Louisiana oil and gas industry concerned for the future due to planned decrease of offshore leases

LAKE CHARLES, La. (KPLC) – A big change to how oil and gas companies do business in the Gulf.The Biden administration plans to decrease the number of offshore oil and gas leases over the next 5 years.As you can imagine, that was a hot topic at this week’s annual meeting of the Louisiana Oil and Gas Association.The administration said oil and gas companies would be able to drill in just three new areas in the Gulf between 2024 and 2029.

This decision left much of the LOGA Board concerned for the future.“If you look at the leasing program that the administration finalized in December, it offers the fewest leases in the program’s history. This year, 2024 will be the first year in the program’s history that we will not have a single offshore lease sale. Again, we think that is a fundamentally misguided view,” said LOGA member Dustin Meyer.The five-year program includes an oil sale every other year, in 2025, 2027, and 2029.Climate advocates want the administration to end new leasing altogether.Also discussed, the Biden administration’s decision to halt future LNG projects.

“There’s tremendous buyer demand from every corner of the globe. They want more U.S. gas. We have a long history of making that supply available until now. That success story is jeopardized by this administration’s really misguided decision,” said Meyer.Meyer says apart from leasing the oil and gas industry is focused on reducing emissions especially when it comes to methane.