The US Department of the Interior issued a draft proposed 2019-24 US Outer Continental Shelf oil and gas leasing program which would make more than 90% of the nation’s federal offshore acreage available and schedule the largest number of lease sales there in history. The current 2017-22 program enacted late in the Obama administration put 94% of the OCS off-limits to oil and gas activity, DOI officials noted.
“Today's announcement lays out the options that are on the table and starts a lengthy and robust public comment period,” US Interior Sec. Ryan Zinke said on Jan. 4 as the draft was released. “Just like mining, not all areas are appropriate for offshore drilling, and we will take that into consideration in the coming weeks.”
The draft proposed program (DPP) includes 47 potential lease sales in 25 of the 26 planning areas–19 off Alaska, 7 on the Pacific OCS, 12 in the Gulf of Mexico, and 9 on the Atlantic OCS. Inclusion of an area in the DPP does not ensure it will be included in the final program or offered in a lease sale because many decision points remain, DOI officials emphasized.
Walter D. Cruikshank, acting director at the US Bureau of Ocean Energy Management, which will oversee the program, said the 2017-22 program will be implemented until the new OCS program is approved.
Announcement welcomed
Oil and gas industry association officials welcomed the announcement.
“The ability to safely and responsibly access and explore our resources in the Arctic, Atlantic, Pacific, and the Eastern Gulf of Mexico is a critical part of advancing the long-term energy security of the US,” said American Petroleum Institute Upstream Director Erik Milito. “It will also encourage economic growth, spur manufacturing and investment, create thousands of additional US jobs, and strengthen our national security.”
Independent Petroleum Association of America Pres. Barry Russell said: “Expanding access to additional offshore reserves allows the US to better understand where production potential exists and where capital should be invested. Although this is just the first step in a long process, today’s proposal is exactly the signal industry needs to drive this work forward.”
National Ocean Industries Association Pres. Randall B. Luthi hailed the start of a “truly national discussion” about US offshore energy potential.
“To kick off a national discussion, you need a national plan–something that has been lacking the past several years,” he said. “President Trump started the offshore energy discussion with his executive order. This plan continues that dialogue.” The April executive order to which he referred reversed the former administration’s ban on Arctic oil and gas leasing and supported OCS development (OGJ Online, Apr. 28, 2017)
Karen A. Harbert, president of the US Chamber of Commerce’s Global Energy Institute, called the plan “a long-term commitment to securing our energy future” and said it would “help cement America’s role as an energy superpower, creating jobs and contributing to our economy.”
Congressional responses
Congressional energy leaders also applauded DOI’s action.
“This proposal shows President Trump and Sec. Zinke are serious about creating jobs and making America energy-dominant,” said Sen. Bill Cassidy (R-La.), a Senate Energy and Natural Resources Committee member. “Opening the Eastern Gulf of Mexico to American energy producers will create thousands of jobs in Louisiana and other Gulf Coast states and bring billions of dollars of investment to our country.”
Other federal lawmakers expressed strong opposition.
Referring to the DPP’s plans for leasing in the Eastern Gulf of Mexico and off Florida’s east coast, Sen. Bill Nelson (D-Fla.) called it “an assault on Florida’s economy, our national security, the will of the public, and the environment. This proposal defies all common sense, and I will do everything I can to defeat it.”
Contact Nick Snow at [email protected]
Nick Snow
NICK SNOW covered oil and gas in Washington for more than 30 years. He worked in several capacities for The Oil Daily and was founding editor of Petroleum Finance Week before joining OGJ as its Washington correspondent in September 2005 and becoming its full-time Washington editor in October 2007. He retired from OGJ in January 2020.
