Draft program proposes opening up almost entire Outer Continental Shelf to oil, gas leasing

The Department of the Interior (DOI) released last week the draft proposed Five-Year Oil and Gas Leasing Program for the Outer Continental Shelf (OCS) for 2019-2024, which will attempt to advance the highest number of lease sales in U.S. history.

The draft program proposes opening over 90 percent of the total OCS acreage and 98 percent of undiscovered, technically recoverable oil and gas resources to possible future exploration and development.

This step is the first in the process of developing a new five-year plan. Once the draft proposed program (DPP) is published in the Federal Register, a 60-day public comment period will begin. The Bureau of Ocean Energy Management (BOEM) will conduct public meetings with stakeholders across the U.S.

Areas included in the draft might not be part of the final program, depending on public comment and further analysis. Areas not part of the DPP are excluded from consideration for the final program.

The DPP includes 47 potential lease sales in 25 of the 26 planning areas, including 19 sales off the coast of Alaska, 12 in the Gulf of Mexico, nine in the Atlantic Region, and seven in the Pacific Region.

“While nothing in this proposal is final, it is good to see the administration seeking to expand access in places like Alaska, rather than limiting our opportunities,” Sen. Lisa Murkowski (R-AK), chair of the Committee on Energy and Natural Resources, said. “This is more good news as we seek to create jobs, keep energy affordable, and strengthen our long-term security.”

Oil and gas industry organizations the American Petroleum Institute (API) and the Independent Petroleum Association of America (IPAA) released statements welcoming the DPP.

“This new offshore leasing plan is an important step towards harnessing our nation’s energy potential for the benefit of American energy consumers,” API Upstream Director Erik Milito said. “The ability to safely and responsibly access and explore our resources in the Arctic, Atlantic, Pacific and the Eastern Gulf of Mexico is a critical part of advancing the long-term energy security of the U.S. It will also encourage economic growth, spur manufacturing and investment, create thousands of additional U.S. jobs, and strengthen our national security.”

Sen. Tom Carper (D-DE), however, characterized the expansion of oil and gas leasing in the DPP as “completely unnecessary,” noting that the current plan makes approximately 45 million new barrels of oil available. He also expressed concerns about the economic and environmental risks associated with potential oil spills.

“This plan is an assault on Florida’s economy, our national security, the will of the public and the environment,” Sen. Bill Nelson (D-FL), said. “This proposal defies all common sense, and I will do everything I can to defeat it.”

The Outer Continental Shelf Lands Act requires the Secretary of the Interior to balance the potential for environmental impacts, for the discovery of oil and gas, and for adverse effects on the coastal zone.

Finalizing the 2019-2024 program will be a multi-year process, and the 2017-2022 program will continue to be implemented while the new plan is developed.