Page 5 - NorthAmOil Week 30 2022

NorthAmOil COMMENTARY NorthAmOil

saying that there had been a lack of interest in the Biden’s 50% goal, but significant progress.
Cook Inlet acreage. Citing the offshore hydrocarbons leasing
Meanwhile, the Interior Department’s requirements before a solar or wind auction can
November GoM auction (Lease Sale 257) is to be proceed, Nicole Whittington-Evans, the Alaska
reinstated after a federal judge ruled that the gov- director at Defenders of Wildlife, said: “I think
ernment had failed to properly assess the climate the Alaska provisions will really greatly reduce
impact of issuing the licences. If passed, the bill our achievements, in terms of climate, with this
would compel the acceptance of the highest valid deal […] that is very significant and really, you
bids lodged during the auction period within 30 know, does not seem like a great trade-off for
days and potentially raising $191.7mn. Alaska.”
The Interior Department must hold Lease The Alaska Wilderness League said the bill
Sales 258 (Cook Inlet) and 259 (GoM) no later was “generally welcome news” in the bid to
than December 31 this year, and 261 (also GoM) reduce emissions, but conservation director
by September 30, 2023. Kristen Miller said no bill “should be finalised
Staunch support for oil and gas was also inti- without a provision to repeal the failed leasing
mated by the inclusion of clauses that mean the programme in the Arctic National Wildlife Ref-
Interior Department can only issue new licences uge […] We will explore every option to see this
for onshore solar and wind on federal land if an provision included in a final reconciliation bill.”
onshore oil and gas bid round has been held in The Washington Examiner quoted an off-
the preceding four months. In the offshore, the shore industry source who called the bill “a
prerequisite level of oil and gas leasing is 60mn complete surprise, especially considering how
acres (243,000 square km) in the 12 months involved the package is and how public the Build
prior. Back Better blow-up was”.
It may be that the element of surprise may
Reaction work in the deal’s favour, with Dyani Chapman,
Unsurprisingly, reaction to the bill has varied Alaska organiser at Environment America,
significantly. saying it offers “one of the best federal tools to
Jesse Jenkins, leader of the REPEAT Project at tackle climate change.” Striking a philosophical
Princeton University, told NPR: “It really makes tone, she concluded: “The bill obviously isn’t
me incredibly optimistic […] It doesn’t get us all perfect from an environmental standpoint, but
the way there on its own, but it keeps us in the ultimately this bill will do more to protect our
climate fight, and it puts us within a close enough climate than any legislation ever passed.”
distance that further executive action, state and Amendments to the pact appear likely, with
local government efforts and private sector lead- reports suggesting influential senators will insist
ership could plausibly get us across the finish line on the removal of the move on carried interest.
by 2030.” In its present form, though, the deal seems to
Democrats have said that the bill could see include ‘something for everyone’. It remains to
the US reduce its greenhouse gas (GHG) emis- be seen whether this will be enough to prove
sions by 40% from 2005 levels by 2030 – short of successful.™

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