The American Petroleum Institute (API) sent a letter to President Joe Biden on Aug. 1 urging the president to finalize a federal offshore leasing program.

The API joined 17 other trade groups in the energy sector in writing the letter, which states that recent restrictions on energy leasing in the Gulf of Mexico have caused uncertainty within the industry, according to a press release.

Since the last leasing program expired in June 2022, the letter argues that it is vital to complete the offshore leasing program and any associated renewals that are required, to ensure leasing agreements can be completed for the upcoming year, the release stated.

Failing to advance the offshore leasing program soon could have dire consequences including negatively impacting investment in offshore energy production, a serious issue given a prediction by the Energy Information Administration, which states the United States will likely obtain over 60% of its energy from natural gas and oil in 2050, the letter stated.

“The success of emerging offshore energy segments, which are prioritized by the Biden administration, is closely intertwined with the long-term success of the domestic offshore oil and gas sector,” the letter stated. “Many companies operating in offshore energy, with roots in the oil and gas industry, are actively engaged in finding solutions, expanding, and building new energy segments like offshore wind and carbon capture and storage. However, the lack of a new offshore oil and gas leasing program introduces uncertainty that will inevitably hinder companies' ability to invest in these promising energy avenues.” 

Offshore drilling also offers numerous benefits, according to the release, including a 46% lower “carbon intensity” when drilling in the Gulf of Mexico compared to drilling in other locations, the release stated.

The API represents the oil and gas industry and consists of nearly 600 members, according to the API website.