WASHINGTON (AP) — In a notable move to ramp up fossil fuel production, oil companies recently bid a total of $279 million for drilling rights in the Gulf of Mexico. This sale marks the first of many planned under a Republican-led initiative aimed at increasing U.S. fossil fuel output.
The recent auction comes in conjunction with a controversial announcement from the Trump administration that permits new drilling off the coasts of Florida and California, which has faced opposition even from some Republicans concerned about tourism and environmental risks.
The sale was stipulated by a tax-and-spending bill enacted over the summer, resulting in companies being charged a 12.5% royalty on oil extracted from the newly leased grounds — the lowest royalties for deep-water drilling since 2007.
Major industry players, including Chevron, Shell, and BP, actively participated in the bidding process. Despite the high bids, this recent auction saw a decline of more than $100 million compared to the previous lease sale conducted during the Biden administration in December 2023.
Laura Robbins, acting director of the Gulf region for the Bureau of Ocean Energy Management (BOEM), hailed the sale as a significant advancement towards restoring U.S. energy dominance and promoting responsible offshore energy production.
However, environmental advocates express serious concerns regarding the implications of this sale for Gulf wildlife, citing risks of oil spills which are a common and damaging occurrence in the area. Notably, the ongoing environmental challenges include the catastrophic 2010 Deepwater Horizon disaster, which not only claimed lives but also led to widespread ecological devastation.
Rachel Matthews from the Center for Biological Diversity criticized the sale, highlighting existing issues with oil companies' environmental practices and their historical failures in cleaning up after spills.
With the Gulf already saturated with oil rigs and infrastructure, Erik Milito from the National Ocean Industries Association remarked that the latest lease sale signals the Gulf's reopening for further drilling. This decision aligns with a broader executive directive aimed at fast-tracking oil and gas development in federal offshore areas, aimed at boosting energy security and creating jobs.
Nonetheless, critics, including Earthjustice attorney George Torgun, raise alarms over the lack of comprehensively assessing the potential environmental hazards and risks posed to vulnerable marine life, such as the endangered Rice’s whale.
The recent lease sale falls under scrutiny, as litigation continues to challenge previous sales, bringing uncertainty into the future of offshore drilling in the Gulf. Experts fear this trend may result in long-term detrimental consequences for the environment and local communities.
The recent auction comes in conjunction with a controversial announcement from the Trump administration that permits new drilling off the coasts of Florida and California, which has faced opposition even from some Republicans concerned about tourism and environmental risks.
The sale was stipulated by a tax-and-spending bill enacted over the summer, resulting in companies being charged a 12.5% royalty on oil extracted from the newly leased grounds — the lowest royalties for deep-water drilling since 2007.
Major industry players, including Chevron, Shell, and BP, actively participated in the bidding process. Despite the high bids, this recent auction saw a decline of more than $100 million compared to the previous lease sale conducted during the Biden administration in December 2023.
Laura Robbins, acting director of the Gulf region for the Bureau of Ocean Energy Management (BOEM), hailed the sale as a significant advancement towards restoring U.S. energy dominance and promoting responsible offshore energy production.
However, environmental advocates express serious concerns regarding the implications of this sale for Gulf wildlife, citing risks of oil spills which are a common and damaging occurrence in the area. Notably, the ongoing environmental challenges include the catastrophic 2010 Deepwater Horizon disaster, which not only claimed lives but also led to widespread ecological devastation.
Rachel Matthews from the Center for Biological Diversity criticized the sale, highlighting existing issues with oil companies' environmental practices and their historical failures in cleaning up after spills.
With the Gulf already saturated with oil rigs and infrastructure, Erik Milito from the National Ocean Industries Association remarked that the latest lease sale signals the Gulf's reopening for further drilling. This decision aligns with a broader executive directive aimed at fast-tracking oil and gas development in federal offshore areas, aimed at boosting energy security and creating jobs.
Nonetheless, critics, including Earthjustice attorney George Torgun, raise alarms over the lack of comprehensively assessing the potential environmental hazards and risks posed to vulnerable marine life, such as the endangered Rice’s whale.
The recent lease sale falls under scrutiny, as litigation continues to challenge previous sales, bringing uncertainty into the future of offshore drilling in the Gulf. Experts fear this trend may result in long-term detrimental consequences for the environment and local communities.
