Court decision averts shutdown of Gulf of Mexico

A federal court granted the National Marine Fisheries Service (NMFS) more time to complete a new biological opinion for the US Gulf of Mexico and avoid significant consequences for American energy security.

Earlier this year, the US District Court for the District of Maryland vacated the NMFS 2020 Biological Opinion for Gulf of Mexico Oil and Gas activities (BiOp) effective 20 December. By vacating the BiOp without allowing enough time for NMFS to issue a new one, the court decision had threatened to shut down new and existing oil and natural gas operations in the US Gulf of Mexico.

Energy production in the US Gulf of Mexico is critical for not only meeting current and future energy demand, but also for supporting conservation programs, driving state and local economies and helping the U.S. meet our emissions reduction goals. In 2024, 14 percent of total US crude oil production and 2 percent of natural gas production is projected to come from the Gulf of Mexico.

National Ocean Industries Association President Erik Milito said, “We are pleased with the court’s decision to grant the requested relief, allowing the federal government additional time to issue a new Gulf of Mexico Biological Opinion. This ruling is crucial for maintaining our energy security, affordability, and national security, all of which depend on the uninterrupted supply of oil and gas from the Gulf of Mexico.

“The Gulf of Mexico is a powerhouse in the global energy landscape. If it were a country, it would rank among the top twelve oil producers worldwide. This region supports nearly 435,000 jobs, produces approximately two million barrels of oil daily, and funds essential conservation and coastal resilience programs. Its role as a vital and well-established energy hub is indispensable to the U.S. economy and national security.”

API Senior Vice President and General Counsel Ryan Meyers said, “We welcome the court’s pragmatic decision to allow NMFS more time to complete a new biological opinion for oil and natural gas operations in the US Gulf of Mexico. Today’s ruling provides only temporary relief and work still must be done to avoid disruptions to the backbone of our nation’s energy supply. We stand ready to work with NMFS and offer our industry’s expertise to complete a new biological opinion that balances environmental protection and the world’s growing need for affordable, reliable energy.”