IADC Statement on Lease Sale 257
For Immediate Release
Houston (16 September 2022) – On Wednesday, the Interior Department’s Bureau of Ocean Management (BOEM) announced reinstatement of the 307 highest valid bids from Gulf of Mexico Lease Sale 257, in accordance with congressional direction in the Inflation Reduction Act (IRA). After months of postponement of the sale’s intended date, the lease sale was held by BOEM in November 2021, bringing in a total of $189,888,271. In February of this year, a federal judge invalidated the results of oil and gas Lease Sale 257, stating that additional calculations of the lease plan’s potential greenhouse gas emissions were needed.
While BOEM’s announcement is encouraging, IADC continues to monitor related factors that may ultimately have an impact on Members. More specifically, IADC is currently working with Members and counsel to identify how IRA provisions detailing lease sales 258, 259, 261, and other related policies, may or may not be affected by ongoing litigation concerning federal oil and gas leasing. In response to BOEM’s announcement, IADC President Jason McFarland issued the following statement:
“BOEM’s reinstatement of Lease Sale 257 Act is a positive step forward for energy production in the Gulf of Mexico, which has lacked new oil and gas leases for almost two years. With the region being responsible for over 15% of all U.S. oil production, the importance of holding robust and timely offshore lease sales cannot be understated. As nations around the world experience rising energy costs and heightened geopolitical tensions, development of all forms of energy in the Gulf will be critical to ensuring lasting energy security for the U.S. and its global partners.“
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