Page 19: of Marine News Magazine (October 2023)

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capricious. Notably, the court wrote: Moreover, emerging offshore energy try and offshore oil and gas companies

The process followed here looks more sectors, such as offshore wind and off- have a strong synergy and overlap, the like a weaponization of the Endan- shore carbon sequestration, depend on leasing process for offshore wind is le- gered Species Act than the collabora- the expertise of companies integral to gally connected to offshore oil and gas tive, reasoned approach prescribed by the offshore oil and gas industry. These lease sales. Due to the In? ation Reduc- the applicable laws and regulations. areas involve marine construction and tion Act, offshore wind leases can only

Even when an agency’s decision is vessel support, and the success of the be granted if there has been a suf? cient- based on political considerations, it is Gulf of Mexico’s oil and gas sector ly large offshore oil and gas lease sale, or not excused from justifying the posi- impacts the potential for new Ameri- sales, within one year prior. In simpler tion—particularly when the decision can offshore wind farms and Gulf of terms, if offshore oil and gas lease sales is a pivot from a prior policy. Failure Mexico carbon sequestration projects. don’t continue, it could result in a sud- to do so leads to a ‘surprise switcheroo’ In addition to the growing number den halt to offshore wind leasing.

by an agency against regulated entities. of offshore wind projects along the At- To address these challenges, we

The U.S. Court of Appeals for the lantic coast – many of which now have must engage in constructive dialogues

Fifth Circuit granted an emergency steel in the water - there have been lease with policymakers, regulatory agen- stay in response to the preliminary sales off our Paci? c Coast as well as in cies, and stakeholders. We must work injunction. However, they upheld the the Gulf of Mexico. Offshore wind together to ? nd solutions that balance injunction and only allowed Lease project development, construction and energy development, environmental

Sale 261 to be delayed to November 8, operations are expected to support up to protection, emissions management, 2023, instead of its originally sched- 83,000 American jobs by 2030, with in- and economic growth. Our work uled date of September 27, 2023. dustry investment set up to deliver $25 must continue with leaders in Wash-

These actions have far-reaching im- billion per year in economic output. ington on both sides of the aisle and plications, affecting not only our in- However, there’s a signi? cant condi- on both ends of Pennsylvania Avenue dustry but also the broader economy, tion attached to the success of offshore to address our energy policy through energy security, and environmental wind. While the offshore wind indus- the lens of our energy realities.

stewardship for the country.

The offshore energy industry’s monumental uncertainty impacts companies’ ability to make invest- ment decisions and plan for future projects. This lack of clarity sti? es in- novation, hinders economic growth, and may divert investments to other regions around the world.

The U.S. Gulf of Mexico, despite its proli? c reserves, skilled workforce, and robust infrastructure, risks losing its attractiveness for energy development without access to new acreage and energy projects. The region currently supports hundreds of thousands of jobs, billions of dollars in investments, and generates substantial annual gov- ernment revenue, which will diminish without continued development.

Amid soaring in? ation, especially in energy prices, and global instability, the U.S. and our allies lose a strategic advantage if production in the Gulf of

Mexico falters.

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