Energy Tomorrow Blog
Posted July 10, 2018
Offshore energy development works for the states – all of them.
The U.S. Interior Department recently announced that $61.6 million in revenues from offshore oil and natural gas will be distributed to all 50 states, U.S. territories and the District of Columbia – via grants that support state conservation and outdoor recreation projects.Ponder that: You don’t have to be a coastal state; you don’t have to be a producing state. Under the Gulf of Mexico Energy Security Act (GOMESA), everyone benefits from offshore natural gas and oil revenues that are earmarked for Land and Water Conservation Fund (LWCF) grants.
Posted May 16, 2018
For some time we’ve stressed that offshore oil and natural gas production is compatible with a variety of other ocean uses such as fishing and tourism – and most significantly, with the U.S. military’s need for open-water areas to conduct training exercises, advanced weapons testing and the like. Industry has a long track record of developing offshore energy in a manner that successfully coexists with the military’s needs in the Gulf of Mexico and other areas.
The same would be true in the Eastern Gulf of Mexico if a moratorium on offshore development there, in place since 2006, is allowed to expire in 2022 – creating access to key new areas for safe exploration and development of strategically important oil and natural gas. A new analysis by the Defense Department agrees.
Posted May 2, 2018
The most recent federal Gulf of Mexico oil and natural gas lease sale was described in some media reports as “disappointing,” “modest” and “tepid.” But there’s another, more positive way to look at it.
First, every offshore lease sale the federal government holds is welcome by industry, because each represents new opportunity for the market to work as it should – with companies making investment decisions based on the potential for significant natural gas and oil production.
A more important point underscored with the Gulf sale is one we’ve been making for some time – that the federal government needs to make available new offshore areas for study, research, exploration and development.
Posted March 6, 2018
Since Interior Secretary Ryan Zinke proposed opening most of the nation’s outer continental shelf to offshore leasing, we keep getting asked whether offshore energy development can coexist with tourism and fishing?
The answer is absolutely yes. And there’s a pretty good case study backing that up: The Gulf of Mexico.
While surging onshore oil and natural gas production have grabbed headlines the past few years, oil and natural gas production in the Gulf continues to play a critical role in meeting the nation’s energy needs.
Posted August 18, 2017
Here’s the case for expanded opportunity within a new offshore oil and natural gas leasing program that federal officials are assembling: Safely developing American oil and natural gas on the outer continental shelf (OCS) is vital to the United States’ long-term energy and national security; we need new access to offshore areas, such as the Eastern Gulf of Mexico. Including them in the federal five-year plan will allow surveying to determine the location and size of oil and gas reserves; safe oil and natural gas production on the OCS could significantly boost local, regional and state economies; and advanced technologies, strong industry standards and a robust regulatory system work effectively together to protect workers, communities and the environment.
Posted May 1, 2017
Last week’s presidential executive order embracing increased access to America’s offshore natural gas and oil reserves jumpstarts an important conversation about the needed, positive steps to make the United States’ energy future more secure. With 94 percent of federal offshore acreage currently off limits to development, there are more questions about that future than if safe offshore access was the rule instead of the exception to the rule. The president’s order begins the process of changing the offshore equation. API Upstream Group Director Erik Milito talked about the offshore executive order and the need to build on it during a conference call with reporters.
Posted April 28, 2017
Posted October 19, 2016
Posted May 25, 2016
Heidelberg and other offshore production facilities are integral to U.S. energy security. The U.S. Energy Information Administration (EIA) estimates Gulf production will average 1.63 million barrels of oil per day (mb/d) this year and reach 1.91 mb/d by December next year, accounting for 18 percent and 21 percent of total U.S. crude oil production in 2016 and 2017, respectively.
Output from Heidelberg and other platforms reflects decisions made years ago – to buy leases and to invest in exploration and development. That’s why it’s critically important for robust planning now, starting with the government’s 2017-2022 offshore oil and natural gas leasing program that’s currently being put together by federal officials.
Posted May 11, 2016
Some points for the Senate Energy and Natural Resources Committee to consider when it meets next week to review the Obama administration’s proposed 2017-2022 program for offshore oil and natural gas leasing.
First, offshore oil and natural gas production historically has played a major role in overall U.S. energy output. In 2010 more than 30 percent of U.S. oil and 11 percent of U.S. natural gas was produced in the Gulf of Mexico. So, while it’s great that the U.S. Energy Information Administration (EIA) estimates that Gulf production will increase to record high levels in 2017, every American must recognize that reaching record Gulf output next year would result because of leasing decisions made a decade or more ago.
In that context, let’s be clear: The federal offshore leasing program must reflect energy leadership and vision, and it must be focused on fostering opportunity. It must not reduce America’s offshore energy potential by keeping key offshore areas off the table for development.