Page 11 - NorthAmOil Week 09 2023

NorthAmOil POLICY NorthAmOil

Biden administration schedules

next Gulf lease sale

GULF OF MEXICO THE US Bureau of Ocean Energy Management the IRA, the agency said.
(BOEM) has announced that it will hold an oil The lease sale is specific for oil and gas explo-
and gas lease sale in the Gulf of Mexico on March ration and development, not other uses. Later
29, 2023. this year the US will hold a separate lease sale for
The sale was required by the Inflation Reduc- wind development tracts in the Gulf – the first
tion Act (IRA), signed into law by US President ever for the region.
Joe Biden in August 2022. The sale is “vital to our national security
Lease Sale 259 will offer around 13,600 blocks interests and will contribute important energy The IRA mandated
across 73.3mn acres (296,635 square km) in the supplies amid tight global demand,” said the
western, central and eastern planning areas on National Ocean Industries Association’s presi- that the BOEM
the US Outer Continental Shelf (OCS). dent, Erik Milito.
The IRA mandated that the BOEM hold “Our national energy needs clearly support a hold Lease Sale
Lease Sale 259 no later than March 31, 2023, the commitment to continued US offshore energy
agency noted. development,” he added. “US Gulf of Mexico off- 259 no later than
The BOEM must receive all bids via the US shore energy production is a key component of a March 31.
Postal Service only no later than 10 am Central national energy strategy that will ensure Ameri-
Daylight Time on March 28, 2023. cans can continue to have access to fundamental
In January, the BOEM published a final sup- domestic energy that is produced safely, sustain-
plemental environmental impact statement for ably and responsibly.”
the lease sale, which analysed the environmental The most recent oil and gas sale in the Gulf
resources and identified robust mitigation meas- was held in November 2021 but afterwards inval-
ures to be considered in leasing the area. idated by a federal judge. The bids were, however,
The lease sale terms include stipulations to reinstated in the IRA in a compromise to obtain
mitigate potential adverse effects on protected moderate Democrat support for the measure,
species and to avoid potential conflicts with which allocates around $370bn to addressing
other uses of the ocean. climate change.
The BOEM’s proposed economic terms According to the IRA, the BOEM must hold
are designed to encourage “diligent” devel- another lease oil and gas sale by September 2023.
opment while ensuring fair market value to The deep waters of the Gulf generate about 97%
taxpayers and maintaining compliance with of all US OCS oil and gas production.™

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