Saving Seafood

Offshore Wind Bonanza Draws Bidding War in Record-Setting Sale

December 14, 2018 — Companies competed Thursday for the opportunity to install wind turbines in Atlantic waters off Massachusetts in an auction that shattered records even as it headed toward a second day of frenzied bidding.

After 24 rounds of sealed bidding, companies had already pledged $285 million toward the three offshore wind leases that are up for grabs — more than six times the previous high-water mark: Norwegian energy company Equinor ASA’s $42.47 million bid in 2016 for the rights to build an offshore wind farm near New York.

High bids in the offshore wind auction, set to resume Friday, also already eclipsed the $178 million the U.S. government collected in its August sale of offshore drilling rights in the Gulf of Mexico.

By Thursday evening, when Interior Department officials called an overnight halt to the auction, four companies were still vying for the territory, drawn by growing demand for renewable power in the Northeast U.S. and a chance at gaining a foothold in the nation’s growing offshore wind market.

“The unprecedented interest in today’s sale demonstrates that not only has offshore wind arrived in the U.S., but it is set to soar,” said Randall Luthi, head of the National Ocean Industries Association.

Active Bidders

Some 19 companies were deemed qualified by the Interior Department to participate in the auction — higher than in any of the previous seven competitive sales of wind leases in U.S. waters. The prospective bidders included units of established offshore wind developers and renewable power companies that have primarily focused on land as well as oil companies such as Equinor and Royal Dutch Shell Plc.

Eleven companies were actively bidding at the start of Thursday’s sale, nearly twice the most-recent record, in 2016, when six developers competed for the New York offering. The Interior Department’s Bureau of Ocean Energy Management, which is conducting the sale, will name participants after the auction ends, expected sometime Friday.

Read the full story at Bloomberg

 

Senators from 12 states seek offshore drilling exemptions like Florida’s

January 12, 2018 — WASHINGTON — Twenty-two Democratic U.S. senators from 12 states on Thursday joined the chorus of local representatives seeking exemptions from Interior Secretary Ryan Zinke’s newly proposed offshore drilling plan, after his surprise move on Tuesday to shield Florida.

Zinke surprised lawmakers, governors, and industry groups on Tuesday night by announcing that Florida would be removed from the Interior Department’s proposal to open up over 90 percent of federal waters to oil and gas leasing.

Zinke had met in Tallahasee, Florida’s capital, with Republican Governor Rick Scott, who told the Interior chief that drilling puts his state’s coastal tourism economy at risk. Scott is widely expected to challenge Democratic Senator Bill Nelson, who is up for re-election this year.

The White House dismissed suggestions that Florida’s exemption was a political favor to Scott. “I am not aware of any political favor that that would have been part of,” spokeswoman Sarah Sanders told reporters.

“Just like Florida, our states are unique with vibrant coastal economies,” wrote the 22 senators, who include Jack Reed of Rhode Island, Cory Booker of New Jersey and Kamala Harris of California. “Providing all of our states with the same exemption from dangerous offshore oil and gas drilling would ensure that vital industries from tourism to recreation to fishing are not needlessly placed in harm’s way,” they wrote.

Interior Department spokeswoman Heather Swift said Zinke intends to meet with every coastal governor affected by the agency’s proposed offshore drilling plan, a process that could take a year.

Democrats are not alone in pressuring Zinke to exempt their states from drilling. South Carolina’s Republican Governor Henry McMaster asked Zinke for an exemption, citing the value of his state’s coastal tourist economy.

Read the full story at Reuters