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Posts Tagged ‘DOI’

The Department of the Interior (Interior) confirmed today that the Department of Justice (DOJ) has appealed the preliminary injunction entered by the district court in Louisiana v. Biden, which enjoined Interior from implementing the pause in new federal oil and gas leasing 

DOI statement 8/16/21

The day after the fall of Kabul and 5 days after the White House urged OPEC to increase production, DOI reiterated the Administration’s support for a pause in oil and gas leasing on Federal lands (including the OCS). Given the increased risk of long-term oil supply uncertainty, rigid support for a blanket leasing pause would not seem to be a prudent policy position at this time.

DOI argues that greenhouse gas (GHG) emissions must be curtailed, but reductions in domestic production would increase the demand for imports with higher GHG intensity. Reductions in deepwater Gulf of Mexico production, which has low GHG intensity and other environmental advantages (few dispersed facilities distant from shore), would be particularly detrimental. Of course, any public policies that discourage natural gas production would also have distinct air emissions costs.

If supply restrictions increase the price of oil, net reductions in oil consumption and GHGs could be achieved. However, as evidenced by the recent appeal for increased OPEC production, higher oil prices are not consistent with Administration policy.

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While C-SPAN has broadcast some of the proceedings, the Deepwater Horizon Joint Investigation hearings have inexplicably not been streamed live by the Coast Guard (USCG) and Department of the Interior (DOI).  The National Commission and Chemical Safety Board streamed their hearings live, but the USCG and DOI have not done so.  Why? This is perhaps the most significant accident in the history of the US offshore oil and gas program, and the most notable worldwide offshore disaster since Piper Alpha in 1988. Eleven men died on the Deepwater Horizon.  Economic costs will total in the tens of $billions. Major regulatory changes, some of which don’t appear to address identified risks, are being imposed.

The upcoming hearings are particularly important because the BOP issues that will be discussed have enormous international significance. In this era, the world shouldn’t have to travel to New Orleans to observe the hearings, rely on sketchy press reports, or wait months for transcripts to be released. (And how is it that the Montara Inquiry Commission in Australia was able to post transcripts within hours after the conclusion of each day’s hearing?)

Accident prevention is dependent on complete and timely information.  Had more people paid attention to Montara, Macondo may have been prevented. The upcoming Deepwater Horizon BOP hearings are of critical importance, and should be streamed so that all interested parties can follow the proceedings.

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“The goal of our efforts is a culture of safety, in which protecting human life and preventing environmental disasters are the highest priorities, while making leasing and production safer and more sustainable,” said Assistant Secretary Wilma Lewis, who chaired the Safety Oversight Board.

The report of the Department of the Interior’s Safety Oversight Board has been posted on the DOI website.  The report recommends certain improvements in DOI’s offshore oil and gas regulatory program. Because of my participation in this project, I won’t comment on the specifics of the report.  I will say that I was impressed by the professionalism of the Board and the DOI staff who assisted with the project.  All views were openly discussed and carefully considered.

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