The Maryland Federal Judge’s ruling to vacate approval of some oil and gas drilling operations in the Gulf of Mexico has angered several oil and gas and energy groups.
Six of them came out Tuesday opposing U.S. District Judge Deborah Boardman’s recent decision to vacate the 2020 Gulf of Mexico Biological Opinion, a ruling they said could lead to a shut down of a “wide and substantial swath of offshore oil and gas operations and activities on Dec. 20, 2024.”
The judge ruled the National Marine Fisheries Service and its recommendations how to protect endangered and threatened marine species from the effects of oil and gas drilling in the Gulf of Mexico were in violation of federal law. She found, in her 84-page decision that the recommendations did not consider the potential for a repeat of the 2010 BP Deepwater Horizon oil spill.
The Energy Workforce & Technology Council, Independent Petroleum Association of America, US Oil and Gas Association, National Ocean Industries Association, Western Energy Alliance,and the International Association of Drilling Contractors stated the shutdown is likely ” unless a legal, regulatory or legislative solution that prevents a gap between biological opinions is in place before then.”
The organizations pointed out that the Biological Opinion was meant to serve as the primary Endangered Species Act consultation for most oil and gas activities in the Gulf of Mexico, with only a few additional actions requiring further review.
With the current ruling, all oil and gas operations in the Gulf of Mexico would be forced to halt on December 20, 2024, unless a legal, regulatory or legislative fix is in place before then. This would include those with past leases at the time the 2020 opinion was issued, regardless of when the lease was awarded, in addition to all actions associated with new leases through approximately 2030.
“The recent decision to vacate the BiOp poses a potentially grave threat to America’s energy security and economic prosperity,” said Energy Workforce President Tim Tarpley. “This misguided ruling could shut down oil and gas operations across the Gulf of Mexico and jeopardize hundreds of thousands of jobs and billions in economic activity.”
Dan Naatz, Chief Operating Officer for the Independent Petroleum Association of America claimed independent oil and natural gas producers in the Gulf adhere to the highest environmental and safety standards.
“If production in the area were to stop, the United States’ energy security and supply would be severely impacted, along with the livelihoods of all those who work in the offshore oil and natural gas industry and in gulf state communities.”
Another group disturbed about the ruling is the US Oil and Gas Association where Tim Stuart is the President.
“If allowed to go into effect, this decision is about to cause massive price shocks across all sectors of our economy and every business, small and large, from manufacturing and agriculture to transportation and technology, will feel it. National security and our balance of trade are about to be impacted. Worst of all – within weeks, millions of low- and moderate-income families will find themselves pushed back into energy poverty. Immediate action must be taken to overturn this ruling.”
Erik Milito, President of the National Ocean Industries Association said the ruling has the potential to cause disruptive economic consequences for the U.S.
“Any disruption due to vacatur of the 2020 Biological Opinion could not only impact hundreds of thousands of energy workers in the region but would potentially increase energy insecurity by jeopardizing oil production coming from the Gulf of Mexico, which is responsible for nearly 15% of total U.S. crude production.
Kathleen Sgamma, President of the Western Energy Alliance said her group stands in solidarity with the others.
“We have likewise seen how judges far removed from production areas have underappreciated the local economic and social impacts of their rulings in other states. Further, the ruling went far beyond what even the environmental plaintiffs thought was reasonable.”
Jason McFarland, President of the International Association of Drilling Contractors said the decision to vacate the 2020 Biological Opinion fails to consider the far-reaching consequences that will extend well beyond the Gulf of Mexico.
“The arbitrary December 2024 deadline is woefully inadequate for developing a sustainable solution. It’s imperative that Congress and the Administration provide the National Marine Fisheries Service with sufficient time and resources to conduct a thorough, science-based review. Rushing this process risks compromising both environmental protections and energy security. “