The Biden administration will auction oil drilling rights to 80 million acres in the U.S. Gulf of Mexico days after joining a global agreement that for the first time targeted fossil fuels as the main driver of global warming, the administration said on Nov. 17.
The sale by the Department of Interior will be the first under President Joe Biden, whose administration paused drilling sales under a promise to end development on federal properties. But Biden lost a court fight to oil-producing states that sued to reinstate the sales.
The administration has appealed and a suit by environmental groups seeking to halt the sale is pending. The U.S. is moving ahead to hold onshore lease auctions in several states early next year.
Interior's Bureau of Ocean Energy Management will auction almost all available unleased Gulf of Mexico blocks, 80 million acres, at a live-streamed event on Nov. 17.
It will be the first opportunity to test the oil and gas industry's demand for Gulf acreage with energy prices at multiyear highs. U.S. crude futures on Nov. 16 settled at $80.76 a barrel, up 95% in the last 12 months.
The Trump administration's final Gulf sale, held last November, generated a modest $121 million in high bids. But oil companies Royal Dutch Shell, BP and Chevron are seizing on the higher prices to advance offshore projects.
Despite the court-ordered resumption of auctions, Interior spokesperson Melissa Schwartz said the agency was "conducting a more comprehensive analysis of greenhouse gas impacts from potential oil and gas lease sales than ever before."
Environmentalists called for Biden to halt the sale via executive order. "Biden has the authority to stop this, but instead he’s casting his lot in with the fossil fuel industry," said Kristen Monsell, senior attorney for the Center for Biological Diversity.
Ocean conservation group Oceana said the administration should "explore every opportunity to uphold the president’s commitment to protecting our communities, our climate, and our economy from the threat of drilling."
Recommended Reading
Understanding the Impact of AI and Machine Learning on Operations
2024-12-24 - Advanced digital technologies are irrevocably changing the oil and gas industry.
Halliburton Secures Drilling Contract from Petrobras Offshore Brazil
2025-01-30 - Halliburton Co. said the contract expands its drilling services footprint in the presalt and post-salt areas for both development and exploration wells.
Small Steps: The Continuous Journey of Drilling Automation
2024-12-26 - Incremental improvements in drilling technology lead to significant advancements.
Digital Twins ‘Fad’ Takes on New Life as Tool to Advance Long-Term Goals
2025-02-13 - As top E&P players such as BP, Chevron and Shell adopt the use of digital twins, the technology has gone from what engineers thought of as a ‘fad’ to a useful tool to solve business problems and hit long-term goals.
Novel EOR Process Could Save Shale from a Dry Future
2024-12-17 - Shale Ingenuity’s SuperEOR, which has been field tested with positive results, looks to remedy the problem of production declines.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.