UK Leasing

Fed plans to sell Gulf offshore oil lease for November

NEW ORLEANS (AP) – President Joe Biden’s administration said it followed a court order to schedule a sale of offshore oil and gas leases for the Gulf of Mexico after the Democratic president’s moratorium on new oil leases and gas on federal land was blocked by a judge.

The sale will be broadcast live from New Orleans on November 17, the Bureau of Ocean Energy Management said in a press release on Thursday. The call for tenders will only be made by post; walk-in offers will not be accepted, he said.

The agency postponed lease sales slated for March to comply with Biden’s decree to tackle climate change. Scientists call for immediate action reduce greenhouse gas emissions to avoid the worst consequences of global warming, including devastating storms, floods, forest fires and droughts.

But Louisiana and 12 other states filed a lawsuit, and in June a federal judge find that the government had omitted the steps required for such actions. The administration said in August he would comply by appealing the judge’s order.

“The Biden Harris administration is continuing its full review of the shortcomings associated with its offshore and onshore oil and gas leasing programs,” the office statement said.

The sale will cover approximately 136,000 square miles (352,000 square kilometers) ranging from 3 to 231 miles (5 to 370 kilometers) off the Gulf of Mexico with water depths ranging from 9 to over 11,115 feet (3 to 3,400 meters).

Less than 2% of the available aquatic funds were rented in August 2020.

The agency said the lease clauses will protect biologically sensitive resources, mitigate potential negative effects on protected species, and avoid potential conflicts between oil and gas development and other activities and users in the Gulf of Mexico.

Alabama, Alaska, Arkansas, Georgia, Mississippi, Missouri, Montana, Nebraska, Oklahoma, Texas, Utah and West Virginia joined Louisiana in contesting the suspension of the sale of the lease.

Leave a Reply

Your email address will not be published.