API Chief Economist: California Leasing Policy Prevents Energy Development (USA)

API Chief Economist California Leasing Policy Prevents Energy Development

A recent decision by BLM to delay oil and natural gas leasing in California is an example of counterproductive government policy that will hurt the economy and weaken U.S. energy security, API Chief Economist John Felmy told reporters:

“America has a game changing opportunity to build a stronger economy and to secure a brighter energy future thanks to our vast supplies of newly accessible oil and natural gas. Full development of these resources could mean millions more jobs, stronger and more rapid economic growth, and trillions in added tax revenue, all while strengthening our position vis-à-vis the geopolitics of oil and natural gas markets. Unfortunately, current federal policy continues to prevent our nation from taking full advantage of this opportunity. The most recent example of this is BLM’s decision to postpone oil and natural gas lease sales in California until the fall, at the earliest.

“For the last several years, the federal government has shown virtually no interest in promoting new energy development. Today, eighty-seven percent of federal offshore areas remain off limits to oil and natural gas production. And where development is possible in federal areas, permitting and leasing is a slow and cumbersome process. According to the Department of the Interior, from 2008 to 2012, the number of drilling permits issued on federally controlled onshore land dropped over 36 percent while the actual number of wells drilled dropped 40 percent, which depresses production.

“As we look ahead we know that our nation has the workforce, the innovative and the entrepreneurial spirit to make the most of the energy renaissance created by the energy from the shale revolution. We also know that all too often, what’s lacking is political leadership and vision. We therefore urge lawmakers on all levels to work together to create a fact-based energy policy, so that our nation can take full advantage of its bright energy future and secure its place as a 21st century global energy leader.”

LNG World News Staff, May 13, 2013