As our nation cautiously reopens and our economy begins to recover from the COVID-19 pandemic, the thought of a summer road trip has never seemed sweeter. Just having the freedom to take to the road and explore our beautiful country has an exciting, renewed significance for many of us right now. Once we get the green light and before our journey begins, however, we'll need to fill up our gas tanks.
Louisiana's offshore oil and gas industry provides fuel that makes our trips possible, as well as hundreds of thousands of well-paying jobs that fuel our local, state and national economies. Now, the industry needs help to survive and continue to fuel our nation and economy long after this crisis has passed.
The COVID-19 pandemic brought the global economy to its knees this spring, shuttering businesses, suspending travel and cutting worldwide demand for oil and gas to the lowest levels in modern history at a time when production levels were surging. U.S. crude oil production was, in fact, at an all-time high in early 2020, breaking records and contributing to our nation's new role as a net oil exporter. Louisiana's local companies and infrastructure have supported the production of nearly 20 percent of America's oil supply, 45 percent of U.S. petroleum refining and 52 percent of our nation's natural gas processing.
Then, that historic peak seemed to evaporate overnight as the pandemic extended its reach, demand began to drop, and a price war between Saudi Arabia and Russia contributed to a glut in the oil supply. We watched oil prices plunge to less than $20 a barrel and analysts predict a 20-percent decline in global oil demand in 2020, still too much for a 10-million-barrel-a-day OPEC production cut to overcome. Global oil storage reached its capacity.
The impact on Wall Street has been devastating, but the impact on America's future domestic oil supply is even more alarming. This economic crisis truly threatens the survivability of our strong domestic offshore oil and gas industry, thousands of small businesses who service offshore production, and the hundreds of thousands of men and women whose jobs are linked to oil and gas production. We must save America's offshore oil and gas industry.
On April 2, LMOGA appealed to President Trump to implement measures to help domestic oil and gas producers and local businesses survive the crisis by putting them in a position to recover and continue fueling our nation and the world once demand and supply stabilize. Without emergency policy measures, producers may have no choice but to shut in wells, accelerate layoffs and cancel contracts totaling millions of dollars with local service companies. Without preemptive federal action, the economic domino effect will be long and brutal, and our future domestic energy supply will be at risk.
One of the measures promoted by LMOGA is the temporary reduction or suspension of royalty payments on federal offshore leases to ensure a robust energy industry remains viable during and after the current crisis. A viable industry is not only good for the economy and our energy supply, but for coastal restoration as well, because production generates federal funds for restoration projects. The U.S. Secretary of Interior has authority to reduce royalty rates for economic purposes, and LMOGA has strongly advocated that President Trump, Secretary of Interior David Bernhardt and Congress make this temporary cut to boost production and future royalty revenues.
LMOGA requested actions including a three-year extension on federal leases in the Gulf, extensions for decommissioning wells, and the protection of pipelines and other infrastructure if limits to storage capacity necessitate well shut-ins.
I am convinced that our global economy will rebound once the pandemic threat has diminished, and then demand for oil and gas will soar. We need to ensure our domestic offshore oil and gas industry survives to meet tomorrow's challenges and continues to fuel our gas tanks, the national treasury, and jobs for men and women everywhere for decades to come.
For more information about Louisiana's oil and gas industry and LMOGA's work to protect and grow the industry, visit http://www.lmoga.com or call (225) 387-3205.
