Benefits of expanding offshore oil and natural gas development benefits highlighted during house hearing – daily energy insider gas x dosage chewable

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“Much of our nation’s offshore resources have not been evaluated in more than 30 years – inhibiting our regulators’ ability to make informed decisions,” said U.S. Rep. Paul Gosar (R-AZ), chairman of the House Natural Resources’ Subcommittee on Energy and Mineral Resources. “In order to adequately manage our energy inventory, meet future demand and ensure national security, it’s imperative we survey the seismic surveying permitting process in the Atlantic and Pacific Oceans.”

As of July, officials said, there were more than 3,000 active oil and gas leases on more than 16 million OCS acres. In 2016, OCS leases accounted for 72 percent of all oil production from federal lands, and 18 percent of total U.S. production of oil. During that same period, the natural gas produced in federal waters represented 27 percent of all natural gas produced on federal lands and 4 percent of total U.S. natural gas production.

“OCS activities are a key aspect of the Trump Administration’s America First Energy Agenda and Secretary (Ryan) Zinke’s goal of maintaining our nation’s energy dominance by advancing domestic energy production, generating revenue, and creating and sustaining jobs throughout our country,” Katherine MacGregor, acting Assistant Secretary of Land and Minerals Management at the Department of the Interior, said in prepared testimony.

OCS development is estimated to create more than 893,000 jobs nationally, $450 billion in new private sector investment, $550 billion in increased economic activity nationwide and more than $395 billion in increased government revenues, according to Consumer Energy Alliance Executive Vice President Michael Whatley.

MacGregor highlighted recent secretarial orders to reshape the 2017-2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program, also known as the Five Year Plan. She also discussed efforts to approve permits for new seismic surveys, and the review and overhaul of regulations from the Obama Administration to improve certainty and data transparency.

The leasing program, MacGregor said, is critical to future development because the life-cycle of an offshore well spans several years. “In many cases production today is the result of leases issued decades ago. By opening the planning process for a new five-year program, we’ll examine long-term opportunities to enhance responsible offshore energy development in the United States,” she added.

Whatley noted that with 94 percent of federal waters currently closed to leasing, the development of a new offshore energy leasing program is an opportunity to reassess and reverse existing restrictions in the Arctic and the Atlantic. “Expanding leasing into these areas will provide great benefits to the Atlantic region, will generate significant economic benefits for the entire United States and can be done safely,” he said.

A recent Quest Offshore Resources study determined Atlantic energy development could generate an additional 1.3 million barrels of oil equivalent per day. “Atlantic development could generate almost 280,000 jobs, nearly $200 billion in Gross Domestic Product and over $194 billion in capital investment,” Whatley said.

“As the committee continues to look at avenues for oil and gas development, I urge you to look to Louisiana and our long history of successfully producing America’s energy,” LeBlanc said. “We balance energy production with environmental stewardship. Since the first offshore well was drilled 70 years ago, the Gulf has produced 90 percent of domestic crude oil from OCS territories.”