The American Petroleum Institute (API) has voiced concerns over potential restrictions on offshore oil and natural gas activities.
API president and CEO Mike Sommers highlighted the importance of these resources for US energy security and the economy, in light of reports that the US Government may ban new activities in federal waters.
Sommers said: “American voters sent a clear message in support of domestic energy development, and yet the current administration is using its final days in office to cement a record of doing everything possible to restrict it.
“Congress and the incoming administration should fully leverage the nation’s vast offshore resources as a critical source of affordable energy, government revenue and stability around the world. We urge policymakers to use every tool at their disposal to reverse this politically motivated decision and restore a pro-American energy approach to federal leasing.”
US offshore oil and gas production contributes to the US energy sector, with 14% of the country’s crude oil output, or nearly two million barrels per day, coming from offshore sources.
The US EIA has projected that robust offshore development could generate more than $8bn in government revenue by 2040.
According to Sommers, these resources not only bolster energy security but are also among the least carbon-intensive barrels produced globally.
Sommers emphasised the need for Congress to reverse what he termed a “politically motivated decision”. He also called on the incoming administration to draft a new five-year offshore leasing programme, criticising the current programme as the weakest in history.
The API’s stance is that a revised programme could support the nation’s energy needs more effectively. API, representing a wide range of industry segments, plays a key role in supporting nearly 11 million jobs in the US. The organisation’s members are involved in producing, processing and distributing a major portion of the nation’s energy.
“API opposes new restrictions on offshore oil and gas development” was originally created and published by Offshore Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
