Biden administration cancels oil and gas lease sales in Alaska, Gulf of Mexico

The Interior Department will not move forward with planned oil and gas lease sales in the Gulf of Mexico and Alaska’s Cook Inlet, it announced Wednesday night. 

A spokesperson for the department confirmed the Cook Inlet lease sale would not proceed due to insufficient industry interest. Meanwhile, the planned sale of two leases, lease 259 and lease 261, in the Gulf of Mexico will not proceed due to contradictory court rulings on the leases, the spokesperson confirmed. 

Shortly after taking office, President Biden signed an executive order freezing all new oil and gas leasing on federal lands. Last summer, Judge James Cain, a Trump appointee, struck down the ruling, prompting the Biden administration to appeal.

Meanwhile, in January, the Washington, D.C., District Court invalidated another Gulf of Mexico lease sold by the federal government, lease 257. The administration is not appealing the January ruling, although it affects a separate lease from the ones named by the Interior spokesperson. 

The Alaska lease would have covered more than 1 million acres. The federal Bureau of Ocean Energy Management previously canceled lease sales in the area in 2006, 2008 and 2010, also citing lack of interest from industry at the time.