| You’ve likely seen the flurry of news over the past few weeks regarding federal policy actions that could impact our industry. Let’s take a moment to talk about what we know, how it impacts us, and where we as a Chevron community stand.
What’s the issue?
Recently, two executive actions were issued that are directly relevant to energy development on federal lands:
- Secretarial Order 3395: Temporarily suspends the Department of the Interior (DOI) Bureau’s and Offices’ authority to take certain actions for 60 days and moves decision making on permits and other approvals from the regional level to federal headquarters. Actions covered under this authority suspension include, but are not limited to leases, amendment to a lease, affirmative extension of a lease, contract, or other agreement, or permit to drill.
- Executive Order (Sec 208): Paused new leasing on federal land for an indefinite amount of time to allow the government to complete a comprehensive review of existing leasing and permitting practices and to account for climate and other environmental impacts.
How does it impact Chevron?
While it is still early and more clarity on the proposals will be provided in the coming months, there is no indication of a total shutdown of oil and gas exploration and production. In fact, we expect to see development on existing federal leases continue.
Chevron North America Exploration and Production (CNAEP) and the affected business units are reviewing both the short and long-term potential implications of these actions. Additionally, Chevron and our industry trade groups are actively engaging policymakers and regulators.
In the Gulf of Mexico, our business plans are based on the current lease portfolio. Ensuring timely approval and regulatory certainty associated with routine permitting will remain essential. Operations in the Gulf of Mexico region are continuing on existing leases, and thus far permits and plans are being approved at both the Regional level and DOI Headquarters. Due to Executive Order 208, the March Gulf of Mexico Lease Sale 257 has been delayed without a new date scheduled. Nevertheless, Chevron maintains a robust and competitive portfolio of exploration prospects.
In our Permian Basin, San Joaquin Valley, and Rocky Mountain areas of operations, federal leases comprise a smaller but still important part of our total acreage position. Across America, regulatory certainty is a critical component of responsible oil and gas development that benefits the entire country.
How can employees help?
It’s important to remember that the world will always need energy and Chevron will continue to deliver it in an ever-cleaner and environmentally responsible way. We’re in the early stages of advocacy, but the Chevron Advocacy Network (CAN) will need the power of our collective voices.
If you’re not already a member, we encourage you to join the Chevron Advocacy Network, with more than 5,500 supporters engaged on this issue and others facing both Chevron and the energy industry. Your support will help make us a stronger company – ensuring we CAN win in any environment.
For those who are already members, thank you for your continued support of Chevron and the Chevron Advocacy network. Please stay tuned for future opportunities to advocate for continued energy development and production. |
