Gulf of Mexico Energy is Better for Our Economy and Our Environment

Op-Ed By: LMOGA President Tommy Faucheux

The offshore energy industry in the Gulf of Mexico sets the standard for cleaner production worldwide.

In a recent report, the National Ocean Industries Association (NOIA) found that oil production in the Gulf of Mexico produces 46% less carbon emissions than the global average. As leaders in the global energy evolution, we should be promoting policies that increase cleaner, affordable production here at home – not creating obstacles.

For 85 years, Louisiana’s offshore industry in the Gulf of Mexico has played a significant role in transforming America’s energy sector. Since the first well was constructed a mile offshore near Creole, Louisiana, the Gulf has given rise to major innovations and new technologies that have revolutionized our industry.

Today, the Gulf of Mexico’s offshore production remains a fundamental economic and energy resource for Louisiana and our nation. In 2020 alone, the Gulf contributed $31.1 billion to the U.S. economy, supported 367,000 jobs and produced 1.9 million barrels of oil a day. It is the primary offshore source of oil and gas for the country, generating about 97% of all domestic production.

Meanwhile, over the last three years, global turmoil and a global pandemic have completely transformed our approach and understanding of both energy dependance and national security. As a result, it’s clearer than ever that Americans need access to reliable, affordable, ‘homegrown’ energy that we can depend on no matter the circumstances across the world. Reaching into our strategic reserves cannot and should not be our solution to diminishing fuel supplies – especially when we have the natural resources and infrastructure to produce our own energy onshore and offshore, at a lower cost to our pocketbooks and the environment.

While the world is increasingly demanding cleaner, lower-carbon fuel, Louisiana and the Gulf of Mexico are best positioned to take advantage of market demands. With a highly skilled workforce, stringent regulations and innovative technologies, our companies should be at the forefront of the new energy evolution.

However, when elected officials create de facto moratoriums on lease sales in the Gulf or increase taxes and impose unnecessary regulatory burdens on our industry, it forces companies to look elsewhere for job-creating investments.

In fact, NOIA predicts that by 2040, if there is no new permitting in the Gulf, production will decrease to 332 thousand barrels of oil a day, a loss of 287,000 jobs and $22.8 billion less in economic impact. This would be a devastating blow to America’s energy supply and to the hundreds of thousands of families in South Louisiana that depend on a thriving oil and natural gas industry.

In order for us to have clean, affordable and abundant oil and natural gas, elected officials and government leaders need to unleash Louisiana’s energy potential. Otherwise, we’re risking our livelihoods and putting our future in international hands.