Industry Voices Concerns
President Biden’s plan to severely limit offshore leasing has faced criticism from industry leaders. Erik Milito, the president of the National Ocean Industries Association, argues that the approach curtails access to a critical national asset and ignores energy realities. He believes that such policies harm Americans by driving up fuel prices, destroying jobs, and relinquishing the geopolitical advantages of energy production.
Global Implications
Milito highlights that restricting offshore production in the U.S. may lead to increased imports from nations with higher emissions and worse environmental standards. This jeopardizes energy security, economic prosperity, and efforts to combat climate change. These concerns raise questions about the administration’s commitment to its stated goals.
The Plan at a Glance
Under the Department of the Interior’s (DOI) plan, three sales of parcels in the Gulf of Mexico will occur in 2025, 2027, and 2029. The plan also excludes leasing off the Alaskan coast, as well as in the Atlantic and Pacific Oceans, deviating from prior plans. The DOI suggests that even more restrictive measures were possible without the legislation linking offshore wind energy leases to fossil fuel leases.
Focus on Renewable Energy
The DOI’s plan aims to ensure the development of 30 gigawatts of offshore wind energy by 2030. While the U.S. currently has limited offshore wind projects, several large-scale facilities are underway. However, critics argue that the plan’s focus on renewables comes at the expense of traditional energy sources.
Political Agenda vs. Energy Security
Senate Energy and Natural Resources Committee Chairman Joe Manchin expressed disappointment in the administration’s decision to prioritize its political agenda over American energy security. Manchin believes that granting minimal oil and gas leases will also result in minimal renewables leases due to the legislation’s linkage between the two. He warns that both are necessary for a comprehensive energy approach.
Departure from Precedent
The DOI’s plan departs from the previous pattern of immediately finalizing a replacement plan after the expiration of the previous one. In 2017, the most recent plan included over 10 offshore lease sales. The Trump administration sought even more lease sales across various regions. This new plan represents a significant shift in approach.
Under the Outer Continental Shelf Lands Act, the federal government must issue plans every five years to outline potential lease sales. The expiration of the previous plan in June 2022 prompted the development of a new plan, which has drawn both support and criticism.
