A new report, commissioned by the American Petroleum Institute and National Ocean Industries Association, warns of major production declines in the Gulf of Mexico - and a projected $1.5B loss of federal revenue per year - if the Biden administration continues to delay offshore oil and gas leasing. The Biden administration has not yet revealed steps for releasing a new plan. “It’s fairly clear that there’s not going to be a leasing program in place come July 1,” said Erik Milito, president of NOIA. The longer it goes ... the "more significant the impacts are going to be on the economy." DoI spokesperson Melissa Schwartz did not provide a timeline for the release of a new offshore leasing program. There are more than 11M acres of offshore federal waters already under lease, and more than three-quarters (75.58%) are unused and non-producing. Industry has become increasingly bitter over the Biden administration’s failure to conduct O&G lease sales while pushing the industry to drill more to drive down high global crude prices (Energywire, March 9). (Source: E&E News PM 03/29/21) Oil industry report warns of revenue bleed without new leasing - E&E News (eenews.net)
No comments:
Post a Comment