Climate Bill's Unlikely Beneficiary: U.S. Oil and Gas Industry
Energy attorney Jim Noe was quoted in an Associated Press article discussing oil and natural gas lease sales. The U.S. oil industry hit a legal roadblock in January when a judge struck down a $192 million oil and natural gas lease sale in the Gulf of Mexico over future global warming emissions from burning the fuels. It came at a pivotal time for Chevron, Exxon and other industry players as the Biden Administration had curtailed opportunities for new offshore drilling, while raising climate change concerns. The industry's setback was short-lived, however. The climate measure President Joe Biden signed on Aug. 16, 2022, bypasses the administration's concerns about emissions and guarantees new drilling opportunities in the Gulf of Mexico and Alaska. Mr. Noe commented that a stream of potential drilling sites is crucial for companies to maintain future production because wells can take years to develop and some yield nothing.
"The industry is in constant need - almost like a treadmill - of lease sales," he said.