Gulf energy development depends on clear, predictable rule

WASHINGTON, September 30 – API upstream director Erik Milito said the Department of the Interior should ensure its interim final offshore rule, which was issued today, establishes an effective process to improve safety performance while providing the framework needed for companies to get approval from the government for exploration and development projects.  He said API would review the rule and provide analysis during the comment period.  He also called for ending the deepwater moratorium:

“The rule must serve the interests of improved safety and energy development.  There has to be a clear, practical, and certain process for project review that will protect the environment.  We cannot have an approval process that creates unpredictable delays that could place at risk the flow of domestic energy in our country.  Operators want regulations that provide certainty.  Unpredictable, extended delays in permit review and approval discourage investment in new projects, which hampers job creation, reduces revenue to the government, and restricts energy production.

“Getting a good offshore safety rule in place is critical to the nation’s energy future.  The Gulf and other parts of the nation’s offshore areas are vitally important to helping meet the nation’s future energy needs.  The rule will affect every offshore energy project for years to come.  It has to be right.

“We also still have the issue of the Gulf deepwater moratorium.  Every day the moratorium remains exacts an economic penalty on the people of the Gulf and on our nation.  The costs are already too high.  We continue to urge the government to end it as soon as possible.”

API represents more than 400 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports more than 9.2 million U.S. jobs, supports 7.5 percent of the U.S. economy, and, since 2000, has invested nearly $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives, while reducing the industry’s environmental footprint.

Updated: September 30, 2010