Two particularly troubling examples of decisions that threatened long-term US offshore production and national security, and endorsed higher oil prices:
Sale 257 court ruling: In 2022, a Federal judge ruled in favor of higher oil prices. In response to an OCS Sale 257 lawsuit, the judge agreed with the NGO plaintiffs that BOEM failed to consider the “positive” effect that higher prices (the logical result of lower production) would have on reducing demand. In particular, the plaintiffs asserted that BOEM failed to consider the effect that reduced production (and higher prices) would have on foreign consumption and the associated GHG emissions.
The judge not only decided in favor of the plaintiffs, but ruled that BOEM’s omission was so serious that the lease sale had to be vacated. The judge’s decision was subsequently overturned by legislative action.
OCS Leasing Policy: The official leasing policy, as articulated in the 2024-2029 OCS Leasing Program (published 9/2023), was to phase out oil and gas production:
The long-term nature of OCS oil and gas development, such that production on a lease may not begin for a decade or more after lease issuance and can continue for decades, makes consideration of net-zero pathways relevant to the Secretary’s determinations on how the National OCS Program best meets the Nation’s energy needs. (p. 6, 2024-2029 Leasing Program)
The Leasing Program prioritized “net-zero pathways” over cost and national security considerations. The clear objective was to prevent new production. Absent legislative action, we would have had a 5 year leasing plan with no lease sales!
Bud's Offshore Energy (BOE) 