Energy Groups Comment on BOEM's 'Next Steps' for GOM Leasing Program

Energy Groups Comment on BOEM's 'Next Steps' for GOM Leasing Program
The API and NOIA have their say.
Image by Kanoke_46 via iStock

In a release sent to Rigzone recently, the U.S. Bureau of Ocean Energy Management (BOEM) announced the “next steps” for the Gulf of Mexico oil and gas leasing program.

BOEM highlighted the availability of the GOM Regional Outer Continental Shelf (OCS) Oil and Gas Lease Sales Draft Programmatic Environmental Impact Statement (EIS) in its release and revealed that it is seeking public comments on the statement.

This programmatic EIS is expected to inform the decision for the first GOM oil and gas lease sale proposed in the leasing program, BOEM stated in its release, adding that it is also expected to be used and supplemented as appropriate for decisions on future proposed GOM lease sales.

BOEM highlighted in its release that the programmatic EIS would also be used to support post-lease site and activity-specific OCS oil and gas related analyses and approvals. The organization said it will make the final programmatic EIS available to the public at least 30 days prior to the issuance of any decision.

Commenting on BOEM’s release, Scott Lauermann, an American Petroleum Institute (API) spokesperson, told Rigzone that the group is reviewing the draft EIS and that it “look[s] forward to working with BOEM to ensure that a robust 2025 sale happens on schedule to bring the benefits offshore oil and natural gas production brings to the United States through jobs, investment, and domestic energy security”.

In a separate statement commenting on the BOEM release, which was sent to Rigzone this week, National Ocean Industries Association (NOIA) President Erik Milito said, “we are pleased to see BOEM finally moving forward with the next step toward the first Gulf of Mexico oil and gas lease sale of the 2024-2029 offshore leasing program”.

“This is not just about securing a lease sale in 2025; it’s about affirming the Gulf’s pivotal role in bolstering our energy security, driving economic growth, and enhancing our geopolitical strength,” he added.

“While this advancement is welcome, we believe this process should have been initiated concurrently with the development of the full 2024-2029 leasing program to avoid delays in oil and gas leasing activities,” he went on to say.

In the statement, Milito noted that the Gulf of Mexico is more than just an energy source.

“It’s a cornerstone of economic stability, energy innovation, job creation, and environmental stewardship,” he said.

“The Gulf of Mexico oil and gas program shines as the primary funding mechanism for conservation and recreation efforts, including funding for our treasured national parks,” he added.

“As we look forward to this lease sale, NOIA stresses the importance of maximizing available acreage. The Gulf’s strategic value lies in its capacity to deliver energy efficiently, support thousands of American jobs, and offer a pathway to lower carbon energy solutions on a global scale,” he continued.

Milito said in the statement that oil production from the Gulf of Mexico is recognized by various independent studies to be among the lowest-carbon intensive barrels in the world.

“It’s clearly better to produce our energy from the Gulf of Mexico than for the global market to rely upon foreign sources with higher emissions and weaker environmental performance,” he added.

“Furthermore, we urge Congress and the incoming administration to reassess the limited schedule of only three lease sales in the current offshore program and take steps to restore our leasing program to bolster investment in U.S. projects,” he continued.

“A more robust schedule would better reflect the Gulf’s indispensable role in our energy landscape and support both energy development and environmental stewardship,” he said.

“NOIA is committed to working with all stakeholders to advocate for policies that uphold the Gulf of Mexico as a key pillar in energy security, economic progress, and total U.S. energy leadership,” Milito went on to state.

Rigzone contacted BOEM, the U.S. Department of the Interior (DOI), and the Trump transition team for comment on Lauermann and Milito’s statements. BOEM and the DOI declined to comment. The Trump transition team has not yet responded to Rigzone’s request at the time of writing.

In a statement posted on its website on December 15, 2023, the DOI announced that it had published the final 2024–2029 National Outer Continental Shelf Oil and Gas Leasing Program “with the fewest oil and gas lease sales in history”. The program schedules three oil and gas lease sales in the Gulf of Mexico Program Area in 2025, 2027, and 2029, that statement highlighted.  

“The program balances the nation’s energy security and climate goals while also identifying the fewest oil and gas lease sales for a five-year program in history,” BOEM said in the release sent to Rigzone recently, noting that it does not include any lease sales in Atlantic, Pacific, and Alaskan waters.

“The Inflation Reduction Act prohibits BOEM from issuing a lease for offshore wind development unless the agency has offered at least 60 million acres for oil and gas leasing on the OCS in the previous year,” BOEM added in the release.

“This significantly reduced number of oil and gas lease sales from past leasing programs will enable the United States to meet its energy needs and continue the rapid and accelerating transition to clean energy,” it continued.

BOEM noted in its release that Section 18 of the OCS Lands Act “authorizes the Secretary of the Interior to establish a schedule of lease sales for a five-year period by balancing specific factors of OCS regions and selecting the size, timing, and location of OCS lease sales that best meet regional and national energy needs and considers the impact of oil and gas exploration on the marine, coastal, and human environments”.  

To contact the author, email andreas.exarheas@rigzone.com


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Andreas Exarheas
Editor | Rigzone