Link:
Save America's offshore oil and gas industry - BIC Magazine
- BASF to Buy Stake in German Offshore Wind Farms From Vattenfall -- Update - MarketWatch - April 22nd, 2024 [April 22nd, 2024]
- Denmark Launches Massive Offshore Wind Auction | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- rsted and OEG Renewables Form Offshore Wind Pact in US | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- Vestas and Maersk team up for South Korean offshore wind - Recharge - April 22nd, 2024 [April 22nd, 2024]
- Denmark's offshore wind parks currently generate 2.7 gigawatts of electricity - The Mountaineer - April 22nd, 2024 [April 22nd, 2024]
- rsted Buys Sunrise Wind Stake from Eversource - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- 'More non-turbine challenges' | GE hits back in New York round 3 offshore wind demise - Recharge - April 22nd, 2024 [April 22nd, 2024]
- 'Heart-breaking': Refugees once detained offshore by Australia warn the UK government not to push through its ... - The Albany Herald - April 22nd, 2024 [April 22nd, 2024]
- Hearing scheduled this week on bill to advance offshore wind - delawarebusinessnow.com - April 22nd, 2024 [April 22nd, 2024]
- Aker BP begins production from Hanz field offshore Norway - Offshore Technology - April 22nd, 2024 [April 22nd, 2024]
- Denmark launches its biggest offshore wind farm tender - The Caledonian-Record - April 22nd, 2024 [April 22nd, 2024]
- Vestas and Maersk to Build Offshore Wind Hub in South Korea | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- U.S. Navy To Convert Oil Rigs Into Offshore Military Bases To Counter China In The Pacific - Marine Insight - April 22nd, 2024 [April 22nd, 2024]
- BASF seals deal to buy into gigascale Vattenfall offshore wind to power chemicals complex - Recharge - April 22nd, 2024 [April 22nd, 2024]
- First Moray West 14.7MW Offshore Wind Turbine Comes Up - Offshore Engineer - April 22nd, 2024 [April 22nd, 2024]
- NYSERDA concludes New York's third offshore wind solicitation without final awards - 4C Offshore - April 22nd, 2024 [April 22nd, 2024]
- Galp Energia says Namibia offshore field could contain 10B barrels of oil - Seeking Alpha - April 22nd, 2024 [April 22nd, 2024]
- Framework Agreement signed with rsted in the US - 4C Offshore - April 22nd, 2024 [April 22nd, 2024]
- A submerged concern: offshore wind cables - Martha's Vineyard Times - April 22nd, 2024 [April 22nd, 2024]
- Possible human smuggling operation thwarted offshore in South Florida - cw34.com - April 22nd, 2024 [April 22nd, 2024]
- Maersk sets sights on offshore wind logistics in South Korea - Splash247 - Splash 247 - April 22nd, 2024 [April 22nd, 2024]
- Brigantine, Ventnor respond to offshore wind suit dismissal - Press of Atlantic City - April 22nd, 2024 [April 22nd, 2024]
- Denmark launches 6GW offshore wind tender with an eye on production of green hydrogen and e-fuels - Hydrogen Insight - April 22nd, 2024 [April 22nd, 2024]
- Trump says he hates wind power at fundraiser with oil executives - The Washington Post - April 22nd, 2024 [April 22nd, 2024]
- Humboldt County Officials Headed to Massachusetts Next Week to Check Out Vineyard Offshore's Wind Farm - Lost Coast Outpost - April 22nd, 2024 [April 22nd, 2024]
- 3 More Offshore Wind Projects Bite the Dust - Heatmap - April 22nd, 2024 [April 22nd, 2024]
- Europe's First Commercial-Scale Floating Offshore Wind Farm Secures All Planning Approvals | Offshore Wind - Offshore WIND - April 22nd, 2024 [April 22nd, 2024]
- OEG Renewables lands US offshore wind contract with rsted - Energy Voice - April 22nd, 2024 [April 22nd, 2024]
- Vattenfall and BASF sign purchase agreement for 49 percent of Germany's Nordlicht offshore wind farms - Vattenfall - April 22nd, 2024 [April 22nd, 2024]
- House Republicans ask Gov. Moore to veto offshore wind financing bill - Ocean City Today - April 22nd, 2024 [April 22nd, 2024]
- Enterprise Products Partners Granted MARAD Port License For Biggest Offshore Oil Export Terminal In U.S. - Marine Insight - April 10th, 2024 [April 10th, 2024]
- RWE Wants to Expand Supply of Fiber Cables for Floating Offshore Wind - The Maritime Executive - April 10th, 2024 [April 10th, 2024]
- US unveils next steps in its 20242029 Gulf of Mexico oil & gas leasing program - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- Romania adopts offshore wind energy law to get first megawatts by 2032 - Balkan Green Energy News - April 10th, 2024 [April 10th, 2024]
- Baltic Sea nations turn to Nato and EU to protect offshore infrastructure from Russian threats - Recharge - April 10th, 2024 [April 10th, 2024]
- Canadian Pension Fund to Consolidate Its Offshore Wind Holdings into UK-Based Reventus Power | Offshore Wind - Offshore WIND - April 10th, 2024 [April 10th, 2024]
- Australia urged to ensure its gas strategy features LNG opportunities - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- Taiwan's offshore wind power moves forward. - 4C Offshore - April 10th, 2024 [April 10th, 2024]
