Plans Underway to Sell Offshore Oil Leases on Previously Unavailable U.S. Coastlines
The previous regime is considering selling offshore oil drilling leases in parts of the U.S. coast not touched for decades. These areas, which could be open for business as early as 2026, include regions off the coasts of New England, the Carolinas, and California.
While Texas, Louisiana, and certain parts of Alaska are familiar with offshore oil leases, the Atlantic coast has no active oil leases, and California hasn't seen a new oil lease since 1984.
Opening Up Protected Lands
The past administration also announced the reopening of 1.56 million acres in the Coastal Plain of the Arctic National Wildlife Refuge to oil and gas leasing. This move undoes the current administration's restrictions on Arctic oil drilling.
This policy reversal was harshly criticized by Democrats. A senior senator from Massachusetts accused the previous administration of prioritizing the interests of fossil fuel industry donors over energy dominance. He called for an immediate reversal of this decision, declaring that the Arctic Refuge was not for sale.
The Process of Leasing
The National Outer Continental Shelf Oil and Gas Leasing Program, which issues oil leases every five years, is currently assessing new oil leases. The current administration's plan had a record-low number of leases, with only three in total.
Documents revealing the potential timeline for leasing each tract of seafloor also suggested that state governments were generally against offshore drilling. If the Interior Secretary approves and advances the plan, California could witness lease sales as early as 2027. The Beaufort Sea in Alaska, which includes the Arctic National Wildlife Refuge, could start seeing lease sales as early as 2026. Once the lease terms are agreed upon, a company then has five to ten years, depending on the water depth, to explore and develop oil and gas production.
Public Response and Government Pushback
The past administration sought public feedback in April for a new five-year gas leasing policy. The process attracted over 34,000 comments and triggered concerns from lawmakers of both parties, including Congress members and state governors, about offshore drilling.
North Carolina and South Carolina's governors jointly opposed the idea. They pointed out the broad bipartisan consensus against offshore drilling due to the economic and environmental risks it poses to their states. The governor of South Carolina further emphasized his position in a letter, highlighting that every coastal municipality in South Carolina had passed a resolution against offshore oil and gas exploration activities. He argued that the risk of negative environmental impact was too high to accept.
A Republican Congresswoman running for the governorship of South Carolina also expressed similar concerns. She noted the widespread bipartisan agreement in her state against offshore drilling.
Previous Attempts and Future Expectations
During its first term, the previous administration attempted to open new offshore oil leases but retracted the plan following criticism from lawmakers in Florida, North Carolina, and South Carolina. Despite this, offshore drilling bans were put in place around these states just before the 2020 election. However, it remains uncertain whether these bans will continue in the Carolinas.
The current administration issued a record low number of offshore oil leases and withdrew 625 million acres along the Pacific, Atlantic, and Alaska coasts from offshore oil development. However, the previous administration reversed these withdrawals. Additionally, a federal court in Louisiana recently ruled that these withdrawals were illegal.
Offshore oil leases have been unpopular for some time. From 1981 to 2008, Congress imposed a moratorium on drilling on both coasts and the eastern Gulf. An executive order from a past president also prevented offshore drilling until 2008, when the order was lifted by his son.
The Department of Interior is expected to release its first proposal on this issue shortly. This will be followed by two more comment periods before the final plan is proposed and implemented.