During a U.S. House Natural Resources Energy & Minerals Subcommittee budget oversight hearing today, Bureau of Ocean Energy Management Director Liz Klein testified along with the Bureau of Safety and Environmental Enforcement Deputy Director Paul Huang and the Director of the U.S. Geological Survey.
Among other things, Republicans underscored the importance of offshore oil and gas, stressed the need for leasing in the Gulf of Mexico, and expressed concerns that 2024 lease sales will not be able to proceed since the environmental review process has not yet started, with Committee Chair Bruce Westerman (AR) asking whether BOEM will speed up environmental review processes given statutory mandates that condition offshore wind leasing on offshore oil and gas lease sales.
Democrats meanwhile expressed concerns about abandoned oil and gas infrastructure and noted the importance of incorporating state/community perspectives, climate impacts, and other considerations into decisions on offshore oil and gas leasing and royalty rates.
In addressing questions, BOEM Director Klein noted that the Proposed Five-Year Plan for 2023-2028 offshore oil and gas lease sales will be released in September, with a final decision before the end of 2023 that will reflect consideration of a range of factors. She also highlighted BOEM’s authority to set royalty rates for offshore oil and gas, stating that the 18.75% rate for the Cook Inlet lease sale was set to ensure a fair taxpayer return/internalization of costs for producers and address climate change impacts.
