Page 9 - NorthAmOil Week 06 2022
P. 9
NorthAmOil POLICY NorthAmOil
Biden administration pushes
on with lease sale plans
US THE administration of US President Joe Biden is suspending Lease Sale 257, was the subject of a
continuing to plan for future federal oil and gas lot of internal discussions at the DoI, but did not
lease sales despite a court ruling in January that provide a timeline for resolving the matter.
invalidated the first lease sale it held. Meanwhile, the American Petroleum Insti-
The January 27 ruling requires the Bureau tute (API), an industry group, said this week that
of Ocean Management (BOEM), part of the it would appeal against the court ruling invali-
US Department of the Interior (DoI), to come dating Lease Sale 257. The group filed a notice
up with more estimates of potential greenhouse of appeal with the US Court of Appeals on Feb-
gas (GHG) emissions before it can resume Lease ruary 8.
Sale 257. This week, Biden’s nominee for the role “An Obama-era report analysing the effects
of DoI assistant secretary for land and minerals of offshore leasing restrictions found that US
management, Laura Daniel-Davis, told the US greenhouse gas emissions will be little affected
Senate Energy and Natural Resources Commit- and could increase slightly if foreign imports
tee that the ruling did not stop the entire leasing increased in the absence of new US offshore
programme from moving forward. Indeed, the leasing and production,” the group stated. “The
DoI has to proceed with federal lease sales under report cites foreign energy sources would sub-
a previous court ruling, from June 2021, which stitute for reduced American offshore supply,
required the department to resume the sales after and that increased production and subsequent
they were suspended while a review into the pro- transport of foreign oil would lead to higher
gramme was being carried out. GHG emissions than energy produced here in
Daniel-Davis said the latest court ruling, the United States.”
PROJECTS & COMPANIES
Canadian government rejects
Quebec LNG project
QUEBEC THE Canadian government has rejected GNL gas (GHG) emissions or that it would help with
Québec’s Énergie Saguenay LNG project. The the transition to greener forms of energy. The
move follows a rejection from the provincial province also required the project to have suf-
government of Quebec in July 2021 and could ficient public support, but after it failed to meet
spell the project’s demise. Quebec’s first two criteria, it did not analyse the
Canada’s Minister of Environment and Cli- third.
mate Change, Steven Guilbeault, announced the GNL Québec cannot proceed with the pro-
decision on February 7, based on the findings of ject without the relevant provincial and federal
an environmental assessment report from the approvals, but the IAAC said that the federal
Impact Assessment Agency of Canada (IAAC). government’s decision does not prevent GNL
The report cited “significant adverse environ- Québec from submitting new project proposals
mental effects” related to an increase in green- and does not rule out eventual development of
house gas (GHG) emissions. It was referred to the project. Nonetheless, the path forward now
the Governor in Council, who found that these looks even more challenging and it would not be
effects were not justified in this instance. surprising if the company opts to abandon the
“The Énergie Saguenay Project underwent a project.
rigorous review that clearly demonstrates that The CAD14bn ($11bn) Énergie Saguenay
the negative effects the project would have on project is designed to have the capacity to export
the environment are in no way justifiable,” stated 11mn tonnes per year (tpy) of LNG from Can-
Guilbeault. ada’s East Coast. Western Canadian natural gas
The government of Quebec rejected the would have been used for feedstock.
project on similar grounds last year. It said that The government’s rejection of the project also
GNL Québec had failed to prove that the scheme spells bad news for a planned 780-km pipeline
would lead to a reduction in global greenhouse designed to serve the proposed terminal.
Week 06 10•February•2022 www. NEWSBASE .com P9
