Trump aims to expand U.S. offshore drilling, despite low industry demand

[rooster59]

Trump aims to expand U.S. offshore drilling, despite low industry demand

By Valerie Volcovici

 

U.S. President Donald Trump displays an Executive Order on "Offshore Energy Strategy" at the White House in Washington, U.S., April 28, 2017. REUTERS/Kevin Lamarque

 

WASHINGTON (Reuters) - U.S. President Donald Trump signed an executive order on Friday to extend offshore oil and gas drilling to areas that have been off limits - a move meant to boost domestic production but which could fall flat due to weak industry demand for the acreage.

 

The order could open up swathes of the Atlantic, Pacific and Arctic oceans, as well as the U.S. Gulf of Mexico, that former President Barack Obama had sought to protect from development after a huge BP <BP.L> oil spill in 2010.

 

"We're opening it up....Today we're unleashing American energy and clearing the way for thousands and thousands of high-paying American energy jobs," Trump said as he signed the order.

 

Trump had campaigned on a promise to do away with Obama-era environmental protections that he said were hobbling energy development without providing tangible benefits, pleasing industry and enraging environmental advocates.

 

But the executive order, called the America-First Offshore Energy Strategy, comes as low oil prices and soaring onshore production have pushed industry demand for offshore leases near their lowest level in years, raising questions over the impact.

 

A Reuters review of government data showed the amount of money that oil companies spent in the central Gulf of Mexico's annual lease sale dropped more than 75 percent between 2012 and 2017. Dollars bid per acre and the percentage of acreage receiving bids both declined more than 50 percent.

 

The figures were similar in the western Gulf of Mexico, the only other zone that got offers for leases during that period, according to the figures from the U.S. Bureau of Ocean Energy Management.

 

"The Trump administration’s hasty move today toward expanding offshore oil drilling ... defies market realities and is as reckless as it is unnecessary," said David Jenkins, president of Conservatives for Responsible Stewardship, a non-profit conservation group.

 

"Why on earth would someone choose to push drilling in the riskiest and most expensive places on the planet when the current oil glut will make such ventures unprofitable for the foreseeable future?" he said.

 

The president of the American Petroleum Institute trade group welcomed the order in a statement, while an API official said the order could help the industry over the long term. The official did not respond to a request for comment directly about current offshore lease demand.

 

"In order to meet U.S. energy needs, it is important to keep options open for the long term, so industry can start planning for and determining where the best prospects are and then make those investments the global economy will require over time," the official said, asking not to be named.

 

The order directs the U.S. Department of Interior to review and replace the Obama administration's most recent five-year oil and gas development plan for the outer continental shelf, which includes federal waters off all U.S. coasts.

 

Weeks before leaving office, Obama had banned new oil and gas drilling in federal waters in the Atlantic and Arctic oceans, protecting 115 million acres (46.5 million hectares) of waters off Alaska and 3.8 million acres in the Atlantic from New England to the Chesapeake Bay.

 

LEGAL BATTLE LOOMS

 

In addition to requiring a new five-year drilling plan, the order reverses Obama's decision to place certain parts of the Arctic permanently off limits to drilling. It also requires Commerce Secretary Wilbur Ross to review previous presidents' designations of marine national monuments and sanctuaries.

 

Jill McLeod, a partner at international law firm Dorsey & Whitney, said Trump's order was a positive signal to the oil industry but was unlikely to trigger a surge in exploration in the near term given the costs.

 

"The lifting of the ban does not necessarily make drilling in the Arctic a compelling proposition," she said.  

 

Environmental groups, including Oceana and the Center for Biological Diversity, criticized the order and promised to fight it in court. Democratic senators also opposed the order, saying it could threaten the fishing and tourism industries.

 

Friday's order came on the heels of a separate decree by Trump this week triggering a review of federally managed land to determine if they were improperly designated as national monuments by former presidents. The move is intended to expand federal areas available for development.

 

 

-- © Copyright Reuters 2017-04-29

 

[darksidedog]

20 minutes ago, rooster59 said:

Environmental groups, including Oceana and the Center for Biological Diversity, criticized the order and promised to fight it in court.

Does anyone ever remember so many executive orders from previous presidents ending up in the courts?

He seems desperate to push something through, but it all seems to be poorly thought through, controversial and largely unnecessary.

[NeilSA1]

This photo has similarities of those photos of the dear leader in N Korea, with all his smiling 'supporters'

[dunroaming]

Hasn't got a clue and just clutching at straws once again.

 

He can tick one box though.  No pressure on the cowboys to give up their guns anymore.  Green lights all the way thanks to Trump!

[maoro2013]

Well Obama gave away offshore drilling rights.

[soalbundy]

He will get something right one day.

