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Page added on October 31, 2017

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Trump to Auction Off Swaths of Gulf of Mexico to Oil Companies

Trump to Auction Off Swaths of Gulf of Mexico to Oil Companies thumbnail

The Trump administration made history Tuesday in proposing that nearly 77 million acres in the Gulf of Mexico be made available for companies wanting to purchase federal oil and gas leases — the largest offering ever in the United States.

In announcing the sale, the Interior Department compared the targeted waters to “about the size of New Mexico” and said the first lease sales off Texas, Louisiana, Mississippi, Alabama and Florida are scheduled for March next year. The event will include “all available un-leased areas on the Gulf’s Outer Continental Shelf,” a statement said.

Interior Secretary Ryan Zinke first broached such a sale shortly after he took office in March, proposing to offer 73 million acres for leases. This part of the Gulf was the scene of arguably the worst environmental disaster in U.S. history, the 2010 Deepwater Horizon explosion and subsequent spill of 215 million gallons of crude that fouled beaches from Louisiana to Florida.

Years later, the spill’s effects are still being felt, according to a report by the nonprofit group Oceana.

Scientists have detected hydrocarbons from the well in 90 percent of pelican eggs more than 1,000 miles away in Minnesota, where the birds spend summer after wintering along the gulf. Dolphins living in Barataria, La., have experienced mortality rates 8 percent higher than dolphin populations elsewhere, and their reproduction success dropped 63 percent.

British Petroleum, which owned the operation, had paid penalties in excess of $61 billion as of July 2016.


Bart Segel holds a pelican during a wash at Fort Jackson Bird Rehabilitation Center in Buras, La., on June 11, 2010. (Carol Guzy/The Washington Post )

The Bureau of Ocean Energy Management, the Interior Department division that oversees offshore leases, offered assurances that the environment would be protected as additional leases are sold in the gulf. But the agency largely focused on the resources that could be recovered there as part of what President Trump calls America’s energy dominance.

“American energy production can be competitive while remaining safe and environmentally sound,” said Vincent DeVito, Interior’s counselor for energy policy. “People need jobs, the Gulf Coast states need revenue, and Americans do not want to be dependent on foreign oil.”

The bureau estimated that up to a billion barrels of oil and up to 4 trillion cubic feet of natural gas could be recovered. Most of the sale will take place in the Gulf’s Central Planning Area off Louisiana and Mississippi.

“This is great news that our oil and gas industry in Louisiana sorely needs,” said Sen. John Neely Kennedy (R-La.), one of 12 lawmakers and governors whose support was quoted in the announcement. “This is the largest sale in U.S. history, and it will create jobs and bolster our state and national economy. Our Louisiana workers are ready to go back to work.”

Mississippi Gov. Phil Bryant (R) also declared his approval. “Mississippi welcomes Secretary Zinke’s action to carry out the president’s vision for American energy dominance,” Bryant said. “This will strengthen our state’s status as a leader in oil and gas exploration and create good jobs for hard-working Mississippians.”


A BP cleanup crew shovels oil from a beach in May 2010 at Port Fourchon, La. (Stephane Jourdain/AFP)

Few conservation groups reacted to Interior’s announcement Tuesday, although several had called the unprecedented lease sale “a terrible idea” when Zinke first discussed it this spring. Athan Manuel, director of the Sierra Club’s Lands Protection Program, said it similarly opposed a bid by Trump’s predecessor, Barack Obama, to open up 66 million acres to leases last year.

Manuel hinted at the reasons behind the muted response Tuesday. It’s “not really news,” he said of the actual announcement. While larger in scale, it is not significantly different from what Obama proposed. The gulf, Manuel said, has become “a sacrifice zone for the oil and gas industry.”

WashPost



25 Comments on "Trump to Auction Off Swaths of Gulf of Mexico to Oil Companies"

  1. deadlykillerbeaz on Tue, 31st Oct 2017 5:47 am 

    Pelicans will shit up a lake in no time. Who needs them? Cormorants too, even worse.

    Two avian species that can go the way of the dodo.

    Oil is far more important than birds, wind turbines can kill golden eagles in California, oil can kill pelicans in the Gulf of Mexico. It’s a wash.

    Quid pro quo, all is fair in the world of energy and humans are the only species that deserve to survive.

    Although, scientists can be wiped off of the face of the earth and humanity will at least have a chance.

    Cheers!

  2. makati1 on Tue, 31st Oct 2017 6:50 am 

    Nothing wrong with your mind is there, DKB? IF you could find it, that is. Maybe the world would be better of if YOU were not on it anymore? We can only hope. lol

  3. Davy on Tue, 31st Oct 2017 7:57 am 

    You are Closer to that day than he is being 75, in a turd world country, without health care and living on $1000/month. I will take DKB any day as an asset to this board compared to the aweful extremism you puke daily

  4. MASTERMIND on Tue, 31st Oct 2017 8:26 am 

    Madkat I see you ignoring my questions. once again. Do you have any evidence or peer reviewed studies that show only a US collapse? Or our your beliefs just based on “faith’ or “Magical Thinking”?

