Biden administration postpones auction for rights to drill offshore

The Biden administration has postponed an auction for rights to drill for oil in the Gulf of Mexico, saying it’s waiting for further court direction. 

The administration had originally been slated to hold an offshore oil lease sale in September, as the rights auction was mandated to be held by the Democrats’ climate, tax and health care bill. 

But it announced a delay amid ongoing litigation related to the auction. 

In a written statement Thursday, the Bureau of Ocean Energy Management (BOEM) cited legal uncertainty in its reasoning for the delay. 

“Until the court rules, BOEM cannot be certain of which areas or stipulations may be included in the sale notice,” it said. 

The state of Louisiana, as well as Chevron and a leading oil and gas trade group, took issue with provisions added to the sale aimed at protecting the Rice’s whale.

Fewer than 100 Rice’s whales likely remain, making it one of the most endangered whales in the world. 

Chevron, Louisiana and the American Petroleum Institute sued in August, and a federal court initially blocked the provisions shrinking the area that would be offered up and restricting ship activity. 

It also ordered the administration to hold the lease sale by Sept. 30. 

An appeals court later delayed that to Nov. 8, and still later lifted that deadline.

The delay announced Thursday received pushback, both from the oil industry and from Sen. Joe Manchin (D-W.Va.), a key Senate swing vote who has supported the oil auction.

“BOEM is once again blaming the courts for delaying the sale, but the delays are entirely the administration’s fault,” Manchin said Thursday. 

“The Department of the Interior was so eager to meet the demands of environmental groups to restrict the sale that it bypassed important legal requirements, leading to this litigation,” he added.