[mamypoko]

pan·der

[soalbundy]

8 minutes ago, mamypoko said:

pan·der

-monium?

[Andaman Al]

1 hour ago, maoro2013 said:

Well Obama gave away offshore drilling rights.

Oh, he 'gave them away' did he. How did he do that and 'who' did he give them away to? 

[Andaman Al]

This all proves that Trump is actually in this game for his own profit.  America had a sly, cunning plot that was working. Claim all US major drilling areas are nature reserves - do not drill. Use the rest of the worlds oil, then when it all runs out, start drilling on US territory which has by then an almost monopoly on oil. Result - total control of the world for another 100 years.

 

The only reason to start drilling US oil now is profit for Exon and Trump (where is Tillerson).

[malibukid]

it's missile time again

[GOLDBUGGY]

Seems pretty obvious that the main goal for Trump for doing this move is to make the USA self reliant on oil, and not be at the mercy of the Arabs, or Mexico, or even Canada for Oil anymore. On theory, this may be a good idea.

 

It is about time Canada opened up new markets anyway. It is never a good idea having one customer buying up all your goods. Pretty well all there oil that is not used ends up in the USA. Time now to look ahead. Makes no sense sending Oil all the way to the USA, only to have them put it on a ship and then selling that to make a profit from that.  

[ilostmypassword]

4 hours ago, maoro2013 said:

Well Obama gave away offshore drilling rights.

Yes, he gave them away to the that nasty, avaricious, grasping group known as the American Citizenry. But not to worry. Trump is correcting that injustice by offering them to the humble fossil fuel industry which will make sure to properly lubricate the beaches, water, and wildlife. 

[boomerangutang]

1 hour ago, GOLDBUGGY said:

Seems pretty obvious that the main goal for Trump for doing this move is to make the USA self reliant on oil, and not be at the mercy of the Arabs, or Mexico, or even Canada for Oil anymore. On theory, this may be a good idea.

It is about time Canada opened up new markets anyway. It is never a good idea having one customer buying up all your goods. Pretty well all there oil that is not used ends up in the USA. Time now to look ahead. Makes no sense sending Oil all the way to the USA, only to have them put it on a ship and then selling that to make a profit from that.  

                      People who can see beyond the bulge in their wallets, are realizing that alternative energy is the wave of the future.  It's cleaner and cheaper than fossil fuels.   There are many innovations that Trumpsters either aren't aware of, or tightly close their eyes and ears to not know about.  

 

               Trump is also gearing up to cancel prior presidents' granting of National Monument status to beautiful natural park-like deserts/mountains/ocean expanses ......in order to please Tillerson and other fossil fuel executives.  The harm to the environment that Trump is planning for - will tarnish the US and outlying regions for decades after he gets his fat butt out of office.

[darksidedog]

1 hour ago, boomerangutang said:

                      People who can see beyond the bulge in their wallets, are realizing that alternative energy is the wave of the future.  It's cleaner and cheaper than fossil fuels.   There are many innovations that Trumpsters either aren't aware of, or tightly close their eyes and ears to not know about.  

 

               Trump is also gearing up to cancel prior presidents' granting of National Monument status to beautiful natural park-like deserts/mountains/ocean expanses ......in order to please Tillerson and other fossil fuel executives.  The harm to the environment that Trump is planning for - will tarnish the US and outlying regions for decades after he gets his fat butt out of office.

Trump clearly thinks himself a gift from the Gods, though I see him being written in history as being delivered directly from the devil.

Along with his foul associates.

[jerojero]

Yee haw! You betcha, Donny. F.the environment and pad the coffers of oil executives. You are such a fine public servant.

[mamypoko]

6 hours ago, soalbundy said:

-monium?

Alabama hot pocket?

 

[boomerangutang]

9 hours ago, darksidedog said:

Trump clearly thinks himself a gift from the Gods, though I see him being written in history as being delivered directly from the devil.  Along with his foul associates.

                                Thanks to your post, I picture the red-tailed devil (with arrow-point at end of tail), pointy ears, reddish-eyes, big yellow teeth, chewing rotten tobacco, trekking up the many miles from hell - to the planet's surface.  He's squinting, he's cold (because he's been acclimated to fiery hell), but he hands a primped-up package to Trump's parents (sometime in the 1940's).   Devil grins broadly, then turns and treks the long dark miles back down.  

 

                Trump's parents gleefully open the package, and there is a fat little baby boy with an orange tinge.  A child who won't learn right from wrong, who only likes people who praise him, who learns name-calling before he's out of plastic pants, who lies daily, who can't focus on reading for more than 70 seconds, and will keep those characteristics until the day he dies, an old sad orange-tinged man.

