Interior Department News

The U.S. Interior Department on Tuesday approved the country's eighth commercial-scale offshore wind project, which will be built off the coast of Massachusetts, bringing online electricity to power more than 900,000 homes.The approval for Avangrid’s New England Wind Project brings the U.S. one-third of the way to President Joe Biden's goal of permitting 30 gigawatts of offshore wind capacity by 2030—a key part of the president's climate change agenda.The project comes just a week after the Interior Department approved another offshore wind project, Orsted's Sunrise Wind, in New York.

The Biden administration on Tuesday gave final approval to Orsted and Eversource's Sunrise Wind offshore wind facility, which is expected to provide power to more than 320,000 homes in New York.The announcement was the latest positive development for the project, which Denmark's Orsted warned just months ago could fail without a new contract that would cover soaring costs for equipment and financing.Orsted and Eversource said separately that they had taken a final investment decision…

Ørsted has installed and powered up all 12 turbines at the landmark South Fork project, and the first utility-scale U.S. offshore wind farm has started delivering power to Long Island and the Rockaways, offshore New York.The commissioning of the wind farm is in its final stage, and when at full capacity of 130 MW, it will generate enough renewable energy to power approximately 70,000 homes.The renewable energy is generated roughly 35 miles off the coast of Montauk, and will eliminate up to six million tons of carbon emissions over the life of the project…

Oil and gas companies and environmental groups on Monday filed dueling legal challenges to the Biden administration's five-year plan to offer drilling leases in the Gulf of Mexico.The petitions to a U.S. appeals court come four months after the Interior Department unveiled a congressionally-mandated plan for offshore leasing that included just three sales, the lowest since the government began publishing the schedules in 1980.The American Petroleum Institute, an oil and gas trade group…

A Biden administration auction of Gulf of Mexico drilling rights raised $382 million on Wednesday as oil companies claimed offshore acreage for what is set to be the last time until 2025.The auction total was the highest of any federal offshore oil and gas lease sale since 2015, according to a Reuters tally.Shell, Hess, Anadarko, BP, Chevron, Repsol and Equinor were among the 26 companies that participated in the sale.Anadarko had the auction's highest bid of more than $25 million for a block in the deepwater Mississippi Canyon area, according to an online broadcast of the sale by the U.S.

The Biden administration on Monday announced a plan to sell offshore wind development rights for two areas off the coasts of Delaware, Maryland and Virginia next year.The proposed sale by auction is the latest effort by President Joe Biden's Interior Department to accelerate the expansion of offshore wind energy to combat climate change.The administration has forged ahead with its ambitious offshore leasing plan despite soaring industry costs and supply chain constraints that have derailed some projects.

Around 61,165 barrels of daily oil output from at least six producers, making up about 3% of crude oil production in the Gulf of Mexico, has been shut in by Third Coast Infrastructure's underwater pipeline leak, the U.S. Coast Guard said on Wednesday.The oil producers whose facilities are impacted include W&T Energy, Occidental Petroleum, Walter Oil and Gas, Cantium, Arena Offshore and Talos Energy Ventures, the Coast Guard said, citing the U.S. Interior Department's Bureau of…

The U.S. Department of the Interior on Thursday approved the Empire Wind offshore project, owned by Equinor and BP, the sixth commercial-scale wind farm to be greenlit under President Joe Biden's administration.Empire Wind is among several offshore wind projects facing construction and financing cost blowouts that the troubled industry says would not be covered by existing power sales contracts, but it could be helped by a new auction planned by New York state.Along with Danish counterpart Orsted, Equinor and BP have taken a combined $5 billion of writedowns on U.S.

A U.S. appeals court on Tuesday ordered that a postponed federal auction of drilling rights in the Gulf of Mexico be held within 37 days, a setback for environmentalists seeking expanded protections for the endangered Rice's whale.According to court papers, the New Orleans-based U.S. Court of Appeals for the 5th Circuit dismissed an effort by four green groups to block an expansion of the sale ordered by a lower court judge in September.The judges said the groups lacked standing to challenge the September decision.

The Biden administration on Thursday postponed a Nov. 8 sale of offshore drilling rights in the Gulf of Mexico pending the outcome of a lawsuit over oil and gas development and federal protection of an endangered species of whale.The move comes after a U.S. appeals court on Oct. 26 temporarily paused a lower court order requiring the Interior Department's U.S. Bureau of Ocean Energy Management (BOEM) to expand the auction, which was originally scheduled to be held in September.Oral arguments are scheduled for Nov.

The Biden administration on Wednesday said it is committed to supporting the nascent U.S. offshore wind industry despite challenges that prompted the cancellation this week of two major planned projects off the coast of New Jersey.The White House and Interior Department both issued statements backing the sector shortly after Denmark's Orsted said soaring cost inflation, high interest rates and supply chain bottlenecks had forced it to stop development on the projects. Expansion of offshore wind is a key pillar of President Joe Biden's plan to decarbonize the U.S.

