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Gulf coast is frozen and U.S. government looks at permanent oil and gas ban for GOM

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  • By Rig Lynx
  • Feb 17, 2021
  • Category : Trending
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The Bureau of Ocean Energy Management (BOEM) announced that it is rescinding the Record of Decision (ROD) for the Gulf of Mexico (GOM) Oil and Gas Lease Sale 257. The decision pauses planning for the proposed sale, which was expected to occur this March.


The ROD is being rescinded in response to Executive Order 14008, “Tackling the Climate Crisis at Home and Abroad. The order, which was signed by President Biden on Jan. 27, directs the Secretary of the Interior to pause new oil and gas leasing on public lands and offshore waters pending completion of a comprehensive review of Federal oil and gas activities.


A Federal Register notice formally rescinding the ROD is forthcoming.


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“Under a permanent leasing ban, GOM oil and gas production would drop from the 2.34 million barrels of oil equivalent (boe) per day, which we had in 2019, to 910,000 boe per day by 2040,” Milito told Rigzone.


“Of course, with declining production there is less of a need for companies to retain workers or to keep investing in the GOM. Industry investments would shrink from about $27.7 billion in 2019 to $12.1 billion 2040, with that comes a reduction of close to 195,000 jobs that are good paying, accessible and have historically been an economic lifeline that many families or communities would not normally have access to,” Milito added.


The NOIA president warned that if Biden’s lease pause evolved into an offshore permitting ban, the GOM’s decline would progress more rapidly. “A permitting ban would be a draconian energy policy that would quickly gut jobs, investment, energy production and environmental protection and emissions progress,” Milito said.


Source: Rigzone and BOEM


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