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API Statement on Court Decision Overturning Gulf of Mexico Lease Sale

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WASHINGTON, January 28, 2022 – The American Petroleum Institute (API) issued the following statement from Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola in response to a federal court decision invalidating a November 2021 offshore natural gas and oil lease sale in the Gulf of Mexico.

“This ruling is yet another example of the increasing policy and legal uncertainty that is jeopardizing the future of American energy leadership and leading to greater dependence on foreign energy sources that result in higher emissions. While we are disappointed by the Court’s ruling to vacate the only federal oil and gas lease sale offered last year, we urge the administration to implement policies that encourage continued leasing and development in the Gulf of Mexico, which is critical for meeting demand for affordable energy while generating billions in government revenue for conservation programs. At a time when demand is outpacing supply and energy costs are a top concern for Americans, we should be encouraging the development of our domestic energy resources, not sending signals that disincentivize U.S. production.”

An Obama-era report analyzing the effects of offshore leasing restrictions also found that U.S. greenhouse gas emissions will be little affected and could increase slightly if foreign imports increased in the absence of new U.S. offshore leasing and production. The report cites foreign energy sources would substitute for reduced American offshore supply, and that increased production and subsequent transport of foreign oil would lead to higher GHG emissions than energy produced here in the United States.

API represents all segments of America’s natural gas and oil industry, which supports more than 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Its nearly 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.


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