Coming off climate talks, US to hold huge crude sale in Gulf
The U.S. Interior Department on Wednesday will auction vast oil reserves in the Gulf of Mexico estimated to hold up to 1.1 billion barrels of crude
November 17, 2021, 1:10 AM
6 min read
Share to FacebookShare to TwitterEmail this articleFILE - President Joe Biden speaks during a news conference at the COP26 U.N. Climate Summit, Tuesday, Nov. 2, 2021, in Glasgow, Scotland. The U.S. Interior Department on Wednesday, Nov. 17, is auctioning vast oil reserves in the Gulf of Mexico estimated to hold up to 1.1 billion barrels of crude. It's the first such sale under President Biden and underscores the challenges he faces to reach climate goals that rely on cuts in fossil fuel emissions. (AP Photo/Evan Vucci, File)
NEW ORLEANS -- The U.S. Interior Department on Wednesday will auction vast oil and gas reserves in the Gulf of Mexico estimated to hold up to 1.1 billion barrels of crude, the first such sale under President Joe Biden and a harbinger of the challenges he faces to reach climate goals that depend on deep cuts in fossil fuel emissions.
The livestreamed sale invited energy companies to bid on drilling leases across some 136,000 square miles (352,000 square kilometers) — about twice the area of Florida.
It will take years to develop the leases before companies start pumping crude. That means they could keep producing long past 2030, when scientists say the world needs to be well on the way to cutting greenhouse gas emissions to avoid catastrophic climate change.
The auction comes after a federal judge in a lawsuit brought by Republican states rejected a suspension of fossil fuel sales that Biden imposed when he first took office.
The Democrat campaigned on promises to curb fossil fuels from public lands and waters, which including coal account for about a quarter of U.S. carbon emissions, according to the U.S. Geological Survey. Yet even as he’s tried to cajole other world leaders into strengthening international efforts against global warming, Wednesday’s sale illustrates Biden's difficulties gaining ground on climate issues at home.
The administration last week proposed another round of oil and gas lease sales in 2022, in Montana, Wyoming, Colorado and other western states. Interior Department officials proceeded despite concluding that burning the fuels could lead to billions of dollars in potential future climate damages.
“We had Trump’s unconstrained approach to oil and gas on federal lands and Biden’s early attempt to pause drilling. Now it looks like the Biden administration is trying to find a new policy,” said researcher Robert Johnston with Columbia University’s Center on Global Energy Policy.
“They’re being very cautious about undermining their fragile momentum” on climate issues, he added.
The energy bureau said in pre-sale documents released Tuesday that it received bids on 307 tracts totaling nearly 2,700 square miles (6,950 square kilometers). That’s the largest total for a single sale since Gulf-wide bidding resumed in 2017. Those seven sales have generated almost $1 billion in total revenue.
Environmental reviews of the Gulf of Mexico sale conducted under former President Donald Trump and affirmed under Biden reached an unlikely conclusion: Extracting and burning the fuel would result in fewer greenhouse gases than leaving it in the ground.
Similar claims in two other cases, in Alaska, were rejected by federal courts after challenges from environmentalists. Climate scientist Peter Erickson — whose work was cited by judges in one of the cases — said the Interior Department's analysis had a glaring omission: They left out greenhouse gas increases in foreign countries that would result from having more Gulf oil on the market.
“The math is extremely simple on this kind of stuff," said Erickson, a senior scientist with the Stockholm Environment Institute, a nonprofit research group. “If new leases expand the global oil supply, that has a proportional effect on emissions from burning oil. Therefore, giving out these leases in the Gulf of Mexico would be increasing global emissions.”
The Interior Department’s Bureau of Ocean Energy Management in recent months changed its emissions modeling methods, citing Erickson’s work. But officials said it was too late to use the new approach for Wednesday’s lease sale, which they said had been through "a rigorous process with specific timelines."
