OF OCEAN ENERGY MANAGEMENT CAN ONLY ISSUE A LEASE FOR OFFSHORE WIND IF IT’S ALREADY ALLOCATED 60 MILLION ACRES FOR OIL AND GAS IN THE PREVIOUS YEAR.
THE INTERIOR DEPARTMENT STATED THIS IS THE MINIMUM REQUIRED FOR THE ADMINISTRATION TO CONTINUE TOWARD ITS GOAL OF 30 GIGAWATTS OF OFFSHORE WIND ENERGY BY 2030.
IN THE MEANTIME, MANY ANALYSTS EXPECT THE PRICE OF OIL TO RISE ABOVE 100-DOLLARS A BARREL IN THE NEAR FUTURE.
AND WHILE ANY NEW LEASES WON’T HAVE AN IMPACT ON PRICES AT THE PUMP IN THE SHORT TERM, IT SETS UP POTENTIAL PROBLEMS YEARS DOWN THE LINE.
THE AMERICAN ENERGY ALLIANCE DISAPPROVES OF THE MOVE.
ITS PRESIDENT, THOMAS PYLE, ISSUED A STATEMENT, SAYING:
“WHILE PRESIDENT BIDEN CONTINUES TO BLAME OIL AND GAS COMPANIES FOR SUSTAINED HIGH ENERGY PRICES, HIS DEPARTMENT OF INTERIOR HAS TAKEN YET ANOTHER STEP TO CURTAIL DOMESTIC PRODUCTION AND INCREASE RELIANCE ON FOREIGN SOURCES OF ENERGY.”
WE’VE REPORTED EXTENSIVELY ON THE FUTURE OF OFFSHORE WIND DEVELOPMENT HERE IN THE US, SO CHECK OUT OUR OTHER STORIES JUST SEARCH OFFSHORE AT S-A-N-DOT-COM.
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