- The Bureau of Land Management (BLM) had approved an environmental impact statement for a 1.5 million-acre project in Converse County, Wyoming, covering up to 5,000 new wells.
- However, nearly a decade of study had taken place, and the project was still stuck in court.
The recent overhaul of the U.S. Department of the Interior’s permitting system, announced by the agency, may change the oil and gas landscape in Wyoming. The new rules would significantly reduce the time needed for environmental reviews for drilling projects, from months to just 28 days.
| Change in Permitting Process | Original Process | New Process |
|---|---|---|
| Time for Environmental Reviews | Up to one year | Approximately 14 days |
| Time for Full Environmental Impact Statements | Up to one year | Roughly 28 days |
“The new permitting procedures will take a multi-year process down to just 28 days at most,” said the Department of the Interior in a statement. This is a significant improvement over the current process, which can take years. Response to the revised approach to environmental reviews for oil and gas drilling has been divided. On one hand, industry advocates like the Petroleum Association of Wyoming (PAW) have praised the administration’s efforts to evaluate the permitting process and expressed the desire for comprehensive reform.
“Clearly, change is needed,” said the PAW in a statement responding to the news. “Whether it takes legislative or regulatory action, we believe change is necessary to address the challenges we face in the industry and to ensure that America remains competitive in the global energy market.”
On the other hand, conservation groups have expressed concerns that the new policy ignores the National Environmental Protection Act (NEPA) and fails to engage the public in the decision-making process.
“This directive, based on an emergency that doesn’t exist, silences the public and guts NEPA’s core purpose — informed decision making,” said Tracy Stone-Manning, president of The Wilderness Society.
The Department of the Interior’s recent directive has drawn attention to the need for ongoing public engagement and transparency in the permitting process. The public comment period for the upcoming oil and gas lease sales is approaching, with 37 parcels covering 45,178 acres expected to be released for public review. The comment period ends May 15, and the leases are scheduled to be sold in September. Industry analysts are now waiting to see how the new rules will play out in practice, particularly in Wyoming. Some are uncertain about the impact of the increased production on the global market. “The BLM will use input from the public to help complete its review of each parcel,” said the BLM in a statement. Beyond industry advocates and environmental groups, business journalists and analysts are grappling with the implications of the revised permitting process for the oil and gas market. Crude oil prices are currently at $63.17 a barrel, and some producers are worried that the market may become oversupplied if the new rules allow for increased production. However, the exact impact of the new rules on the oil and gas market remains unclear, and it will depend on various factors such as demand and inflation. In a recent industry survey, the U.S. Energy Information Administration (EIA) predicted that oil prices would continue to dip over the next year, falling by about 1.5%. The same survey reported that oil prices needed to be around $65 per barrel for drilling to be profitable, and $85 per barrel for a substantial increase in drilling to occur.
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