Offshore drilling changes in works
President Donald Trump has ordered his Cabinet to move ahead on replacing the Obama administration’s offshore drilling policies, with an eye to opening up the Atlantic and Arctic coastlines to oil and gas development.
In doing so, Trump hopes to expand offshore drilling into coastal areas that have long been off-limits to the industry, while undoing a decision by former President Barack Obama that the environmental risks in drilling in the Arctic and Atlantic were too great.
The announcement came during a speech Thursday at the Department of Energy in Washington, as Trump announced a series of energy developments including the approval of a pipeline to Mexico for petroleum products and a new LNG export terminal in Lake Charles, La.
“The truth is, we have near limitless supplies of energy in our country,” Trump said. “This administration is looking not just at American energy independence but American energy dominance. We will export American energy
all over the world.”
The Interior Department will study the entire U.S. coastline for offshore drilling opportunities in developing a new five-year drilling plan, Interior officials said Thursday, adding that Trump had singled out the Beaufort and Chukchi Seas in the Arctic and the southern Atlantic Ocean as opportunities for federal leasing.
So begins what typically is a yearslong process, in which the administration will have to conduct substantial environmental reviews and open up its plans to extended periods of public comment.
At the same time, the administration is facing litigation from environmental groups challenging its plan to undo a ban on Arctic oil and gas development ordered by Obama on his way out of office.
“We’re going to let the court make their determination, but we’re going to move forward,” Deputy Assistant Secretary for Land and Minerals Management Kate McGregor said Thursday during a briefing with reporters. “We’ll be sticking to every rule on the books. We will find areas for efficiencies where we can, but we will not be cutting any corners.”
In the meantime, the Obama administration’s existing five-year offshore drilling program will remain in effect.
The announcement comes as offshore drilling in the Gulf of Mexico and other regions continues to lag, with oil companies putting projects on hold while crude prices hover around $50 a barrel.
But for an industry that perceived itself to be at odds with the Obama administration, Thursday’s news offered some optimism.
“Today’s announcement gives confidence for the future that this administration recognizes the benefits to be gained from safe, responsible development of America’s abundant natural resources,” said Dan Naatz, a senior vice president at the Independent Petroleum Association of America.