In Face of Record Gas Prices, Biden Cancels Oil-and-Gas Drilling Leases in Gulf of Mexico, Alaska Coast
The Biden administration canceled plans to auction drilling rights in three regions off the U.S. coastline later this year, adding more friction to an uneasy relationship with the oil industry during a period of high gasoline prices.
The decision to cancel lease sales for two regions in the Gulf of Mexico and one off the coast of Alaska leaves oil-and-gas companies facing a blackout period of unknown length for access to new drilling spots in valuable offshore acreage.
A five-year schedule for offshore lease sales expires at the end of next month, and the Interior Department has yet to propose a new one. Canceling the pending sales with no new schedule yet proposed could mean the industry now faces years between successful federal offshore auctions.
“The lack of new lease sales will lower future supplies, which will keep energy prices high and drive inflation for years to come,” Marty Durbin, president of the energy arm of the U.S. Chamber of Commerce, said in a statement. “While some in the Administration have called for more domestic production, this action sends exactly the wrong signal to producers and markets.”
Wall Street Journal Article HERE.