Biden’s scaled back offshore oil drilling plan angers all sides.

Biden's scaled back offshore oil drilling plan angers all sides.

Biden Administration Faces Criticism for Offshore Oil and Gas Leasing Plan

Offshore Oil Drilling

The Biden administration’s recently announced plan to slash offshore oil and gas leasing has drawn criticism from both the fossil fuel industry and environmentalists, highlighting the challenges of balancing national energy security and efforts to combat global warming. The plan, which includes just three sales in the Gulf of Mexico, has sparked concerns about rising fuel prices and job losses in the industry.

President Biden had pledged to end new federal leasing during his presidential campaign. However, his administration has faced legal hurdles and political pressures, including rising pump prices that could impact his chances of reelection. The new plan, unveiled by the Interior Department, reflects a compromise between these competing interests.

The National Ocean Industries Association, representing offshore oil and gas developers, expressed disappointment with the plan, calling it an “utter failure for the country.” Erik Milito, the association’s president, argues that the reduced number of sales will increase gas prices, destroy jobs along the Gulf Coast, and make the United States more reliant on oil imports. Previous five-year offshore lease programs have typically included between 11 and 41 sales, according to Interior’s U.S. Bureau of Ocean Energy Management.

Environmentalists have also criticized the plan for not going far enough to address climate change. Earthjustice President Abigail Dillen stated that committing to decades of new fossil fuel extraction is unacceptable given the current state of the climate crisis, especially following the hottest summer on record.

The Gulf of Mexico accounts for approximately 15% of U.S. crude oil production, making it a significant area for oil extraction. However, the process of going from lease issuance to actual oil production can take anywhere from four to ten years, according to the Bureau of Ocean Energy Management.

One of the reasons behind the limited number of lease sales is the connection between offshore wind power development and fossil fuel leasing under federal law. The Interior Department explained that it had chosen the minimum required sales to expand the offshore wind program, which is seen as crucial for President Biden’s plan to decarbonize the U.S. economy by 2050. The Inflation Reduction Act, a climate change law passed last year, made oil and gas lease sales a precondition for new offshore wind power auctions.

While environmentalists view this connection between offshore wind power and fossil fuel leasing as problematic, the American Petroleum Institute (API) expressed concerns that the U.S. is relinquishing its global energy production leadership. API President Mike Sommers argued that the Biden administration is giving away energy security that the country has strived for decades to achieve.

The decision to limit offshore lease sales has not only faced opposition from the fossil fuel industry but also from the U.S. Chamber of Commerce and Senator Bill Cassidy of Louisiana, a Gulf Coast senator. Senator Cassidy criticized the plan, stating that it is a “slap in the face to American energy workers and a pat on the back to Putin and OPEC dictators,” referring to Russian President Vladimir Putin and members of the Organization of the Petroleum Exporting Countries.

The final offshore oil drilling plan issued by the Interior Department represents a remarkable reduction from a 2018 proposal by the Trump administration, which had envisioned 47 lease sales, including in California and the Atlantic. The Biden administration’s plan, on the other hand, includes only three sales, scheduled for 2025, 2027, and 2029.

It is worth noting that the United States has a litigious history when it comes to drilling policy. A recent lawsuit concerning the protection of an endangered whale has prompted a U.S. appeals court to postpone a Congressionally mandated Gulf of Mexico oil and gas lease auction until November, further highlighting the complex and contentious nature of offshore drilling policies in the United States.

Despite facing criticism from both sides of the debate, the Biden administration is attempting to strike a delicate balance between energy needs and environmental concerns. As the world grapples with the urgency of combating climate change, finding the right path forward for offshore oil and gas leasing remains a challenging task for policymakers.