Washington Update From the U.S. Oil & Gas Association - 12.23.2023
Through the Senate and the House
December 22, 2023
Offshore lease sale the Biden Administration tried to stop brings in $382 million
After the courts finally stepped in and forced the Biden administration to hold Lease Sale 261, the lease sale brought in $382 million in winning bids.
This lease sale was originally planned under the five-year offshore program that President Biden canceled in 2022. However, the lease sale was reinstated by the Inflation Reduction Act. Even with that, the Biden Administration had to be forced by the courts to hold the lease sale. Industry responded accordingly with interest backed up by investment. There was no request for government subsidies nor implicit backing of the projects, no need for PPAs or 10 year extension of tax credits - just a willingness to put private capital on the line. Just as it should be.
Concurrently – the Biden Administration proudly announces the most anemic five-year offshore leasing program in history
More than 500 days late the Administration also issued its final five-year offshore leasing program. Outrageously, the Biden Administration has zero planned offshore lease sales in 2024. This means that 2024 will be the first year without an offshore lease sale since 1966.