Central Louisiana News

U.S. Senator Bill Cassidy, M.D. (R-LA) has called out the Biden administration for its handling of offshore energy leasing, particularly in the Gulf of Mexico. During a U.S. Senate Energy and Natural Resources Committee meeting, Cassidy expressed concern over the administration's failure to comply with the law regarding oil and gas lease sales.

Cassidy pointed out that the administration's commitment to holding three offshore lease sales over the next five years seemed unlikely, noting that "2024 is the first year without a lease sale since 1965." He expressed worry that Lease Sale 262 might be delayed until the end of 2025 due to incomplete reviews and planning steps by the Department of the Interior (DOI).

When questioned about the timeline for completing necessary reviews, DOI acting Deputy Secretary Laura Daniel-Davis acknowledged that it would take at least 18 months. Cassidy raised further concerns about potential missed lease sales in 2024 and 2025, stating, "So, it looks like we might miss a lease sale in 2024 and a lease sale in 2025."

Highlighting the implications of these delays, Cassidy criticized the administration for playing "fast and loose with the law," accusing them of making decisions without proper adherence to regulations. He emphasized the importance of timely lease sales for the administration's energy goals and political support.

In response to the delays, Cassidy referenced legislation he had previously introduced to ensure timely offshore oil and gas lease sales. He also criticized the Biden administration's proposed Outer Continental Shelf Oil and Gas Leasing Program for 2024 – 2029, which suggested holding only three oil sales, the smallest program in U.S. history.

The article noted that the last lease sale, Lease Sale 261, received significant industry interest with 352 total bids, indicating optimism for future energy production in the Gulf. Despite this, Cassidy highlighted the need for more lease sales to support energy production and revenue generation, particularly for states like Louisiana.

Louisiana, in particular, benefits from revenue generated by offshore energy production, which is used for conservation, restoration, and environmental projects to address coastline erosion. In Fiscal Year 2023, the state received a total of $156,329,442.65 in revenue from energy produced in the Gulf of Mexico, emphasizing the importance of timely and robust offshore energy leasing programs.