The Trump administration on Aug. 26 said it planned to hold a sale of oil and gas leases in California before the end of the year, in what would be the first drilling auction in the Golden State since 2013.
The move is likely to put the Trump administration on a collision course with left-leaning California, which has challenged the federal government repeatedly over its efforts to roll back climate change rules and promote fossil fuels.
Federal drilling auctions in California were halted in 2013 after state officials filed lawsuits challenging the practice on environmental and health grounds, fueled by widespread public opposition to fossil fuels.
The U.S. Bureau of Land Management (BLM) on Aug. 26 published an environmental review for seven land parcels covering 4,330 acres that it plans to offer in or adjacent to existing oil fields in Kern County, it said in a statement.
"The BLM is a key contributor to the Trump Administration’s priority for American energy independence through an all-of-the-above strategy that includes oil and gas, strategic minerals and renewable sources such as wind, geothermal and solar—all of which can be found on public lands," it said.
The public may submit comments on the document by Sept. 25.
California had accused the Trump administration of failing to adequately consider the adverse effects drilling would have on the people and environment in the state after the government first proposed restarting drilling leases there, according to a lawsuit the state filed in January.
Former Enron Corp. CEO Jeffrey Skilling has been holding meetings, hoping to win backing for a new energy venture, the Wall Street Journal reported citing unnamed sources.
Even when U.S. benchmark prices return to $45/bbl, "very few" U.S. producers would be able to afford to expand production because of high debt levels, Pioneer Natural Resources CEO Scott Sheffield says.
Tellurian Inc. said on Jan. 30 Cheniere Energy Inc. has dismissed all claims against its Chairman Charif Souki and Vice Chairman Martin Houston.