API launches coalition to expand US offshore activity

June 18, 2018
The American Petroleum Institute has launched a bipartisan coalition of more than 100 business and government leaders across the southeastern US states that will advocate expanding offshore US oil and gas activity onto the Mid-Atlantic Outer Continental Shelf and into the eastern Gulf of Mexico.

The American Petroleum Institute has launched a bipartisan coalition of more than 100 business and government leaders across the southeastern US states that will advocate expanding offshore US oil and gas activity onto the Mid-Atlantic Outer Continental Shelf and into the eastern Gulf of Mexico. Explore Offshore will host events and engage and educate local communities on safe and responsible access to US resources and the related positive economic and energy benefits to America, officials said on June 6.

“This is a much-needed, commonsense step for America’s energy future. Energy security is national security, and domestic energy production is a key contributor to a healthy national economy,” one of the group’s co-chairmen, Former Secretary of the Navy and US Sen. James H. Webb (D-Va.), told reporters during a teleconference. “Oil and gas are the key drivers of the world’s economies. We remain vulnerable in an expanding global economy marked by ever-growing energy needs.”

The coalition’s other co-chairman, former US Veterans Affairs Sec. R. James Nicholson, said, “Domestic energy sources are critical to reliable and affordable energy for US consumers, as well as an important source of energy for our military operations and ensuring that we don’t continue to rely on foreign adversaries for our energy. Offshore oil and gas development in the US also provides important, higher-paying job opportunities for our veterans across the country.”

Coalition members from Virginia, North Carolina, South Carolina, Georgia, and Florida also participated. Several said they will work to dispel false concerns opposition groups have raised in their communities.

“As we talk about myths and rumors, it’s important when we talk about increasing the economic base of communities in North Carolina, particularly in the eastern part of the state where some haven’t done that well, we explain that oil and gas activity will take place 100-120 miles offshore where people onshore won’t be able to see it,” said former Fayetteville Mayor Nat Robertson (R).

“The potential benefits of developing Virginia’s offshore oil and gas resources could be a game-changer for communities and citizens across the commonwealth,” said Winsome E. Sears, a former House of Delegates member (R-Norfolk). “I’ve heard that in Virginia, there are going to be bills put forward to defend our coast. I believe it’s important to defend our nation. As a former Marine, I know that both [the National Aeronautics and Space Administration] and the US Navy need to continue being able to have access to enough energy to help keep our nation free.”

Her observation came a day after US Rep. A. James McEachin (D-Va.) announced at the National Marine Sanctuary Foundation’s annual conference in Washington that he will introduce a bill, with Rep. Walter C. Jones (R-NC) as cosponsor, that would prevent the US Department of Interior from issuing oil and gas leases on the Mid-Atlantic OCS.

Other nations move ahead

“Our national policies have failed to adjust to significantly improved exploration and safety measures. The last time a lease sale was held on the Atlantic OCS was in 1984—when cell phones hadn’t even been invented,” Webb said. “Other nations aren’t delaying offshore oil and gas exploration but are going ahead without interfering with their tourism and commercial fishing. As a former assistant defense secretary and Navy secretary, I’m confident these operations can occur without interfering with military activities.”

Many offshore oil and gas jobs don’t require an advanced college degree to get a $100,000/year starting salary, Webb said.

This representsa great opportunity in North Carolina, Robertson said. “The average salary of $116,000/year is significantly greater than our state’s average salary of $48,000/year,” he noted. “I think we all support expanding our energy portfolio to include more renewable sources, but right now we need oil and gas to keep supplies affordable and reliable for our citizens.”

Webb said, “One thing that personally concerns me, especially considering all the safety and environmental improvements which have taken place, is where future offshore development should take place. Along the southern rim of the Gulf of Mexico, leases have been issued and drilling will be taking place. I think we should be amenable at more offshore activity domestically.”

API Upstream Operations Director Erik Milito, who also participated in the teleconference, said the US has about 14 million acres under lease now in the gulf, while Mexico has about 30 million acres.

The US industry has made it a priority to expand activity into the eastern gulf, where there’s so much infrastructure nearby, Milito noted. “We’ve hit kind of a lull there,” he said. “The Atlantic is another area where there have been successes farther north. The offshore oil and gas industry wants to go out and take a fresh look.”