Support for US Offshore Expansion
API Director of Upstream & Industry Operations, Erik Milito, recently said that there is broad and bipartisan support from the U.S. public and policymakers to expand access to offshore oil and natural gas development. Increases in the amount of US oil and natural gas production are contributing to views that the U.S. can improve economic conditions by becoming a more energy self-sufficient nation.
“The US has a chance to be a dominant player in global energy markets and guarantee our energy security for decades ahead,” said Milito. “Achieving this feat must include tapping into oil and natural gas resources off our coasts in the Atlantic, Pacific, the Arctic and eastern Gulf of Mexico.”
Milito went on to say that cooperation from President Obama, Congress, states, and the oil and gas industry to expand access to offshore energy production will boost the nation’s economy, benefitting American families, and assuring long-term energy security for the US.
During OTC last month, state officials and governors representing eight coastal states held a discussion about improving federal and state cooperation regarding offshore energy development. Texas governor, Rick Perry, mentioned that the US has established itself as a major fixture within the industry.
“The future of the world is intertwined around the industry in the Western Hemisphere, with a focus on the US,” Perry said. “Governors have begun partnering with universities to find new methods of tapping undiscovered oil and natural gas resources offshore.”
According to the EIA, US production of natural gas increased by 10 Bcf per day between 2010-2012. The agency projects that domestic oil production will increase from more than 5 MMbo/d in 2008, to over 8.5 MMbo/d by the end of 2014. Total estimated US oil resources have increased from under 150 billion barrels in 2003 to more than 220 billion barrels today.
Milito said that these rapid increases open doors to create new jobs and stimulate the economy, presenting new opportunities for the US.
“According to a study by Wood Mackenzie, policies that promote domestic development of oil and natural gas resources could create more than 1 million new jobs and generate US $127 billion in government revenue in under a decade,” Milito said. “These jobs are a great potential for communities not traditionally associated with oil and natural gas production.”