Claiming that restrictions would both harm energy security and economic growth, the American Petroleum Institute (API) submitted a new analysis of the situation to the National Marine Fisheries Service (NMFS).
At the heart of the issue is the agency’s proposal to designate Rice’s whale critical habitat in the Gulf. The AP and co-commenters – including EnerGeo Alliance, Independent Petroleum Association of America (IPAA) and the National Ocean Industries Association (NOIA) – alI insisted that the industry supports environmental stewardship and habitat conservation, but framed the wildlife protection effort as lacking in good science or economic considerations.
“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,” Holly Hopkins, API vice president of upstream policy, said. “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.”
The Gulf’s energy production efforts result in nearly 15 percent of U.S. crude oil production. Vessel restrictions would, in the organization’s analysis, cause average oil and natural gas production to decline to a little under 2 million barrels of oil equivalent per day – a 24 percent reduction from 2023-2040 projected levels. Loss of investment in the Gulf would follow, by around 14 percent by 2040.That would also hit jobs, leading to a 13 percent decline in average oil and natural gas industry employment.
Speaking to the government itself, the report also pointed to a potential loss in government revenue from the change. Funds taken from those operations could fall 22 percent, the API stated, falling to $5.7 billion annually.
