“I am going to lift the restrictions on American energy, and allow this wealth to pour into our communities.” – Donald J. Trump
AMERICA’S ENERGY RESOURCES ARE LOCKED AWAY: Under the previous administrations, America’s offshore resources were blocked from responsible development.
Ninety-four percent of the U.S. Outer Continental Shelf’s (OCS’s) 1.7 billion acres are either off-limits to or not considered for oil and gas exploration and development under the current (2017-2022) leasing program.
- Days before leaving office on January 17, 2017, the Obama Administration approved the latest schedule for oil and gas lease sales that would last for five years until 2022.
- There are hundreds of millions of acres of federal waters in the Arctic Ocean, Atlantic Ocean, and Gulf of Mexico.
- The OCS is expected to contain 90 billion barrels of undiscovered technically recoverable oil and 327 trillion cubic feet of undiscovered technically recoverable natural gas.
- In FY 2016, Federal revenues from the OCS were $2.8 billion; the actual sales value of the oil and gas resources was $26 billion and generated $55 billion in total spending in the economy. These expenditures supported approximately 315,000 American jobs.
Alaska has seen a number of nearby OCS areas closed off to development and now has the second highest unemployment in the country, as its resource sectors, particularly oil and gas, have lost thousands of jobs.
- At least one energy company has announced it would withdraw from all but one of its OCS leases in Alaska because of uncertain federal regulations.
- Revenue to the Federal Government from leasing the OCS has fallen by over 80 percent, from $18 billion in 2008 to $2.8 billion in 2016. On average, OCS energy development generates $10-12 billion annually.
FREEING AMERICA’S ENERGY POTENTIAL: President Donald J. Trump is removing restrictions on the OCS that locked away America’s energy potential.
- President Trump signed an Executive Order today to direct the Secretary of Interior and Secretary of Commerce to take action on OCS restrictions.
The Secretary of the Interior will review areas closed off by the current five-year plan for sale of oil and gas leases in the OCS, without disrupting scheduled lease sales. These planning areas include:
- Western and Central Gulf of Mexico
- Chukchi Sea
- Beaufort Sea
- Cook Inlet
- Mid and South Atlantic
The Secretary of the Interior will review four rules and regulations put in place last year that could reduce exploration and development in the OCS. These include:
- Notice to Lessees and Operators of Federal Oil and Gas, and Sulfur Leases, and Holders of Pipeline Right-of-Way and Right-of-Use and Easement Grants in the Outer Continental Shelf
- Oil and Gas and Sulfur Operations in the Outer Continental Shelf-Blowout Preventer Systems and Well Control
- Air Quality Control, Reporting, and Compliance
- Oil and Gas and Sulfur Operations on the Outer Continental Shelf—Requirements for Exploratory Drilling on the Arctic Outer Continental Shelf
- The Secretary of Commerce is directed to refrain from designating or expanding National Marine Sanctuaries unless the proposal includes “a timely, full accounting from the Department of the Interior of any energy or mineral resource potential”—including offshore energy from wind, oil, natural gas, and other sources—within the designated area and the potential impact the proposed designation or expansion will have on the development of those resources.
- The Secretary of Commerce and the Secretary of the Interior will work together to develop a streamlined permitting approach for privately funded seismic data research and collection to expeditiously determine the offshore resource potential of the United States.
FOLLOWING THROUGH ON HIS PROMISE TO THE AMERICAN PEOPLE: President Trump is following through on the energy development policies he promised to the American people.
- Then-Candidate Trump:
“We need an America-First energy plan. This means opening Federal lands for oil and gas production; opening offshore areas; and revoking policies that are imposing unnecessary restrictions on innovative new exploration technologies.”
Source: White House Press