Global and Regional MarketsIADC, Regulation, and LegislationNews

API appeals Gulf of Mexico lease sale ruling

The American Petroleum Institute (API) filed a notice of appeal with the US Court of Appeals for the DC Circuit of the decision by the DC District Court invalidating the results of the only federal lease sale for natural gas and oil held in 2021. The sale generated $198,511,834 in total bids.

“Today we’re taking action to preserve American energy leadership and ensure that development in the Gulf of Mexico can continue to play a critical role in meeting the nation’s energy needs while generating billions in revenue for critical conservation programs,” API Senior Vice President for Policy, Economics and Regulatory Affairs Frank Macchiarola said. “At a time of rising energy costs and heightened geopolitical tensions, the misguided decision to cancel the only lease sale held last year is contributing to significant uncertainty for U.S. natural gas and oil producers and limiting access to the affordable, reliable energy that’s needed here in the U.S. and around the world.”

An Obama-era report analyzing the effects of offshore leasing restrictions found that U.S. greenhouse gas emissions will be little affected and could increase slightly if foreign imports increased in the absence of new US offshore leasing and production. The report cites foreign energy sources would substitute for reduced American offshore supply, and that increased production and subsequent transport of foreign oil would lead to higher GHG emissions than energy produced here in the United States.

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button