Bud's Offshore Energy (BOE)

Offshore oil and gas:

• The current 5 year OCS oil and gas leasing plan, which provided for the fewest sales in history, will be rewritten.
• The new program will include at least one Gulf of Mexico lease sale annually.
• Where there is State support (e.g. Alaska), other offshore areas may be added to the program.
• Reversal of the Beaufort Sea Presidential withdrawals, either by executive order or, if necessary, by congressional action, is a distinct possibility.
• A Gulf of Mexico oil and gas sale will be held during the first half of 2025. This can be accomplished under the Biden administration’s 5 year plan.
• Judge Boardman’s ruling requiring a new biological opinion under the Endangered Species Act (ESA) has created some uncertainty regarding the timing of a GoM sale. Her decision is being litigated and the effective date of her ruling is now 5/21/2024 (see attached). Congressional action could also reverse this decision.
• Expect other litigation on NEPA and ESA grounds with the intent of stalling oil and gas leasing. Congressional action could reverse or limit such litigation.

Offshore wind:

• Expect offshore wind leasing to be “paused.”
• Current leaseholders are contractually entitled to continue developing and operating their leases. Expect construction and operation plans to be more closely scrutinized.
• Expect BSEE’s report on the Vineyard Wind turbine blade failure to receive added attention and publicity.
• Expect considerable tension between North Atlantic governors, strong supporters of offshore wind, and the new administration.

Expect less babble about absurd topics like “petro-masculinity.” 😉

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