Biden’s offshore oil plan pleases no one

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Sep 29, 2023 View in browser   By Arianna Skibell Presented by An oil drilling rig at sunset in the Gulf Of Mexico. | Getty Images President Joe Biden’s plan to hold three offshore oil lease sales in the next five years is not winning many friends. The long-awaited lease proposal is another White House effort to find a middle ground on fossil fuel production. The blueprint greenlights new offshore oil exploration as fuel prices remain high, but caps drilling in federal waters as a response to climate change. The schedule would be the lowest number of auctions in the program’s history. And no lease sale would take place in 2024, making it the first year in four decades that companies will be unable to bid for parcels in the Gulf of Mexico or the waters off Alaska, writes Ben Lefebvre. Yet the plan also reneges on Biden’s campaign pledge to end new offshore drilling. Rock meets hard place The United States is on track to pump record volumes of oil this year. Despite that, prices are approaching $100 a barrel amid production cutbacks from Saudi Arabia and other OPEC members. That’s kept gasoline prices high and introduced a political headache for Biden and other Democrats heading into next year’s election. The administration has come under pressure from Gulf Coast states and the oil industry to sign off on a new five-year plan since the last lease cycle ended in June 2022. The response to the proposed plan was scathing. “Only holding three lease sales over the next five years in the Gulf of Mexico doesn’t even qualify as bare minimum effort,” said Republican Sen. Bill Cassidy of Louisiana. “It’s a slap in the face to American energy workers and a pat on the back to [Vladimir] Putin and OPEC dictators.” The administration said the limited schedule aligns with its goal to reach net-zero carbon emissions across the U.S. economy by midcentury, writes Heather Richards. The proposal also falls in line with a prohibition put in place by Congress on new offshore wind projects until federal leases for oil drilling are put up for bid. Risking a green backlash But the failure to meet a key campaign promise risks further alienating young voters and climate activists still reeling from the administration’s approval of ConocoPhillips’ $8 billion Willow oil project in Alaska. “This decision is beyond disappointing, as Americans face the impacts of the growing climate crisis through more frequent and intense fires, droughts, hurricanes, and floods,” Beth Lowell, Oceana’s vice president for the United States, said in a statement. July was the hottest month in recorded history, with the heat index nearing 150 degrees Fahrenheit in parts of the Middle East.   Thank goodness it's Friday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. And folks, let’s keep it classy.   A message from bp: bp added more than $70 billion to the US economy last year. We did it by making investments from coast to coast – like almost doubling our capacity to produce biodiesel in Washington state AND bringing a new platform online in the Gulf of Mexico. See how else bp is investing in America.   Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Jordan Wolman breaks down how California may have cleared a path for the Securities and Exchange Commission to finalize its climate risk disclosure rule.   A message from bp:   Obituary Dianne Feinstein in her office after she was elected mayor of San Francisco in 1978. The Senator died Thursday at age 90. | Nick Allen/Pictorial Parade/Archive Photos/Getty Images Feinstein's pragmatic environmental legacy In her nearly 30 years in the Senate, Dianne Feinstein — who died Thursday at the age of 90 — had significant roles shaping a host of environmental policies, often with a pragmatic approach that neither political party was completely happy with, writes Timothy Cama. In recent years, Feinstein’s focus included relief efforts for the West’s recurring droughts, where she often worked with Republicans. Her death leaves a gaping hole in California’s water politics, write Camille von Kaenel and Debra Kahn. Power Centers iStock Green layoffs abound The Sierra Club announced staff layoffs in April. Defenders of Wildlife soon followed suit. And this week, the Natural Resources Defense Council laid off dozens of its employees, writes Robin Bravender. So what’s going on with big green groups? National environmental nonprofits are being hit by a combination of factors making fundraising harder and hurting their budgets. Those same factors could also spell trouble for other green groups that haven’t yet laid off staff. Factory shortage stalls offshore wind An overburdened supply chain has sent the cost of offshore wind projects soaring, threatening to sink several developments planned along the East Coast, writes Benjamin Storrow. The issues could kneecap the climate ambitions of coastal states from Massachusetts to Maryland and pose a stiff test of “Bidenomics” — the president’s attempt to marry emission reductions with a green manufacturing revolution. Germany warns against protectionism German Chancellor Olaf Scholz voiced concern that a European Union probe into potentially illegal subsidies for Chinese electric vehicles could be overly protectionist, write Joshua Posaner and Hans von der Burchard. "The economic model which I favor is to have global competition," Scholz said. There are other concerns the probe risks a full-blown trade war with China. In Other News No water, roads or emergency services: How climate change left a rural neighborhood nearly uninhabitable. Religion: The pope is concerned about climate change. Here's what Catholics in the U.S. think.   GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.     Subscriber Zone A showcase of some of our best subscriber content. EPA Administrator Michael Regan appears before a House committee Wednesday as a government shutdown loomed. | Mark Schiefelbein/AP Photo The Environmental Protection Agency was already facing a mad dash to complete climate rules in the next six months. Here's how a government shutdown could make that harder. Drought conditions in the Northwest could reduce the nation’s hydropower generation by as much as 6 percent this year compared with last year. U.S. Trade Representative Katherine Tai pressed her Mexican counterpart to resolve concerns over energy, steel and telecommunications issues that are causing increased trade friction. That's it for today, folks. Thanks for reading, and have a great weekend!   Enter the “room where it happens”, where global power players shape policy and politics, with Power Play. POLITICO’s brand-new podcast will host conversations with the leaders and power players shaping the biggest ideas and driving the global conversations, moderated by award-winning journalist Anne McElvoy. Sign up today to be notified of the first episodes in September – click here.       A message from bp: bp’s US workforce – our largest in the world – is keeping oil and gas flowing AND developing more lower carbon energy. It’s our “and, not or” approach at work. Since 2019, our global investment outside of oil & gas has gone from 3% to 30%, and we’re on our way to 50% by 2030. Learn more.     Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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