The American Petroleum Institute (API) filed a notice of appeal with the U.S. Court of Appeals for the D.C. Circuit of the decision by the D.C. District Court invalidating the results of the only federal lease sale for natural gas and oil held in 2021.
The sale generated $198,511,834 in total bids, and the revenues received are directed to the U.S. Treasury, state and local governments, the Land and Water Conservation Fund and the Historic Preservation Fund.
“Today we’re taking action to preserve American energy leadership and ensure that development in the Gulf of Mexico can continue to play a critical role in meeting the nation’s energy needs, while generating billions in revenue for critical conservation programs,” said API Senior Vice President for Policy, Economics and Regulatory Affairs Frank Macchiarola.
“At a time of rising energy costs and heightened geopolitical tensions, the misguided decision to cancel the only lease sale held last year is contributing to significant uncertainty for U.S. natural gas and oil producers and limiting access to the affordable, reliable energy that’s needed here in the U.S. and around the world," Macchiarola continued. "We call on the Department of Interior to join us in this effort and appeal the court’s ruling, which overlooked the comprehensive environmental analysis that the Bureau of Ocean and Energy Management conducted as part of the NEPA process prior to the lease sale, including careful consideration of the emissions impacts of reasonable alternatives.”
An Obama-era report analyzing the effects of offshore leasing restrictions found that U.S. greenhouse gas emissions will be little affected and could increase slightly if foreign imports increased in the absence of new U.S. offshore leasing and production. The report cites foreign energy sources would substitute for reduced American offshore supply, and that increased production and subsequent transport of foreign oil would lead to higher GHG emissions than energy produced here in the United States.
