Page 10 - NorthAmOil Week 27 2022

NorthAmOil POLICY NorthAmOil

US Department of the Interior releases

2023-2028 offshore drilling plan

THE US Department of the Interior released its (API), expressed concern that Washington had
new five-year offshore drilling plan on July 1, left room for the possibility of not holding any
saying it would carry out no more than 11 new new offshore lease sales. “Because of their fail-
potential Atlantic and Pacific lease sales during ure to act, the US is now in the unprecedented
the 2023-2028 period. position of having a substantial gap between
In a statement, the department explained programmes for the first time since this process
that no more than 10 of these lease sales would began in the early 1980s, leaving US producers
cover acreage in the Gulf of Mexico, while no at a significant disadvantage on the global stage
more than one would cover acreage in the and putting our economic and national security
northern part of the Cook Inlet Planning Area at risk,” he commented.
off the coast of Alaska. These numbers are Similarly, Leslie Beyer, CEO of the Energy
unchanged from those listed in the five-year Workforce & Technology Council, blasted the
programme that the US government finalised department for restricting “access to two of our
in 2016, it noted. bordering oceans.” Under current conditions of
The lease sales will not go forward until the high oil prices and worries about energy secu-
Department of the Interior develops and secures rity, he said, the US government should seek to
approval for a final programme that is in com- expand access to offshore exploration opportu-
pliance with Section 18 of the Outer Continental nities. “[The] Department should be expanding
Shelf Lands Act (OCSLA), the statement said. offshore drilling access to boost production to
“OCSLA authorises the Secretary of the meet demand instead of limiting leases and con-
Interior to establish a schedule of lease sales for tinuing to disincentivise domestic production,”
a five-year period by balancing specific factors he stated.
of OCS regions and selecting the size, timing Erik Milito, the president of the National
and location of OCS lease sales that best meet Ocean Industries Association (NOIA), also
regional and national energy needs and con- spoke critically of the proposed programme,
siders the impact of oil and gas exploration on noting that it would lead lease sales to be sus-
the marine, coastal and human environments,” pended for at least 12 months. He urged the
it said. “There is no requirement under OCSLA administration of US President Joe Biden to take
that mandates any sales in any locations, nor the actions necessary to ensure that new acreage
does the law prescribe any specific timing for be made available to investors every year.
the development of a five-year plan.” “We are in the middle of a substantial, unnec-
The draft lease sales programme will also be essary and avoidable gap in offshore leasing that
opened up for public comment over a 90-day is having serious impacts for both near-term
period, the department said. and long-term investment in US energy pro-
The department’s plan has already drawn duction,” he remarked. “The gap in offshore
criticism, with industry groups saying that the lease sales – and all of negative impacts associ-
new policy poses risks to US vital interests. ated with reduced domestic production – will
For example, Frank Macchiarola, senior vice continue for the foreseeable future until a final
president of policy, economics and regulatory leasing programme is in place and lease sales
affairs of the American Petroleum Institute resume.” ™

Most of the potential lease sales will be in the Gulf of Mexico (Images: BOEM)

P10 www. NEWSBASE .com Week 27 07•July•2022