The American Petroleum Institute (API) has released the following statement from President and CEO Mike Sommers on reports the Biden administration will move to ban new oil and natural gas activity across millions of acres of federal waters.
'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.'
According to the U.S. Energy Information Administration, U.S. offshore production accounts for 14% of total U.S. crude oil production, or nearly 2 million barrels of oil per day. Robust offshore oil and natural gas development could generate over $8 billion in additional government revenue by 2040.
America’s offshore resources are not only significant for our energy security, but also generate among the lowest carbon-intensive barrels produced anywhere in the world.
Reversing this politically-motivated decision should be a top priority for Congress. API has also urged the incoming administration to draft a new 5-year offshore leasing program, changing course from the weakest offshore program in history under the Biden administration.
Source: API
