Robust Offshore Leasing Program Crucial for Drilling Contractors
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Robust Offshore Leasing Program Crucial for Drilling Contractors
IADC Comments on Draft 2017-2022 Outer Continental Shelf Leasing Program
Houston, Texas (26 April 2016) – In response to today’s public meeting hosted by the Interior Department’s Bureau of Ocean Energy Management (BOEM) on the draft 2017-2022 Outer Continental Shelf Oil & Gas Leasing Proposed Program, IADC President Jason McFarland issued the following statement:
“A robust oil and gas leasing program in the U.S. Gulf of Mexico and off the coast of Alaska is critical to the future success of offshore drilling contractors. As the BOEM notes in their own proposal, in 2014, the US produced more than 49 quadrillion btus of oil and gas. Even with the rapid increase in unconventional onshore oil and gas production, the outer continental shelf will continue to be an important source of oil and gas for decades to come as it is expected that nearly 1.9 million barrels of oil will be produced per day offshore in 2016. The U.S. still uses nearly 20 million barrels of oil per day. That oil can either be obtained by import from overseas or from our own U.S. reserves, which has the added benefits of jobs and taxes and which contribute to the overall economy. Given these facts, it is absolutely crucial that the five-year program offer extensive opportunity for further exploration, development and production.”
“IADC members believe that the U.S. requires energy policies that facilitate energy exploration and production, as these activities fuel our economy. Case in point: the oil and gas industry supports more than $1 trillion in total value added to the economy, representing 7.3 percent of U.S. GDP. Additionally, outer continental shelf revenues, totaling more than $8 billion a year, and more than $220 billion since the first offshore well was drilled, is the source for the $900 million which funds projects authorized by Congress through the Land and Water Conservation Fund, creating and protecting national and local parks, areas around rivers and lakes, national forests, and national wildlife refuges.”
“Year after year this industry finds new ways to innovate with regard to technology and equipment, along with improved safety measures and procedures that protect both our workforce and the environment. We continue to encourage the Department of the Interior, and the Administration, to put forth policies that are supportive of this industry, which so greatly contributes to the overall U.S. economy.”
About IADC
Since 1940, the International Association of Drilling Contractors (IADC) has exclusively represented the worldwide oil and gas drilling industry. IADC’s mission is to catalyze improved performance for the drilling industry by enhancing operational integrity and championing better regulation to facilitate safer, cleaner and more efficient drilling operations worldwide. For more information, visit the IADC website at www.iadc.org.