Court Allows Energy Drilling in Gulf to Continue
The Department of Commerce’s National Marine Fisheries Service will get more time to assess the impact of traditional energy activity on certain wildlife in the Gulf of Mexico, a federal judge ruled this week (Reuters). This assessment is a requirement for drilling in the region.
- This ruling is “a win for producers, who can now continue operations using the old guidance,” according to Bloomberg Government (subscription).
The background: In an August NAM-opposed ruling, U.S. District Judge Deborah Boardman had said the existing NMFS “biological opinion” on the effects of drilling on marine life “did not adequately address risks species face.”
- She gave the agency until Dec. 20 to write a new one, though drilling activities were allowed to continue in the interim.
- This Monday, Boardman extended the deadline to May 21, 2025, giving the agency more time to review.
Why it’s important: If the judge hadn’t granted the extension, the existing biological opinion would have lapsed—a major problem for energy companies.
- “Without a valid biological opinion in place, federal authorities likely would have been forced to consult on hundreds—if not thousands—of decisions annually. Some experts warned the situation could have forced operations in the Gulf to grind to a halt,” Bloomberg noted.
The potential cost: A stoppage in oil-and-gas activity in the region could cost hundreds of thousands of jobs, according to the American Petroleum Institute (Engineering and Technology), an NAM advocacy partner.
The NAM says: “The U.S. Gulf of Mexico production accounts for about 2 million barrels of oil each day,” said NAM Director of Energy and Resources Policy Michael Davin. “It’s a vital part of a sensible, all-of-the-above energy strategy, and we cannot afford to lose it or the well-paying jobs it sustains.”