[GOLDBUGGY]

13 hours ago, boomerangutang said:

                      People who can see beyond the bulge in their wallets, are realizing that alternative energy is the wave of the future.  It's cleaner and cheaper than fossil fuels.   There are many innovations that Trumpsters either aren't aware of, or tightly close their eyes and ears to not know about.  

 

               Trump is also gearing up to cancel prior presidents' granting of National Monument status to beautiful natural park-like deserts/mountains/ocean expanses ......in order to please Tillerson and other fossil fuel executives.  The harm to the environment that Trump is planning for - will tarnish the US and outlying regions for decades after he gets his fat butt out of office.

I like your idea on alternate energy, and agree that it is cleaner. I am presently considering installing Solar Panels at my place. But cheaper it is not, and why fossil fuel continues to hold top spot in the market place.

 

We blame Oil Executives and Governments for holding back Alternate Energy, but in reality it is the Consumer that is holding this back as he is not willing to open his wallet and pay the extra money to have cleaner fuel. Solar Energy could be very popular in Thailand but how many places actually have it and use that?

 

When I was in Crete last the whole Island was basically run on Wind Mills for Electric Power. That concept sounds great but try to find a hotel that has air-conditioning. Even 5 Star Hotels only ran air-conditioning during the hottest part of the day as it was too expensive to run 24-hours a day. None could be found in the rooms.  

 

Canada recently imposed a Carbon Tax (Environmental Tax if you like) which has been strongly opposed by the Masses. For a Democratic Government to stay in power they have to be able to please the Masses. So until the price of Alternate Energy comes down or people are willing to pay the extra money to have and use it, then it will sadly always remain second place.

[Andaman Al]

4 hours ago, boomerangutang said:

                                Thanks to your post, I picture the red-tailed devil (with arrow-point at end of tail), pointy ears, reddish-eyes, big yellow teeth, chewing rotten tobacco, trekking up the many miles from hell - to the planet's surface.  He's squinting, he's cold (because he's been acclimated to fiery hell), but he hands a primped-up package to Trump's parents (sometime in the 1940's).   Devil grins broadly, then turns and treks the long dark miles back down.  

 

                Trump's parents gleefully open the package, and there is a fat little baby boy with an orange tinge.  A child who won't learn right from wrong, who only likes people who praise him, who learns name-calling before he's out of plastic pants, who lies daily, who can't focus on reading for more than 70 seconds, and will keep those characteristics until the day he dies, an old sad orange-tinged man.

Wow! You have a vivid imagination for 9am in the morning Boomer. I could probably have written something similar after indulging in a prolonged happy hour but not after coffee in the morning . You are definitely right though - spawn of Satan. Trump supporters were calling Obama the 'anti-Christ' and the Irony is we really have him in the oval office now.

[Dumbastheycome]

There  was  until recently that  I  believed  the  average   citizen  of the  USA  had  no  appreciation  of  black  comedy.

And then they  elected  Trump.

[Stargeezr]

Oil products are used in so many items, and not just the gas  tanks in your cars, but the oil, and grease, and other lubricants. as well as in clothes, and other articles.  Oil is in every ones future, and try to remember that even the electric and hybrid cars use oil and grease in their engines, and axles, and power steering and other systems. Some people seem to think that the world does not need oil for anything

except for the gasoline and diesel, and they are wrong.

Geezer

[Silurian]

22 hours ago, GOLDBUGGY said:

When I was in Crete last the whole Island was basically run on Wind Mills for Electric Power. That concept sounds great but try to find a hotel that has air-conditioning. Even 5 Star Hotels only ran air-conditioning during the hottest part of the day as it was too expensive to run 24-hours a day. None could be found in the rooms.  

 

There are vast improvements in wind turbines allowing for wind power in all types of wind. As new designs come out that are smaller, more efficient and wildlife friendly, this could be an excellent source of electrical power for the future. It would better if the US weans itself off of dirty fuels and non-environmentally friendly oil drilling and moves to a cleaner and unlimited power source. Heck, start to build these wind turbines in the USA and get people to work building and installing them!

 

 

[soalbundy]

Just now, Silurian said:

 

There are vast improvements in wind turbines allowing for wind power in all types of wind. As new designs come out that are smaller, more efficient and wildlife friendly, this could be an excellent source of electrical power for the future. It would better if the US weans itself off of dirty fuels and non-environmentally friendly oil drilling and moves to a cleaner and unlimited power source. Heck, start to build these wind turbines in the USA and get people to work building and installing them!

 

 

but, but, but, a lot of his friends and backers are in oil, got to look after your own, sod the planet.

[Credo]

With less need or interest in exploration, it means that companies can make low bids, which isn't good for the government coffers.   More money for the oil companies.