A recent analysis by the American Petroleum Institute (API) has raised concerns about the potential consequences of proposed vessel restrictions in the U.S. Gulf of Mexico
According to the research conducted by the Energy Industry Analysis Panel (EIAP), which is cited in the press release issued by the API, these laws will have major repercussions for the production of energy, employment, and the economy.
The American Petroleum Institute (API), the EnerGeo Alliance, the Independent Petroleum Association of America (IPAA), and the National Ocean Industries Association (NOIA) have all provided the National Marine Fisheries Service (NMFS) with comments on behalf of their respective organizations. Concerns have been expressed regarding the planned limits due to what is seen to be a lack of scientific underpinning and an insufficient examination of the impact that the restrictions will have on the economy. In addition to this, they assert that the plan is unlawful because it poses a risk to endangered species.
According to the findings of the study, if the proposed restrictions are implemented, there is a possibility that energy production in the Gulf of Mexico might decrease by 24% by the year 2040. This would be the same as a daily loss of roughly 500,000 barrels of oil equivalent. Additionally, the revenue that the government receives from oil and natural gas production would drop by 22%, and employment in the industry might drop by 13%.
According to Holly Hopkins, vice president of upstream policy for API, "energy production in the U.S. Gulf of Mexico is critical for not only meeting current and future energy demand, but also for supporting conservation programs, driving state and local economies and helping the U.S. meet our emissions reduction goals. At a time when offshore production in nations around the world is needed, this proposal could increase reliance on foreign regimes for our energy and may compromise U.S. energy security."
API has requested that the National Marine Fisheries Service (NMFS) retract its proposed rule to designate critical habitat for Rice's whales in the Gulf of Mexico and review the plan in light of new scientific findings as well as the potential economic consequences it could have.
