January 10, 2018 Read More →

Trump Team Removes Florida From Oil/Gas Leasing Plan

Bloomberg:

The Trump administration is ruling out plans to sell new drilling rights off the coast of Florida, including eastern Gulf of Mexico waters coveted by oil companies, amid pressure from Republican Governor Rick Scott.

The about-face came just five days after the Interior Department said it was considering selling oil and gas leases in more than 90 percent of U.S. coastal waters, including on all sides of Florida—the straits in the south, the Atlantic Ocean and the Gulf of Mexico. 

The eastern Gulf of Mexico was believed to be the most tempting new prospect for oil companies in the expansive Trump administration draft, because it is close to existing pipelines and processing facilities — not to mention the refineries in Texas and Louisiana.

There’s also little mystery about whether those eastern Gulf waters contain oil and gas. Energy companies already discovered a jackpot of natural gas roughly 30 years ago—at least 700 billion cubic feet and as much as 3 trillion cubic feet—in the Destin Dome, located about 25 miles south of Pensacola, Florida. And the same geological trends that have yielded major oil discoveries in other parts of the Gulf could be replicated in its easternmost reaches.

But opposition from Florida politicians concerned about oil spills fouling beaches as well as crippling the state’s tourism economy helped put that area off limits long ago, and a federal law now blocks new leasing through 2022.

More: https://www.bloomberg.com/news/articles/2018-01-10/trump-yanks-florida-from-offshore-drilling-plan-after-objections

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