The Independent Petroleum Association of America is urging the U.S. Department of the Interior to continue offshore leasing for energy production.
The organization noted the Interior's proposal for the outer continental shelf oil and gas leasing program spanning 2023-28 includes the possibility of scheduling no offshore oil and natural gas lease sales for the next five years, according to an Oct. 6 news release. IPAA said this would be the first time this has happened since issuing programs were required in the early 1980s.
"While the Biden administration has intently focused on addressing climate concerns and expressed its intention to make oil and natural gas obsolete, independent analysis from the Energy Information Administration has shown that oil and natural gas will be necessary to meet America’s energy needs for the foreseeable future,” the IPAA said in the release. “When we accept that reality, the question becomes whether we want to strengthen our energy security and maintain our role as a global energy leader by producing that oil and natural gas here in America or become reliant on foreign nations."
According to the release, the IPAA noted continuing offshore exploration, development and production in the U.S. "will provide greater economic and energy security benefits to U.S. companies, workers and consumers. Additionally, Gulf of Mexico offshore production is recognized as some of the least carbon-intensive production in the world.
The IPAA notes offshore production accounted for 15% of U.S. oil production and 2% of gas production in 2021, according to an Oct. 11 Daily Energy Insider article. A study projects blocking lease sales until 2028 could result in a 33% decrease in offshore oil and gas production by 2036.
The IPAA represents independent oil and natural gas producers, and has done so for nearly 90 years, according to its website.
The 2023-2028 Proposed Program for the Outer Continental Shelf Oil and Gas Leasing Program includes a limit of 10 potential lease sales in the Gulf of Mexico and an option for one potential lease sale in the northern portion of the Cook Inlet of Alaska, according to the Bureau of Ocean Energy Management. There are no other lease sales proposed to the other Alaskan, Atlantic or Pacific areas during that five-year time frame.
Oil leasing programs are a rental agreement with no guarantee the leased area contains any oil or natural gas, according to Coastalreview.org. When a company acquires a lease, they make the decision whether or not to explore the area to see if it has any natural resources and produce them if the search discovers natural resources, such as gas or oil.
