Robust Gulf Energy Production Has Power to Fuel National Economy
The Gulf Economic Survival Team (GEST) announced today a renewed effort to promote robust Gulf of Mexico energy production during the next four years of the Obama Administration.
“Over the past two years, the Gulf Economic Survival team has worked with operators and federal regulators to bring clarity to offshore drilling regulations and streamline the permitting process, and we have made great progress. However, permits only tell part of the story and new requirements continue to hinder production. Actual energy production in the Gulf of Mexico has significantly declined since 2010 and Americans are losing out on the jobs, tax revenue and energy security that this valuable resource can provide,” says GEST Executive Director Lori LeBlanc.
Providing nearly 30 percent of the U.S. crude oil production, the Gulf of Mexico is one of the largest sources of domestic oil production and offers our nation a tremendous opportunity for creating jobs, generating tax revenue and strengthening energy security, all at a time when our country needs it most. The U.S. Treasury collects $5-6 billion annually from energy production in the Gulf of Mexico (GOM) — making it one of the largest revenue streams for the federal government.
According to a 2009 Minerals Management Service report, 2011 GOM Crude Oil projection was estimated to be 596 million barrels. Actual 2011 GOM production was 422 million barrels. Difference between crude oil projections and actual production for the Gulf of Mexico in 2011 was down by 174 million barrels.
Oil and gas production in our country is lower than it has ever been on federal lands, both offshore and onshore. Production in the Gulf dropped to 422 million barrels in 2011, from 566 million barrels in 2010—a 140 million barrel decrease.
“We have a great opportunity to harness this power of the Gulf and help small businesses and middle class Americans throughout this great nation. The federal government has an obligation to commit the resources to re-energizing the Gulf of Mexico so we can create American jobs, stimulate the American economy, and produce substantial American energy. That is the message that GEST is taking to the White House and to Americans everywhere in the months ahead,” LeBlanc continues.