  5. MASTERMIND on Tue, 31st Oct 2017 8:28 am 

    Madkat I am a very open minded person and will change my mind with evidence (Reason). But so far you have gave none…And I have gave you four reasons….

    4-0 …..And who is the brainwashed one who thinks he is right for NO REASON? Its always the ones who accuse others..That’s called a misnomer.

  6. Shortend on Tue, 31st Oct 2017 8:41 am 

    Just following in Obamies footsteps..Yippie..
    We can’t have a Liberal, Half White Guy show us all up!

  7. rockman on Tue, 31st Oct 2017 8:47 am 

    And back to the story. President Trump still has a long way to go to match the total acreage that was offered for lease under President Obama. And those leases included the “part of the Gulf was the scene of arguably the worst environmental disaster in U.S. history”.

    And what such stories always fail to report is how little of the acreage even draws a bid: 5% or less is not uncommon. Just another example of how the MSM tries max the inflammatory level of its reporting to pull in the gullable. The GOM is a worn out trend and has been for a long time. Even the Deep Water trend is getting long in the tooth.

  8. Cloggie on Tue, 31st Oct 2017 8:52 am 

    The competition for a lease on pieces of the North Sea, for wind development that is, is stiff:

    http://loc-group.com/renewables/news/cfd-awards-dramatic-impact-of-scale-competition-and-finance-on-offshore-wind-energy/

  9. Ghung on Tue, 31st Oct 2017 8:56 am 

    … not to mention that oil prices were significantly higher when Obama had few takers on these leases.

  10. Apneaman on Tue, 31st Oct 2017 11:56 am 

    deadlykillerbeaz, the bird shit does more for the nutrient cycle than any sub human denier tard could ever comprehend. The humans would not exist,and probably no life at all, without all that shit, so in that regard all deniers and their entire family are not even worth a bucket of shit.

    The planet has a bunch of interconnected cycles and the retard humans have radically altered all of them. Just fucking with the carbon cycle to the degree they have guarantees human extinction before this century is out. This has been apparent for at least a decade, but few are willing to utter it.

    Humans will be extinct in 100 years says eminent scientist

    “(PhysOrg.com) — Eminent Australian scientist Professor Frank Fenner, who helped to wipe out smallpox, predicts humans will probably be extinct within 100 years, because of overpopulation, environmental destruction and climate change.

    Fenner, who is emeritus professor of microbiology at the Australian National University (ANU) in Canberra, said homo sapiens will not be able to survive the population explosion and “unbridled consumption,” and will become extinct, perhaps within a century, along with many other species.”

    Read more at: https://phys.org/news/2010-06-humans-extinct-years-eminent-scientist.html#jCp

    The moment the humans evolved their abilities, it was a done deal. There is nothing anyone can do except try and lessen their suffering and that of their loved ones.

  11. Anonymous on Tue, 31st Oct 2017 12:06 pm 

    It’s not that different from previous sales (just a tiny bit larger). The GOM production is at record levels. So much for peak oil predictions.

  12. Anonymous on Tue, 31st Oct 2017 12:11 pm 

    Apnea:

    Beware of doomer predictions. Paul Erlich was dramatically wrong in his predictions.

    The dangers to man (and the biosphere) from a nuclear war are much higher than from normal industrial development. Even in industrial development, eco types line up for marquee items that cause almost no global impact (drilling pads in the ANWR, platforms in the Gulf) and ignore bigger issues like overfishing, bycatch, and destructive nets that drag on the bottom of the ocean.

  13. deadlykillerbeaz on Tue, 31st Oct 2017 12:21 pm 

    I’m an apeman, the atmosphere is f*cking up my brain. I am an apeman. The Kinks

    https://m.youtube.com/watch?v=eEep67akIn4

    W. R. Grace got his start supplying the bidness of mining guano off the coast of South America on those islands that had guano.

    Another drunken Irishmen who made big money working coolies like slaves off the coast of Peru.

    Became a big name on Wall Street.

    The US gov passed the Guano Act and the guano became property of the US. The US gov gets its fingers into everything.

    All your guano to us belong.

    http://investor.grace.com/Mobile.View?c=112313

  14. Davy on Tue, 31st Oct 2017 12:46 pm 

    Sure Nony, everything is great. Go to the bar after work and celebrate like a cavalier sheeple. I wonder why you are here and for so many years. Are you maybe a closet doomer?

  15. DerHundistlos on Tue, 31st Oct 2017 1:00 pm 

    Anonyfraud-

    Be very aware of victory- mission accomplished predictions. Erlich’s timing may have been off, but his predictions for human extinction are lining up like bowling pins.
    And what are you crying about regarding Ape? Is reality too much for you to handle so it’s just easier to deny and say if I click my heels three times everything will be wonderful.
    Unbelievable. Your comment has been added to the registry of reasons why mankind must go extinct if the earth other life forms are to survive. You will hear your words again on the day of judgement.

  16. DerHundistlos on Tue, 31st Oct 2017 1:03 pm 

    Good job nailing Nony, Davy. I forgot that he likes to hide using other screen names. Damn, I thought the loser was gone for good.