- Siem Offshore lines up multi-year gig for 2016-built oil spill response vessel in Brazilian waters - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- Poland's Largest Offshore Wind Project Readies for 2025 Auction | Offshore Wind - Offshore WIND - April 10th, 2024 [April 10th, 2024]
- New assignment for Wood in Trinidad and Tobago - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- SalMar 'won't build offshore farms in Norway without ground rent tax' - FishFarmingExpert - April 10th, 2024 [April 10th, 2024]
- SLO County fishermen sue Coastal Commission, offshore wind companies. Weve got rights here - San Luis Obispo Tribune - April 10th, 2024 [April 10th, 2024]
- New floating offshore wind partnership committed to Celtic Sea - 4C Offshore - April 10th, 2024 [April 10th, 2024]
- Norwind Offshore's CSOV to Feature Seaonics Fully-Electric Crane - Offshore WIND - April 10th, 2024 [April 10th, 2024]
- Eversource's Offshore Wind Lessons Have Created A Buying Opportunity (NYSE:ES) - Seeking Alpha - April 10th, 2024 [April 10th, 2024]
- FERC approves collaboration between PJM, New Jersey to boost offshore wind - Daily Energy Insider - April 10th, 2024 [April 10th, 2024]
- April 10 Golden Knights vs Oilers NHL Offshore Betting Odds, Preview - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- Arsenal vs Aston Villa EPL Offshore Odds, Preview, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- O&Gs emissions reduction roadmap and the importance of refinery efficiency - Offshore Technology - April 10th, 2024 [April 10th, 2024]
- West Ham vs Fulham EPL Offshore Odds, Preview, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- Liverpool vs Crystal Palace EPL Offshore Odds, Preview, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- April 10 Astros vs Royals MLB Offshore Betting Odds, Preview - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- RS helps propel offshore wind farm initiative in education sector - The Manufacturer - April 10th, 2024 [April 10th, 2024]
- Bournemouth vs Man United EPL Offshore Odds, Preview, and Prediction - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- Grand National Offshore Odds, Preview, and Prediction (2024) - The Latest Sports Betting News - OffshoreSportsbooks.com - April 10th, 2024 [April 10th, 2024]
- Tyra, a State-of-the-Art Offshore Gas Hub in the North Sea - Total - April 10th, 2024 [April 10th, 2024]
- 50Hertz to start onshore works for Windanker offshore wind farm - Power Technology - April 10th, 2024 [April 10th, 2024]
- Fund manager Pelagic teams up with Borealis Maritime to expand offshore fleet - TradeWinds - April 10th, 2024 [April 10th, 2024]
- Another LNG carrier gets Silverstream's air lubrication tech at Seatrium - Offshore Energy - April 10th, 2024 [April 10th, 2024]
- VIDEO: EPS splashes USCG's first Heritage-class offshore patrol cutter - Naval Today - November 2nd, 2023 [November 2nd, 2023]
- N.J.s election focusing on abortion and offshore wind - WHYY - November 2nd, 2023 [November 2nd, 2023]
- Business Network for Offshore Wind changes name to Oceantic ... - WorkBoat - November 2nd, 2023 [November 2nd, 2023]
- Geotechnical Surveys Completed at Scottish 3.6 GW Floating ... - Offshore WIND - November 2nd, 2023 [November 2nd, 2023]
- Fitch downgrades Eversource outlook to 'negative' on uncertainty ... - Utility Dive - November 2nd, 2023 [November 2nd, 2023]
- Kongsberg & Solstad Offshore to Collaborate on Decarbonisation ... - The Maritime Executive - November 2nd, 2023 [November 2nd, 2023]
- Second BOEM in-person hearing on offshore wind generates ... - Ocean City Today - November 2nd, 2023 [November 2nd, 2023]
- NOV Earnings: Offshore Remains Central Performance Driver as ... - Morningstar - November 2nd, 2023 [November 2nd, 2023]
- Murphy eyes first oil in 2026 from offshore project in Southeast Asia - Offshore Energy - November 2nd, 2023 [November 2nd, 2023]
- CorPower Ocean's wave energy device weathers through two major ... - Offshore Energy - November 2nd, 2023 [November 2nd, 2023]
- Somerset offshore wind plant clears major hurdle - CommonWealth magazine - November 2nd, 2023 [November 2nd, 2023]
- In a 'world first,' autonomous giant drones are flying cargo to offshore ... - Electrek - November 2nd, 2023 [November 2nd, 2023]
- Port of VA Receives First Massive Offshore Wind Components - Chesapeake Bay Magazine - November 2nd, 2023 [November 2nd, 2023]
- HBA Future Energy to Build 532 MW Anma Offshore Substation - Offshore WIND - November 2nd, 2023 [November 2nd, 2023]
- PGE, rsted Gather Tier 1 Offshore Contractors for 1.5 GW Baltica 2 - Offshore WIND - November 2nd, 2023 [November 2nd, 2023]
- Philippine police unearth 'torture chamber' in sex den licensed as ... - The Straits Times - November 2nd, 2023 [November 2nd, 2023]
- CIP & Co Release Findings of Taranaki Offshore Wind Capability ... - Offshore WIND - November 2nd, 2023 [November 2nd, 2023]
- UK offshore wind stands up to Storm Ciaran - reNEWS - November 2nd, 2023 [November 2nd, 2023]
- Hatteras Offshore Open kicks off billfish series - The Coastland ... - The Coastland Times - May 18th, 2023 [May 18th, 2023]
- Anna Paulina Luna to feds: Study dangers of offshore wind turbines - Tampa Bay Times - May 18th, 2023 [May 18th, 2023]