From the Daily Caller
Nick Pope
Contributor
A ruling by a judge appointed by President Joe Biden could ultimately halt oil and gas drilling in the Gulf of Mexico in December.
Judge Deborah Boardman, a Biden appointee to the U.S. District Court for the District of Maryland, in August sided with the prosecution of environmentalists, vacating a key National Marine Fisheries Service (NMFS) environmental review known as Biological opinion), the review is based on offshore drilling in the Gulf of Mexico. Unless the federal government can amend the biological opinion by Dec. 20 and bar the high court or Congress from intervening, the ruling could force offshore oil and gas drilling to grind to a halt as developers decide whether to do so at their own risk, according to multiple energy industry experts and Stakeholders said it may shut down its operations until a new review is released.
“A judge revoked such a formally issued permit on such specious grounds that it puts in jeopardy all other formally issued permits in areas occupied by this endangered species and other endangered or threatened species.” 40 said veteran David Blackmon. “Operators must now consider whether they are willing to risk millions of dollars of capital on a project, only to find their permits revoked at the whim of a judge sympathetic to the aggressive climate lobby.” (RELATED: Biden acknowledges natural gas export approvals, but it might just be a 'political ploy' to help his vice president)
Blackmon added: “Absurd judicial decisions like this have the potential to destroy billions of dollars of investment in the United States by undermining the confidence of companies and investors in the correct and consistent application of laws and regulations.” “Unfortunately, “Undermining America's long-standing advantage in attracting capital has been a consistent feature of this administration, and activists see it as beneficial.”
According to the U.S. Energy Information Administration, the Gulf of Mexico is one of the largest oil and natural gas producers in the United States. The region's crude oil production accounts for nearly 15% of U.S. crude oil production and dry natural gas production accounts for 5% of total U.S. production. According to Bloomberg, if the Gulf of Mexico were a country, it would be one of the 12 largest oil producers in the world.
Notably, oil produced in the Gulf of Mexico is less carbon intensive than oil produced elsewhere; a May 2023 analysis commissioned by the National Ocean Industries Association (NOIA) found that oil produced offshore in the Gulf of Mexico is less carbon intensive than oil produced elsewhere. The global average excluding the United States and Canada is 46% lower.
The biological opinion on possible disruption to the industry, released in 2020, assessed how oil and gas operations might affect protected species in the area, according to Bloomberg. Regulators often use a biological perspective as an overall analysis rather than making individual assessments on a case-by-case basis.
An official with an industry stakeholder involved in resolving the impasse told reporters that federal regulators would approve “taken” if developers abide by the biological argument, meaning developers can legally harm or harass a certain number of a specific species. . According to a memo issued on August 29, without a valid biological opinion limiting liability through these measures, the company “will have to decide whether to continue operating at its own risk” or cease operations until the situation is resolved. solve.
In the absence of reliable biological opinions, regulators responsible for approving development in the Gulf of Mexico may also have to weigh hundreds of different decisions each year, an official with an industry stakeholder said, and the reams of paperwork could overwhelm regulators. Overwhelmed. According to Bloomberg, such an outcome could create problems for offshore green energy development, in addition to disrupting vessels supplying offshore drilling platforms, the operation of existing wells, and future offshore oil and gas development. (Related: Biden administration locks in leanest offshore oil and gas leasing schedule in U.S. history as prices remain high)
NMFS has begun integrating new biological insights, but the agency likely won't complete it until next spring, according to Bloomberg.
The agency “is aware of the court's ruling against the Sierra Club and others.” v. National Marine Fisheries Service, and [it is] work with [its] federal agency partners [their] Next steps,” a spokesperson for the National Oceanic and Atmospheric Administration (NOAA), of which NMFS is a subsidiary, told DCNF.
Reuters reports that environmental groups suing the government over the biological arguments include the Sierra Club and the Center for Biological Diversity. According to Bloomberg, some industry stakeholders, including NOIA and the American Petroleum Institute (API), have intervened in the lawsuit on the government's side.
API President and CEO Mike Sommers sent a letter to Commerce Secretary Gina Raimondo on Friday expressing his concerns about the evolving legal situation in the Gulf of Mexico.
“Without a solution in place, this decision will create a significant bureaucratic bottleneck for the federal government and could halt all oil and gas operations in the Gulf of Mexico,” Summers wrote. He added, “This court decision The potential halt or cessation of operations in the U.S. Gulf of Mexico has severely slowed down all operations in the U.S. Gulf of Mexico, putting vital energy supply sources and economic security at risk.
In addition, according to Bloomberg, industry groups and affected businesses are conducting a lobbying blitz to try to avoid the worst-case scenario, and stakeholders are also communicating with legislators’ offices to seek legislative solutions. They are also considering legal remedy strategies if a solution cannot be found soon.
“Potential disruptions to the U.S. Gulf of Mexico energy flow should be of great concern,” NOIA President Erik Milito said in a statement shared with DCNF. “For now, a court order related to the Gulf of Mexico Energy Sector Biological Opinion could have significant consequences for the region.” This disruption could cause considerable economic and national security harm to our country…Given the critical importance of the Gulf of Mexico, we remain optimistic that cooler heads will prevail and we will see clarity. A much-needed solution to this problem is through judicial proceedings, regulatory efforts or congressional action.
The White House, Bureau of Ocean Energy Management and Interior Department did not respond to requests for comment. The Justice Department declined to comment.
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