The American Petroleum Institute (API) has responded to the House Natural Resources Committee's proposed markup of the 2025 reconciliation bill. API President and CEO Mike Sommers commented on the proposal, stating, "Congress has a once-in-a-generation opportunity to help restore American energy leadership, and the House Natural Resources Committee has seized the moment. From lease sales to expedited permitting processes, the committee’s proposal creates an unprecedented pathway for developing our vast natural resources on federal lands and waters for generations to come. This is what American energy dominance looks like, and we urge the House to include these historic provisions in its final package."
The committee's proposal includes several provisions related to oil and natural gas development. For onshore oil and natural gas, it mandates quarterly lease sales, extends Application for Permit to Drill (APD) terms from two years to four years, and lowers royalty rates from 16.67% to 12.5%. It also restores noncompetitive leasing capabilities for parcels that receive no bids during auctions.
For offshore oil and natural gas, the proposal requires biannual leases in the Gulf of America over the next 15 years and six lease sales in Alaska Cook Inlet over ten years. It also establishes royalty sharing similar to GOMESA for Alaska and reduces offshore royalty rates from 18.75% to 12.5%.
API represents all segments of America's natural gas and oil industry, supporting nearly 11 million U.S. jobs. The organization was founded in 1919 as a standards-setting body and has developed over 800 standards aimed at enhancing safety, efficiency, and sustainability within the industry.
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