  17. Outcast_Searcher on Tue, 31st Oct 2017 1:07 pm 

    If people didn’t want to burn oil, Trump’s selling of more leases in a glut wouldn’t matter much.

    But of course, the glut is receding and people DO want to burn oil — all they can as cheaply as they can.

    And this includes a huge proportion of the so-called “green” liberals, who won’t vote for a big (or any) CO2 tax when they have the chance. (See proposition 732, for example).

    We had better hope that technology and pricing makes EV’s the clearly superior deal, because that’s the only thing that will get ICE’s to quit being produced and run in greater and greater numbers — given that the governments are willing to do little more than kick the can down the road with the Paris climate accords or propose ICE bans in decades — when it will no longer be the problem of current politicians building their career.

  18. Dredd on Tue, 31st Oct 2017 2:38 pm 

    Smoke & Fumes

  19. Dredd on Tue, 31st Oct 2017 2:40 pm 

    Trump would love to lease to the Kremlin (Dept. of Justice Conspiracy Theories – 2).

  20. Anonymous on Tue, 31st Oct 2017 4:34 pm 

    Davy,

    I like chatting about oil but from the cornie slant. Should leave you all in peace. Will try again to stay away.

  21. Davy on Tue, 31st Oct 2017 5:59 pm 

    “I like chatting about oil but from the cornie slant. Should leave you all in peace. Will try again to stay away.”

    Nony, I value your knowledge of the oil complex and its associated markets. There is no reason to go but I would be remiss if I did not respond to something I feel is shallow and you comment was shallow. Just stick to the technicals and you shine. Playing a cornucopian cheerleader does not impress me. Peaker bashing is old news.

  22. Sissyfuss on Tue, 31st Oct 2017 6:09 pm 

    Trumpski is selling us all down the river while polluting it at the same time.

  23. Boat on Tue, 31st Oct 2017 6:16 pm 

    Demand for oil will keep growing until a cheaper alternative comes along. That is just a fact.

  24. rockman on Wed, 1st Nov 2017 3:12 pm 

    I think folks are a tad confused about the INSIGNIFICANCE of the lease sale. The GOM is a very mature trend with very little potential left compared to what has been produced. And collectively President Obama’s administration has offered more blocks for lease then any other POTUS in history. But again, like the leases offered by President Trump’s administration last Aug, not really much to be impressed by:

    “Lease Sale 249 offered approximately 76 million acres offshore Texas, Louisiana, Mississippi, Alabama, and Florida for oil and gas exploration and development. It included 14,220 unleased blocks.”

    And the results: “The sale generated $121,143,055 in high bids for 90 tracts covering 508,096 acres in federal waters of the Gulf of Mexico.” IOW only 0.7% of the acreage offered was leased. IOW there’s almost ZERO INTEREST by the petroleum industry for what’s left in the GOM. Such articles are spun to give the false impression that President Trump is spreading his legs and telling the industry they can have at it. LOL.

    Unfortunately the ignorant public, some of which hang out here, see 76 MILLION ACRES and start to hyperventilate. LOL.

    And as far as that odd statement that President Trump wants to lease to Russia: any company from any country that complies with the regs and bonding requirements is free to lease federal offshore drilling/production rights. And has been able to so so for decades. The only restriction is that such production cannot be exported. think folks are a tad confused about the significance of the lease sale. The GOM is a very mature trend with very little potential left compared to what has been produced. And collectively President Obama’s administration has offered more blocks for lease then any other POTUS in history. But again, like the leases offered by President Trump’s administration last Aug, not really much to be impressed by:

    “Lease Sale 249 offered approximately 76 million acres offshore Texas, Louisiana, Mississippi, Alabama, and Florida for oil and gas exploration and development. It included 14,220 unleased blocks.”

    And the results: “The sale generated $121,143,055 in high bids for 90 tracts covering 508,096 acres in federal waters of the Gulf of Mexico.” IOW only 0.7% of the acreage offered was leased. IOW there’s almost ZERO INTEREST by the petroleum industry for what’s left in the GOM. These sales results have been typical for many years. Such articles are spun to give the false impression that President Trump is spreading his legs and telling the industry they can have at it. LOL.

    Unfortunately the ignorant public, including some of which hang out here, see 76 MILLION ACRES and start to hyperventilate. LOL.

    And as far as that odd statement that President Trump wants to lease to Russia: any company from any country that complies with the regs and bonding requirements is free to lease federal offshore drilling/production rights. And has been able to so so for decades. The only restriction is that such production cannot be exported.

  25. Boat on Wed, 1st Nov 2017 5:56 pm 

    Cheeto offshore drilling

    On Monday, the Interior Department published notice in the Federal Register that it is seeking public comment on the effects offshore drilling would have on 26 areas in U.S. waters in the Gulf of Mexico, North Atlantic Ocean, Arctic Ocean and Pacific Ocean both off the coast of Alaska and the lower 48 states.

    https://www.washingtonpost.com/news/powerpost/paloma/the-energy-202/2017/07/05/the-energy-202-the-two-problems-with-trump-s-offshore-drilling-push/595a9f1ce9b69b7071abca53/?utm_term=.679214cafd62

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