The Bureau of Ocean Energy Management (BOEM) has again postponed a Gulf of Mexico oil and gas lease sale following an earlier decision by an appeals court that halted the process.
BOEM said on Nov. 2 that it was delaying Lease Sale 261 as a result of an Oct. 26 decision by the U.S. Court of Appeals for the Fifth Circuit. The sale was initially scheduled for Sept. 27 and later reset for Nov. 8 due to judicial orders.
With that sale’s timeline disrupted, and until the court rules, “BOEM cannot be certain of which areas or stipulations may be included in the sale notice,” the agency said on Nov. 2.
BOEM said potential bidders for Lease Sale 261 should not submit bids until the agency provides additional instruction. The bureau will hold any bids already received and will hold the sale after it receives further direction from the appeals court.
RELATED
Just Three: Industry Decries Meager Offshore Oil, Gas Leasing Plan
West Virginia Sen. Joe Manchin, chair of the Energy and Natural Resources Committee, blamed the Biden Administration for the postponement.
“I also want to express my frustration that just this morning, the Bureau of Ocean Energy Management announced that it would again delay the Gulf of Mexico Lease Sale 261, despite the director testifying before this committee one week ago that “All systems are go” to hold the lease sale on November 8,” Manchin said. “BOEM is once again blaming the courts for delaying the sale, but the delays are entirely the Administration’s fault. The Department of the Interior was so eager to meet the demands of environmental groups to restrict the sale that it bypassed important legal requirements leading to this litigation.”
Recommended Reading
CERAWeek: LNG to Play Critical Role in Shell's Future, CEO Says
2024-03-19 - Sawan said LNG will continue to play a critical role adding that LNG currently makes up around 13% of gas sales but was expected to grow to around 20% in the coming 15 to 20 years.
CERAWeek: Trinidad Energy Minister on LNG Restructuring, Venezuelan Gas Supply
2024-03-28 - Stuart Young, Trinidad and Tobago’s Minister of Energy, discussed with Hart Energy at CERAWeek by S&P Global, the restructuring of Atlantic LNG, the geopolitical noise around inking deals with U.S.-sanctioned Venezuela and plans to source gas from Venezuela and Suriname.
API Gulf Coast Head Touts Global Emissions Benefits of US LNG
2024-04-01 - The U.S. and Louisiana have the ability to change global emissions through the export of LNG, although new applications have been frozen by the Biden administration.
Permian Gas Finds Another Way to Asia
2024-04-30 - A crop of Mexican LNG facilities in development will connect U.S. producers to high-demand markets while avoiding the Panama Canal.
Pitts: US, Qatar Face off in LNG ‘Olympics’
2024-05-03 - In the LNG exporting space, the U.S. is squaring off with its fiercest competitor, Qatar, with both countries expected to outpace Australia