The Trump administration has said it will be seeking to open the way for the Palm Beach region to attract foreign investment, which could make the region a prime target for foreign governments seeking to exploit Florida’s offshore energy and natural gas resources.
The U.S. Department of Energy has released a draft proposal for an energy and mineral leasing program, which is expected to be presented to the U.N. in a bid to attract investment from the region’s offshore oil and gas reserves.
The new policy would allow for the development of up to 200,000 acres of oil and natural-gas resources in the region, including more than 100,000 acre-feet of oil in the South Florida area.
The proposed lease would require the purchase of “mines” in an area that the Trump administration says is worth up to $1 billion.
The proposed lease, if approved by the U,S.
State Department, would be used to purchase “minerals” in the offshore South Florida basin, and would provide a tax incentive to drill in the area.
“This is not a new development area,” said Michael M. Gallagher, chairman of the Palm Beaches Petroleum Corporation, which owns about 9 percent of the area’s oil and geothermal reserves.
“The real challenge for the industry is going to be where is the best place to drill and drill in?”
Gallagher said.
“We are very concerned that foreign governments are going to see an opportunity here and be able to get their own way in terms of where the resources are.”
The announcement comes after U.K. Prime Minister Theresa May visited the region in January and has said she intends to encourage the development and use of offshore resources, including in the state of Florida.
The U. S. State and U. N. bodies have been urging the Trump Administration to open up the offshore area to investment and development.
The new policy could come as a surprise to investors and developers in the oil-rich South Florida, whose energy resources are among the most sought-after by foreign governments.
The offshore region has an estimated total potential of more than 4 trillion cubic feet of natural gas, which can be used in electricity generation, mining, and refining.
In addition to being an important oil and coal-producing area, the region has some of the most attractive real estate in the world for foreign investors.
The Trump Administration has long sought to promote the development potential of the region and its offshore resources.
“There is no question that this is an area with tremendous potential, and this administration is very supportive of this,” Gallagher said, adding that he would be pleased if the administration opened up the region to foreign investment.
“It’s going to have to be done in a fair and equitable way.”
