The offshore energy industry in the Gulf of Mexico (GoM) sets the standard for cleaner production worldwide. In a recent report, the National Ocean Industries Association (NOIA) found that oil production in the GoM produces 46% fewer carbon emissions than the global average.
As leaders in the global energy evolution, we should promote policies that increase cleaner, affordable production here at home — not create obstacles.
For 85 years, Louisiana’s offshore industry in the GoM has played a significant role in transforming America’s energy sector. Ever since the first well was built a mile out from Creole, Louisiana, the Gulf has been a hotbed for ground-breaking advancements and new technologies that have revolutionized our industry.
Gulf of Mexico energy is better for our economy and environment
Today, the GoM’s offshore production remains a fundamental economic and energy resource for Louisiana and our nation. In 2020 alone, the GoM contributed $31.1 billion to the U.S. economy, supported 367,000 jobs and produced 1.9 million b/d. It is the primary offshore source of O&G for the country, generating about 97% of all domestic production.
Meanwhile, over the last three years, turmoil and a global pandemic have completely transformed our approach and understanding of both energy dependence and national security. It has become more evident than ever that Americans require access to trustworthy and reasonably priced energy that originates from within the country, and can be relied upon under any circumstances, regardless of global conditions. Reaching into our strategic reserves cannot and should not be our solution to diminishing fuel supplies — especially when we have the natural resources and infrastructure to produce our energy onshore and offshore at a lower cost to our pocketbooks and the environment.
Today, the GoM’s offshore production remains a fundamental economic and energy resource for Louisiana and our nation.
While the world is increasingly demanding cleaner, lower-carbon fuel, Louisiana and the GoM are best positioned to take advantage of market demands. With a highly skilled workforce, stringent regulations and innovative technologies, our companies should be at the forefront of the new energy evolution.
However, when elected officials create de facto moratoriums on lease sales in the GoM or increase taxes and impose unnecessary regulatory burdens on our industry, companies are forced to look elsewhere for job-creating investments.
According to NOIA’s projections, if new permitting in the GoM does not occur, the daily production of oil is expected to decrease to 332,000 barrels by 2040. This would result in a loss of 287,000 jobs and a decrease of $22.8 billion in economic impact. If this were to happen, it would greatly impact America’s energy supply and the country’s families who depend on a thriving O&G industry.
For us to have clean, affordable and abundant oil and natural gas, elected officials and government leaders need to unleash Louisiana’s energy potential. Otherwise, we’re risking our livelihoods and putting our future in international hands.
For more information, visit lmoga.com or call (255) 387-3205.
