In a move that has raised concerns among energy industry groups, the Biden administration has finalized a plan to significantly curb the number of offshore oil and gas lease sales over the next five years. The Department of the Interior’s (DOI) five-year offshore oil and gas leasing program includes only three Gulf of Mexico lease sales through 2029, which is the lowest number ever included in such a plan.
The decision to limit offshore leasing has drawn criticism from industry leaders who argue that it curtails access to a critical national asset. Erik Milito, the president of the National Ocean Industries Association, expressed concerns about the White House’s disregard for energy realities and its impact on Americans. He stated that regressive policies will lead to higher prices at the pump, job losses, and a loss of geopolitical advantages in energy production to countries like Russia, Iran, and China.
The Biden administration’s plan represents a departure from past plans issued by both Democratic and Republican administrations. It not only limits offshore production but also rules out any leasing off the Alaskan coast, as well as in the Atlantic and Pacific Oceans. Critics argue that such policies force greater reliance on energy imports, including from nations with higher emissions and worse environmental standards, jeopardizing energy security and economic prosperity.
However, the administration has emphasized its commitment to building a clean energy future that ensures America’s energy independence. Interior Secretary Deb Haaland has previously stated that the Biden-Harris administration is dedicated to this goal. The plan also takes into account the need for offshore wind energy leases, which are tied to fossil fuel leasing under the Inflation Reduction Act (IRA).
The plan’s limited number of sales has raised concerns about the administration’s ability to meet its goal of developing 30 gigawatts of offshore wind by 2030. However, the DOI has permitted several large-scale offshore wind facilities in recent years, and it is expected that more will come online in the coming years.
The delay in issuing a replacement plan has been a departure from previous administrations, which typically finalized replacements immediately after previous plans expired. The Trump administration, for example, sought to hold a total of 47 lease sales across various regions. The Biden administration’s plan, in contrast, has been criticized for putting its political agenda ahead of American energy security.
Overall, the Biden administration’s decision to limit offshore oil and gas lease sales has sparked debate and concerns among industry leaders. While proponents argue that it aligns with the administration’s commitment to clean energy, critics believe it will have negative economic and geopolitical consequences. The impact of this plan on the future of offshore energy production and the nation’s energy security remains to be seen.
