API Release New EIAP Analysis: Potential Lapse in 5-Year Leasing Program Threatens American Energy Security
Energy and Industrial Advisory Partners (EIAP) is pleased to announce that today, The American Petroleum Institute (API) released a new analysis prepared by EIAP outlining the potential economic consequences of new vessel restrictions on American oil and gas workers in the U.S. Gulf of Mexico. The study, conducted by EIAP, finds that recently proposed restrictions on oil and natural gas vessels operating in the Gulf of Mexico would have a major impact on jobs, industry investment, government revenue and oil and natural gas production in the region, leading to a nearly one-quarter decline – which is more than 500,000 barrels of oil equivalent per day – in energy production in the Gulf of Mexico by 2040 even as demand continues to rise.
The analysis was submitted to the National Marine Fisheries Service (NMFS) alongside joint comments from API, EnerGeo Alliance, Independent Petroleum Association of America (IPAA) and the National Ocean Industries Association (NOIA) in response to the agency’s proposal to designate Rice’s whale critical habitat in the Gulf of Mexico. In the comments, the associations highlight the industry’s commitment to environmental stewardship and habitat conservation in the areas in which they operate but argued that the proposal is not supported by the best available science, lacks a comprehensive evaluation of known economic costs and fails to comply with the Endangered Species Act.
“Energy production in the U.S. Gulf of Mexico is critical for not only meeting current and future energy demand, but also for supporting conservation programs, driving state and local economies and helping the U.S. meet our emissions reduction goals. At a time when offshore production in nations around the world is needed, this proposal could increase reliance on foreign regimes for our energy and may compromise U.S. energy security,” said API Vice President of Upstream Policy Holly Hopkins.