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    API appealing Gulf of Mexico lease sale ruling

    Feb. 9, 2022
    API has filed a notice of appeal with the US Court of Appeals for the decision by the D.C. District Court invalidating the Lease Sale 257 results.
    Related To: American Petroleum Institute (API)
    (Courtesy BOEM)
    Boem1117 6203f122cd97f

    Offshore staff

    WASHINGTON, D.C. – The American Petroleum Institute (API) has filed a notice of appeal with the US Court of Appeals for 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.

    Lease Sale 257 generated $198,511,834 in total bids on Nov. 17, 2021. The revenues received are directed to the US Treasury, state and local governments, the Land and Water Conservation Fund, and the Historic Preservation Fund.

    API Senior Vice President for Policy, Economics and Regulatory Affairs Frank Macchiarola said: “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.

    “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 US natural gas and oil producers and limiting access to the affordable, reliable energy that’s needed here in the US and around the world.

    “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.”

    According to the API, an Obama-era report analyzing the effects of offshore leasing restrictions found that US greenhouse gas emissions will be little affected and could increase slightly if imports increased in the absence of new US 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 in the US.

    In addition, Mike Wirth, chairman and CEO of Chevron, will serve as chairman of API’s board of directors for a two-year term.

    02/09/2022