HONOLULU: In an eleventh-hour push for environmental protection before he leaves office, President Barack Obama is placing an indefinite ban on oil drilling in huge swaths of the Arctic and Atlantic oceans.
The move helps put some finishing touches on Obama’s environmental legacy while also testing President-elect Donald Trump’s promise to unleash the nation’s untapped oil and natural gas reserves. Environmental groups were hoping the ban, despite relying on executive powers, would be difficult for a future president to reverse.
A permanent ban would mark the culmination of a slow reversal by Obama’s administration, which had been considering opening a broad area of the Atlantic Coast to drilling, but then backed away from that idea. Earlier this year, the administration removed potential Atlantic lease sales from its blueprint for offshore drilling. But that ban only applies to a five-year period starting in 2017, and could be more easily reversed by Trump in his own five-year blueprint.
In issuing a permanent ban, Obama appears to be trying to tie the hands of his successor. Trump has vowed a domestic energy revolution and is filling his Cabinet with nominees deeply opposed to Obama’s environmental and climate change actions.
Along the Atlantic seaboard, states have had mixed reactions to the possibility of drilling. In Florida, the administration of Gov. Rick Scott, a Trump supporter, has raised concerns about the possible effects to the state’s beaches and fishing industry, and residents in North Carolina’s Outer Banks protested a move toward ocean drilling. But officials in South Carolina and Virginia have expressed support for the economic benefit of new oil jobs.
Environmental groups were calling for a permanent ban even before the presidential election, but Trump’s victory has provided greater urgency for them and for businesses that rely on tourism and fishing. Trump has said he intends to use all available fuel reserves for energy self-sufficiency — and that it is time to open up offshore drilling.
Industry groups are confident that the ban will not stand and Trump can simply issue a new proclamation after taking office that would allow for oil and gas production in the Atlantic. They point to President George W. Bush, who in July 2008 lifted some executive bans on Outer Continental Shelf leasing and drilling.
“There is no such thing as a permanent ban,” said Erik Milito, a policy director at the American Petroleum Institute.
But Niel Lawrence, a senior attorney at the Natural Resources Defense Council, said the result of a Trump proclamation is not so clear-cut. He said the statute says a president can withdraw waters from the country’s leasing plans and “it does not say you can put back in.”
If Trump does issue an order reversing Obama’s proclamation, it would be up to environmental groups or others to challenge his actions in court. If he does not, then it would be up to Congress to intervene.
“My guess is that Congress has better things to do,” Lawrence said. “The industry is not clamoring to get into these places. Any return on investment is decades away.”
The Trump administration could also take a more gradual approach of changing the nation’s five-year leasing plan to put the waters back in play. That would buy groups on both sides time to make their case about the need or lack thereof to drill off the Atlantic coast.
Milito said keeping oil and gas production in the Atlantic as an option is important in the event US reserves elsewhere are depleted. The US should not have to rely on other countries for oil and gas supplies to ensure affordability and availability, he said.
“We have to look to the future so that we can maintain our status as an energy superpower and so that we can continue to rely on US oil and gas production to fulfill our economic needs,” Milito said.
Fourteen senators have signed a letter calling on Obama to ban offshore drilling permanently. Sen. Robert Menendez, D-N.J., disputed the notion that future administrations could undo Obama’s order without congressional approval.
“Declaring the Atlantic and the Arctic off-limits to Big Oil is a step the president can take immediately to show that we as a nation are committed to the future of our shore towns, our beaches and our environment,” Menendez said.
Obama bans oil drilling in Arctic, Atlantic oceans
Obama bans oil drilling in Arctic, Atlantic oceans
Stc Group issues US dollar-denominated sukuk with a total value of $2bn
RIYADH: Stc Group has issued US dollar-denominated sukuk with a total value of $2 billion across two tranches.
The group clarified that the issuance included the offering of $750 million in sukuk with a 5-year maturity at a yield of US Treasury plus 75 basis points, and an issuance of $1.250 billion with a 10-year maturity at a yield of UST plus 90 basis points, according to the Saudi Press Agency.
It noted that the total order book exceeded $8 billion across both tranches, with a coverage rate exceeding 4 times, and participation from over 300 investors in the subscription.
The issuance garnered strong demand from a broad and diverse base of international investors, reflecting solid confidence in the robustness and efficiency of stc Group’s business model and strategy.
This strategy is aimed at strengthening its digital leadership, seizing infrastructure opportunities, enabling massive projects, and contributing to the realization of Vision 2030 objectives, with a focus on achieving sustainable growth based on operational efficiency and maximizing shareholder value.
This issuance enhances stc Group’s access to international capital markets and solidifies investor confidence in the strength of its credit position.
It also supports its strategic role in accelerating the pace of digital transformation in the Kingdom and building a thriving digital economy.









