The ruling was based on the Inflation Reduction Act.
Energy companies including Shell, BP, Chevron and ExxonMobil offered a combined $192 million for drilling rights on federal oil and gas reserves in the Gulf of Mexico.
“But the leases are now being issued pursuant to the Inflation Reduction Act, so the challenged agency action is no longer the basis for the issuance of the leases,” the ruling from the U.S. Appeals Court for the District of Columbia said. It also highlighted political pressures on the Biden administration, with Biden running for reelection and needing continued support from environmentalists and young voters. The oil and gas industry and Republicans, meanwhile, have accused the administration of not doing enough to enable domestic oil and gas production.
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