"The 2026-2031 draft unveiled on Thursday has sales up and down California's coast, Alaska's Arctic seas and other shores, and closer to Florida, in addition to current hubs. Catch up quick: Lease sales off Alaska would start next year, with California auctions starting in 2027 and eastern Gulf bidding in 2029. It also offers lots of tracts in the western and central Gulf, where drilling and production are already common."
"A few things on our radar... 🍔 Industry's uncertain Alaskan appetite. Oil groups applauded the plan, and they're certainly psyched for more Gulf sales after Biden-era reticence. But interest in remote, costly, and controversial projects off Alaska is a big question mark. It'll depend how companies with the money and know-how to operate there see future prices and demand - and odds that a future White House is supportive."
"🗳️ The high-energy politics. It's a new collision between Trump officials and California Gov. Gavin Newsom (D), who's weighing a 2028 run. Newsom, California AG Rob Bonta, and the state's senators pledged to fight the plan. So did environmental groups. Waters off California's southern coast were once an industry hot spot. There's still some legacy production there. It's also an intra-GOP fight, with Florida Gov. Ron DeSantis (R) criticizing Interior's proposal via aides."
The 2026–2031 offshore leasing draft schedules lease sales off Alaska beginning next year, California auctions in 2027, and eastern Gulf bidding in 2029. The plan includes many tracts in the western and central Gulf where drilling and production already occur. Oil companies reacted positively and anticipate more Gulf opportunities after prior administration restraint, but interest in expensive, remote Alaskan projects remains uncertain. Corporate decisions will hinge on price and demand forecasts and potential future presidential support. The proposal has sparked political opposition from California officials and environmental groups, and intra-party disputes, with legal challenges likely once finalized.
#offshore-oil-and-gas #alaska-leasing #california-opposition #gulf-of-mexico #legal-and-political-disputes
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