Oil companies offered a combined $264M for drilling rights on more than 1.6M in the Gulf of Mexico on March 29 in a sale mandated by 2022's climate bill compromise. The auction was the first in more than a year. It drew interest from industry giants - like ExxonMobil, Shell and Chevron. It could further test the loyalty of environmentalists and young voters who backed President Joe Biden in 2020 but were frustrated by his approval of the huge Willow drilling project in northern Alaska. Developing the leases for sale in the GoM could produce more than 1B barrels of oil and more 4T+ cubic feet of natural gas over a 50-year period, according to a government analysis. With oil prices falling, its uncertain how much companies would be willing to invest in new leases. There's another sale scheduled in September, but not known how many more the administration may conduct in the future. The Department of Interior sale comes two days before a deadline set in 2022's climate bill, which prohibits leasing public lands for renewable power unless tens of millions of acres are first offered for fossil fuels. It was a concession to get the support of Sen. Joe Manchin (D-W.Va.), who is a fossil fuels industry supporter. (NOLA.com 03/29/23) $264 million offered for Gulf oil under climate compromise | Environment | nola.com Afederal court will determine whether the auction was legal and if companies can proceed with drilling. (WLOX 03/29/23)
No comments:
Post a Comment