The Trump administration is developing an order to open new areas to offshore oil and gas drilling, reversing former President Barack Obama’s unilateral decision to lock up most of the Arctic and Atlantic oceans, according to industry sources.
Industry sources familiar with the matter told Platts an executive order is in the works to rewind Obama’s decision to make large swaths of the Arctic and Atlantic off-limits to oil and gas drilling.
Secretary of the Interior Ryan Zinke told industry representatives the new drilling plan would be signed soon, according to Bloomberg. However, he gave few details on what the order could include.
The Department of the Interior’s (DOI) new five-year offshore drilling plan could take years to develop and would replace the Obama administration’s five-year plan finalized in November.
President Donald Trump promised to end Obama-era restrictions on energy production in order to unlock revenue from natural resources and create jobs. DOI raised $275 million in bids in a recent lease auction for the Gulf of Mexico.
Trump is expected to sign the order by the end of April, and it’s sure to draw legal challenges from environmentalists who’ve argued Obama’s indefinite ban on Arctic and Atlantic drilling can’t be overturned.
[dcquiz] Obama used Section 12(a) of the Outer Continental Shelf Lands Act, a 1953 law governing offshore drilling, in an unprecedented way, blocking leases in the Atlantic Ocean and the Chukchi and Beaufort seas.
Obama’s order took 125 million acres in Arctic seas and four million acres in the Atlantic Ocean out of future lease sales indefinitely. Supporters said the former president’s actions “permanently” banned drilling in those regions.
But the drilling ban is only permanent if Congress doesn’t change the law or Trump doesn’t move to test it in court. Past presidents have reduced the size of Section 12(a) designations but never fully repealed them.
The U.S.-held portion of the Arctic Ocean is estimated to hold 27 billion barrels of oil and 132 trillion cubic feet of natural gas. The oil and gas industry has struggled to access these vast energy reserves but new discoveries in northern Alaska have reinvigorated some interest in the region.
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