Multiple media reports say that the Biden administration said Wednesday that it would cancel three planned oil and gas lease sales in the Gulf of Mexico and the Cook Inlet area of Alaska, thus ending the sale of coastal drilling leases for the year.
Several factors led to the decision, according to a Department of Interior official, including a lack of interest from oil firms and legal challenges.
For the Cook Inlet sale, the department “will not move forwards” due to industry interest, and the department won’t hold two Gulf of Mexico lease sales “due to delays due to factors, including conflicting court rulings, that affected work on these proposed lease sales,” according to a department spokesperson.
An end-of-plan sale of federal waters leases will take place in June, according to reports from Reuters. Unless a replacement programme is put in place, the Biden administration will let the programme expire.
The announcement comes at a time when petrol prices are at an all-time high countrywide. On Tuesday, the average price for a gallon of normal gasoline in the United States was $4.37, exceeding the previous high set in early March, when Russia invaded Ukraine.
According to Biden, the U.S. will supply Europe with gas in an effort to lessen the world dependence on Russian energy in the coming weeks. This move on leasing does, however, align with Biden’s campaign commitment to combat climate change more forcefully.
On Earth Day, President Biden signed an executive order aimed at combating climate change.
On Tuesday, gas prices struck a new record high, exceeding the previous peak set in March.
For the next 40 years, the sale of the Cook Inlet lease would have allowed drilling in a region home to critically endangered beluga whales, according to Oceans Program Legal Director Kristen Monsell of the Center for Biological Diversity.
“Beluga whales in their only home, Cook Inlet, won’t have to face additional oil drilling, but Monsell believes there must be more done to safeguard these endangered whales from off-shore oil drilling. In order to rescue endangered marine species and protect coastal towns and our climate from pollution, we must stop new drilling and phase out existing drilling.
CBS News spoke with Earthjustice’s Drew Caputo, who said that the planned leases will not have an effect on gas costs for at least a decade.
As Caputo put it, “It’s excellent for the climate, which right now can’t manage new oil and gas production.” “In Cook Inlet, offshore drilling is dangerous and disruptive, which is why it is beneficial. Cook Inlet residents, especially the indigenous population, value the inlet’s natural beauty, therefore it’s a win-win situation for everyone. As a result, it’s a good thing to have.”
Fossil fuel enthusiasts disagree with this.
“Another indication of the administration’s lack of commitment to oil and gas production in the United States,” said Frank Macchairola, a top official with the American Petroleum Institute, in a statement to CBS.
NRC spokesperson Mike Berg pointed out that gas prices are already at record levels in the United States, and he added: “”Democrats appear determined to make things worse,” said one observer.
It would have spanned more than a million acres under the Alaskan lease. A lack of interest in the area’s lease sales was noted by the Hill in 2006, 2008, and 2010, when lease sales were discontinued.