Tight deadline for Biden administration’s final push on offshore drilling cleanup
The Biden administration plans to propose a rule in January to ensure offshore oil operators can afford environmental cleanup costs, potentially reshaping the offshore fossil fuel industry before President-elect Donald Trump takes office.
Heather Richards reports for E&E News.
In short:
- The proposed "fitness to operate" rule would bar companies with poor compliance or inadequate finances from acquiring offshore oil leases, aiming to address the growing backlog of abandoned wells and infrastructure in the Gulf of Mexico.
- More than 75% of idle offshore infrastructure in the Gulf of Mexico is overdue for decommissioning, with over 2,700 wells and 500 platforms awaiting cleanup.
- Costs could surpass $5.6 billion as decommissioning demands increase by decade’s end.
- Industry leaders remain divided, with concerns that stricter rules might force smaller companies out while benefiting larger operators who often absorb liabilities for abandoned sites.
Key quote:
“If you don’t meet your safety obligations, your environmental obligations and your decommissioning obligations, then you lose your ability to operate.”
— Andrew Hartsig, senior director of the Arctic program at the Ocean Conservancy.
Why this matters:
Offshore oil wells pose environmental risks when abandoned, including leaks and spills, while cleanup costs often fall to taxpayers. With intensifying storms and a global shift from fossil fuels, ensuring financially secure operators is crucial for safeguarding marine ecosystems and public funds.
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