API Encourages Energy Development Through Bureau of Ocean Energy Management’s Offshore Program
“Rising U.S. production has dramatically increased our ability to protect consumers and the U.S. economy from energy shocks even within a low price environment,” said Erik Milito, API group director of upstream and industry operations. “Forward-looking energy policy recognizes long lead times needed for off shore energy development. The nation’s long-term energy security can only be ensured with a lasting commitment to expanding off shore oil and natural gas development to new areas.”
API comments that, in 2010, more than 30% of the oil and 11% of the natural gas produced in the U.S. was sourced in the Gulf of Mexico, citing U.S. Energy Information Administration (EIA) statistics. New projections by EIA estimate that Gulf of Mexico production will increase to record high levels in 2017. This and other data have informed BOEM’s analysis, recently released as part of the five-year program’s decision document and led the agency to state “there is no reason to exclude any of the proposed program areas in the proposed program options based purely on the price of oil and gas.”
“The five-year program is a critical part of our nation’s ability to secure affordable and reliable energy and create jobs for future generations of Americans,” Milito said. “Too many promising areas are already excluded from the proposal, taking off the table thousands of potential jobs and billions of dollars in potential government revenue. Knowing that oil and natural gas will be needed for many more decades to come, the Department of the Interior should promote robust development of U.S. offshore energy resources and recognize the Arctic and Gulf of Mexico as core components of the five-year program.”
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