A consortium of energy trade groups, including the American Petroleum Institute and the Energy Workforce & Technology Council, together with 17 other influential bodies spanning the U.S. natural gas and oil industry, have united to send a clear message to the White House. Their plea centers around the urgent need to reinforce domestic energy security and calls for the swift implementation of a comprehensive federal offshore leasing program.
The collective appeal, articulated in a direct letter to President Biden, urges the administration to expedite the formation of an extensive offshore leasing program, which ideally should encompass the highest possible number of lease sales. The coalition advocates for the immediate launch of the necessary preparatory activities to ensure lease sales are operational by 2024.
Their plea surfaces in response to the controversial Stipulated Stay agreement, which placed perceived unfounded restrictions on an expansive area of nearly 11 million acres in the U.S. Gulf of Mexico. This development has left the offshore energy industry in a prolonged state of limbo.
The letter serves as a stark reminder to the administration that “The world needs American energy leadership, but that leadership requires supportive energy policies from Washington.” Without a comprehensive five-year leasing program featuring yearly lease sales, the risk that companies could venture offshore becomes palpable. It could lead the U.S. to miss out on valuable economic, energy, and environmental advantages.
The united front from the energy trade groups also stresses the strategic importance of offshore production in enhancing American energy security, boosting local economies along the Gulf Coast, and fostering conservation projects. Their letter adds weight to the Biden administration’s climate objectives by citing a recent study conducted by ICF. The study reveals that oil production in the U.S. Gulf of Mexico has a carbon footprint 46% smaller than the global average, making it a key player in the drive toward lower carbon emissions.
As stated in the letter, “The success of emerging offshore energy segments, which are prioritized by the Biden Administration, is closely intertwined with the long-term success of the domestic offshore oil and gas sector.” Many companies with a history rooted in the oil and gas industry are actively pioneering solutions, expansions, and venturing into new territories like offshore wind and carbon capture and storage (CCS). Yet the absence of a fresh offshore oil and gas leasing program breeds uncertainty, which could impede investment in these promising energy frontiers.
This united appeal from the energy sector echoes the pressing need for the Biden administration to draft a robust policy framework capable of seamlessly aligning domestic energy security with the ambition of achieving global climate objectives.
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