A U.S. appeals court on Thursday temporarily paused a federal judge's order last month that had required the Biden administration to expand a planned offshore oil and gas auction in the Gulf of Mexico by 6 million acres (2.4 million hectares).The U.S. Court of Appeals for the 5th Circuit stayed the September decision pending an appeal, according to a court document. Oral arguments are scheduled for Nov. 13 in New Orleans.The order was the latest in a legal fight over offshore drilling and federal protection of an endangered species of whale.

A U.S. judge has rejected challenges to federal environmental permits and construction approvals for a $4 billion offshore wind farm near Massachusetts, which commercial fishing groups have claimed will harm whales and impair their businesses.U.S. District Judge Indira Talwani in Boston last Thursday tossed the final two federal district court lawsuits directly challenging the Vineyard Wind project roughly 15 miles south of Martha’s Vineyard, which would be the first commercial…

Despite the negative headlines around the longer-term prospects for the U.S. offshore wind segment, business intelligence company Intelatus Global Partners sees continued efforts by the federal government and, in particular, the East Coast states to find solutions to the challenges faced by the industry as whole, which can be grouped under three headings: high inflation, supply chain development and high interest rates.On the side of the federal government, offshore wind leasing and permitting is being prioritized over oil and gas development.

U.S. Deputy Interior Secretary Tommy Beaudreau is stepping down from his role at the end of October, the Interior Department said in a statement on Wednesday, without giving a reason for his departure or saying how the vacancy would be filled.The Washington Post reported earlier Beaudreau was leaving after two years in the number two spot and a total of 10 years at the agency to spend more time with family.Earlier this year, Beaudreau signed the final approval for a scaled-back version of ConocoPhillips' (COP.N) $7 billion Willow project to drill for oil and gas in Alaska…

The Biden administration's plan to slash offshore oil and gas leasing drew fire from both the fossil fuel industry and environmentalists on Friday, with energy companies saying it will raise fuel prices and greens saying it undermines efforts to stop global warming. The criticism from both sides reflects the difficulty Biden's White House has had in dealing with U.S. oil extraction policies, as it seeks to balance national energy security with the need to cut greenhouse gas emissions to fight climate change.

The Biden administration on Friday unveiled a plan to phase down oil and gas auctions in federal waters with the release of a long-awaited leasing schedule that includes a maximum of three sales in the Gulf of Mexico through 2029.The Interior Department's plan includes by far the lowest number of sales since the agency began producing Congressionally-mandated five-year oil and gas leasing schedules in 1980. Previous programs have ranged between 11 and 41 sales, according to Interior's U.S.

The Biden administration's five-year plan for offshore oil and gas leasing will not include any sales in 2024 and will feature the lowest number of auctions in the history of the program in the four years to follow, according to three sources familiar with the matter.The schedule for leasing in the Gulf of Mexico and Alaska for 2024-2028 is due on Friday following several delays and months of battling between environmentalists and drilling advocates over what the policy should…

The U.S. Interior Department's Bureau of Ocean Energy Management (BOEM) said on Tuesday it will postpone its next sale of oil leases in the Gulf of Mexico.The agency said it will not hold Lease Sale 261 on September 27, 2023, as originally planned as a result of last week's ruling by the U.S. Court of Appeals for the Fifth Circuit ordering an expansion of acreage being offered after BOEM earlier reduced the area in an effort to protect an endangered whale species."The order allows time for a more orderly lease sale process…

A federal judge in Louisiana has ordered an expansion of next week's sale of oil leases in the Gulf of Mexico, saying the Biden administration must include additional acreage, according to a court ruling issued late on Thursday.The oil and gas industry, which had sued the administration,  welcomed the decision to restore 6 million acres to the auction after the Interior Department's Bureau of Ocean Energy Management earlier reduced the area available for lease in an effort to protect an endangered whale.U.S.

Only one of three available areas was sold during the United States' first ever offshore wind lease sale in the Gulf of Mexico on Tuesday.The auction, held by the Interior Department's Bureau of Ocean Energy Management (BOEM) offered up three sites for offshore wind development, including one in Louisiana (Lake Charles) and two in Texas (Galveston I and II). Together, the three shallow water sites contain a theoretical potential of 3.7 gigawatts (GW). While 16 companies had prequalified to participate in the auction, bid activity was subdued.

The U.S. Gulf Coast region, the nation's primary offshore source of oil and gas, has cheap electricity and lacks state mandates for renewable energy procurement, making it an unlikely place to expand one of the most expensive forms of clean energy.That is why players in the nascent U.S. offshore wind industry are looking beyond the grid when the Biden administration holds the first-ever offshore wind auction in the Gulf of Mexico on Tuesday, eyeing the sale instead as a way to…

An oil and gas industry trade group, the state of Louisiana and Chevron on Thursday sued the Biden administration over its decision to withdraw acreage from an upcoming oil and gas lease sale in the Gulf of Mexico to protect an endangered whale.The suit is the latest dispute between the oil and gas industry and the administration of President Joe Biden over leasing federal lands and waters for energy development.Biden paused federal drilling auctions shortly after taking office in 2021 as part of his climate change agenda…