As gas prices remain near record highs, Democrat President Joe Biden’s administration has released a plan to block new offshore oil drilling in the Atlantic and Pacific oceans, while potentially allowing limited expansion in the Gulf of Mexico and Alaska’s south coast.
“The proposed plan puts forward several options from no lease sales up to 11 lease sales over the next five years. Like the current program finalized in 2016, it removes from consideration the federal waters off the Atlantic and Pacific coasts while inviting public comment on 10 potential sales in the Gulf of Mexico and one in the Cook Inlet off south-central Alaska. A Proposed Program is not a decision to issue specific leases or to authorize any drilling or development,” said Secretary of the Interior Deb Haaland. “From Day One, President Biden and I have made clear our commitment to transition to a clean energy economy. Today, we put forward an opportunity for the American people to consider and provide input on the future of offshore oil and gas leasing. The time for the public to weigh in on our future is now.”
The Proposed Program follows the Draft Proposed Program (DPP) “released in 2018 by the previous administration proposed 47 lease sales across 25 of 26 OCS planning areas. Under the Proposed Program announced today, the Secretary significantly narrowed the area considered for leasing to the Gulf of Mexico and Cook Inlet, where there is existing production and infrastructure,” the Interior Department said in a press release.
The news comes shortly after the Biden administration decided to target the largest oil-producing area in the United States: the Permian basin, which is located in western Texas and southeastern New Mexico.
According to a regulatory notice, the Environmental Protection Agency (EPA) is planning to label parts of the Permian Basin as violating federal air quality standards for the ozone.
“EPA is now considering a discretionary redesignation for (portions of) these counties in New Mexico and Texas for the 2015 ozone NAAQS under Clean Air Act section 107(d)(3) based on current monitoring data and other air quality factors,” the Biden administration wrote.
The EPA’s plan will lead to new permitting requirements and additional scrutiny of oil drilling operations.
“The possible regulatory action adds yet another element of uncertainty to the oil industry, which is already facing an unknown future while being chastised for not investing more to produce more—whether that’s refining or drilling,” oilprice.com explained.
