New U.S. Offshore Oil and Gas Plan Opens High Arctic Waters for Drilling

 

The U.S. Department of the Interior has announced that it is withdrawing the Biden-era offshore leasing plan for 2024-29 and instituting a new plan. 

The proposal puts forward a schedule for as many as 34 lease sales covering 1.27 billion acres. The proposed areas cover waters off the coast of Alaska, the U.S. Gulf and California. The map includes some novel new additions that depart from recent policy. The first is a new "High Arctic" lease area in the icy Arctic Ocean, extending out to roughly 80 degrees north latitude - a frigid and inaccessible region visited only by icebreakers. Moving south, the plan proposes leasing in every possible block off mainland Alaska and the Aleutian Chain, from border to border (with the exception of Bristol Bay).

On the U.S. West Coast, it proposes three lease areas off the coast of California, two of which would begin auctions in 2027. Political commentators have noted that offshore leasing would be an effective retaliatory measure against California's governor, a vocal opponent of the administration.

In the Gulf, the lease areas cover the western and central regions from Texas to Alabama, which are routinely on offer at auction. For the first time in years, Interior also plans to offer lease areas off Florida, an idea which has been consistently opposed by the state's Republican governor and its congressional delegation. Atlantic waters off the U.S. Southeast - where oil and gas exploration is heavily opposed by Republican-led state governments - were excluded. 

The lease plan received positive reviews from the offshore industry, which stands to benefit from a faster tempo of auctions and a broader geographic reach. 

"After years of delay in federal leasing, this is a historic step toward unleashing our nation’s vast offshore resources," said Mike Sommers, president and CEO of the American Petroleum Institute. "We applaud Secretary Burgum for laying the groundwork for a new and more expansive five-year program that unlocks opportunities for long-term investment offshore and supports energy affordability at a time of rising demand at home and abroad."

"While the Central and Western Gulf . . . remain core areas for investment and energy production, a forward-looking approach that evaluates new areas ensures the U.S. remains competitive and secure in meeting future energy needs," said Erik Milito, head of the National Ocean Industries Association (NOIA). "Energy demand is on the rise and America’s offshore basins are a shining opportunity for U.S. competitiveness and leadership."

Environmental groups have given the lease plan critical reviews. 

"Trump’s plan would risk the health and well-being of millions of people who live along our coasts. It would also devastate countless ocean ecosystems that both humans and wildlife rely on. This administration continues to put the oil industry above people, our shared environment, and the law," said Earthjustice senior attorney Brettny Hardy.