• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Reality catching up with EV forecasts
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 13 days US Oil Independence is a myth and will always be a myth
  • 2 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 8 days The Federal Reserve and Money...Aspects which are not widely known
  • 17 days Natural gas price to spike when USA is out of the market
  • 2 hours "Oil prices likely not responsible for inflation and other energy insights by hedge fund manager Josh Young" - Kitco News interview by David Lin
  • 13 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 16 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 16 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Oil And Gas Drilling Is Now Back Off Again In This Hot-Button Play

One of the biggest stories in offshore oil and gas recently has been a potential opening of the U.S. Atlantic to drilling. With lawmakers having proposed the first lease sale in decades here as part of an overall energy strategy for 2017 to 2022.

But yesterday officials did an abrupt about-face on Atlantic drilling.

U.S. Secretary of the Interior Sally Jewell confirmed at a press conference that the Obama administration will remove the Atlantic from areas offered for exploration over the next five years. With this area not being listed amongst regions planned for lease sales as part of the Outer Continental Shelf Oil and Gas Leasing Program 2017-22. Related: Argentina’s YPF Ousts ‘’Magician’’ In Favor Of Banker

Jewell said there was simply too much opposition to Atlantic drilling — coming from environmental groups and local communities on the U.S. East Coast. As well as from groups like the Department of Defense and NASA, who said that drilling could interfere with their operations.

ADVERTISEMENT

The move is a major disappointment for the oil industry. That had been looking at some potentially major prizes in this little-explored part of the offshore.

But those plans will now have to wait until at least 2023, when the next 5-year energy plan will be due. Related: Oil Won’t Stage A Serious Rebound Until This Happens

As it stands, the current plan calls for 10 potential lease sales in the go-to exploration climes of the Gulf of Mexico. As well as three sales in U.S. Arctic waters.

ADVERTISEMENT

But Secretary Jewell cautioned that even the Arctic sales could be dropped from the final version of the leasing program. Saying that the government is still examining these areas and considering additional protections or even a complete withdrawal of the Arctic. Related: Putin’s Dilemma: To Sell Or To Nationalize Oil Assets

Of course, lower oil and gas prices likely played some role in this decision. With interest in frontier regions almost certain to be much lower these days than a few years ago when Atlantic drilling was first proposed.

But the move is also a signal that American lawmakers are unwilling to defy bad press to open new areas for exploration. Offshore activity may be confined to its traditional stomping grounds for some time to come.

Here’s to sticking firm,

By Dave Forest

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News