As part of the Inflation Reduction act, signed this week by President Biden, federal authorities will reinstate over 300 of the highest offshore lease bids from a lease sale last November, but nullified by a federal judge earlier this year. Louisiana Oil & Gas Association (LOGA) President Mike Moncla says the news came as a surprise…
“I was kind of expecting them to get another liberal judge to overturn yet another one of our judges here in Louisiana. So, it’s been back and forth and I was kind of expecting this to go to the Supreme Court at some point,” he says.
The Bureau Of Energy Management’s reinstatement means about $190-million in lease investments by oil & gas companies can move forward. Moncla is grateful to Attorney General Jeff Landry for continuing to fight for state energy interests…
“I’m taking it as a victory, and we’re excited for our members that have had their money somewhat held hostage with the federal government since that November of the lease sales.”
Moncla says the reversal by the White House is an important victory for the quarter-million oil & gas workers in Louisiana, and for everyone feeling the pinch of inflated energy costs. He says perhaps the Biden Administration finally saw the “handwriting on the wall”…
“When they’re getting beat on the numbers every month, you know, with inflation numbers going up, fuel prices going up and they continue to beat up oil & gas…I think they finally decided to throw in the towel.”
Moncla says the reinstated lease sales does not equal permission to drill right away. He says that requires seismic studies and federally-issued drilling permits; which he says are still hard to come by.
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