Bipartisan momentum builds for offshore oil and gas leasing action
Written by Nick Blenkey
Image: Architect of the Capitol
Slow-marching of offshore oil and gas leasing sales by the U.S. Department of the Interior could threaten offshore wind leasing, NOIA (the National Ocean Industries Association) says, noting that Federal law mandates the occurrence of a substantial offshore oil and gas lease sale in the year preceding any new offshore wind lease award.
Now, bipartisan pressure for action on offshore O&G leasing is building. In a move applauded by NOIA, six Democrats in the House of Representatives, from districts in three state, led by Rep. Vicente Gonzalez (Texas-34) have written Secretary of the Interior Deb Haaland urging the completion of the next federal offshore oil and gas leasing program
“As you know, the Inflation Reduction Act (IRA) requires the Bureau of Ocean Energy Management (BOEM) to offer a minimum of 60 million acres for offshore oil and gas leases annually in order to issue offshore wind leases the following year, they write. “We are concerned that ongoing delays in finalizing the five-year program, including delays to required lease sales specific National Environmental Policy Act (NEPA) analyses, will interrupt the issuance of offshore wind energy leases. Action must be taken to finalize the 2023-2028 National OCS Oil and Gas Leasing Program with all 11 lease sales, complete all work necessary to conduct every Gulf of Mexico lease sale in the plan without delay, and continue with annual offshore wind lease sales in order to deploy the Administration’s goal of 30 gigawatts by 2030.”
The move was applauded by Erik Milito, president of the National Ocean Industries Association (NOIA),
“NOIA expresses our gratitude towards Congressman Gonzalez and his fellow Members of Congress for pushing for the timely completion of the next federal offshore oil and gas leasing program,” said NOIA president Erik Milito. “The reinstatement of consistent and predictable offshore oil and gas lease sales is paramount, safeguarding against potential disruptions to future offshore wind opportunities during this pivotal juncture for the industry. Sound energy policy stands as a cornerstone of our nation’s prosperity and should always serve as a unifying issue.”
“Offshore oil and gas and offshore wind have always been interconnected,” says NOIA. “Both represent intricate marine construction endeavors, requiring unique expertise and experience within the marine environment. The very companies that have pioneered the offshore oil and gas industry are now at the forefront of the emerging American offshore wind sector. It is paramount to recognize that the well-being of these companies holds the key to the prospects of both offshore oil and gas and wind energy. However, the absence of regular offshore oil and gas lease sales casts a shadow of uncertainty on their future.
“Federal law mandates the occurrence of a substantial offshore oil and gas lease sale in the year preceding any new offshore wind lease award. Regrettably, we are on the brink of yet another hiatus in offshore oil and gas lease sales. While the Interior Department is expected to unveil the next leasing program this month, it’s disconcerting to note that they have confirmed the commencement of pre-lease sale environmental assessments only after the program’s release. Typically, these processes run concurrently, and their completion can extend up to two years.
“Without swift action from the Administration, the gap in oil and gas lease sales will inevitably translate into a gap in offshore wind leasing.”
- Read the Congress members’ letter to Secretary Haaland HERE
