2018 is almost like a Tale of Two Cities. While there has been a quicker recovery onshore, the upswing for offshore companies, and service providers, has been slower than many have hoped. However, 2018 may still write a new page for the offshore industry. Commodity prices are slowly ticking upwards and the Trump administration is making good on its promise to unleash the potential of American energy dominance.
The administration released the Draft Proposed Program for the 2019-2024 National OCS Offshore Oil & Gas Leasing Program. While nearly 94% of our nation’s offshore resources are off limits to development today, the Draft Proposed Program rejects this shortsighted paradigm, and instead proposes opening up 90% of the U.S. OCS to future exploration and development.
Relatedly, Interior is reviewing the permits for safe and modern seismic surveys denied during the final days of the Obama administration. Updated seismic data, particularly in the Atlantic where data is more than 30 years old, will allow stakeholders to have a fully informed debate. Furthermore, overly burdensome and ineffective rules are being re-examined, ensuring that the final rules reflect good policy and sound science, not political whims.
Congress is also strengthening American energy dominance. Two key bills passed the House Natural Resources Committee: the SEA Act, which updates the seismic permitting process; and the SECURE American Energy Act, which is an across-the-board modernization of offshore energy law.
Altogether, these are unprecedented, albeit long overdue, opportunities for the offshore energy industry. NOIA is committed to working with the administration and Congress to make the most of these opportunities and unleashing a generation of American energy.
To keep up with the fast-moving energy actions, I invite you to the NOIA 2018 Annual Meeting in Washington, D.C. Held April 11-13, 2018 at the Ritz-Carlton. The meeting features leading experts in policy, economics and national security and allows us to plan our course for this exciting year. As always, it will be a great time to network with fellow executives and long-time friends.
I look forward to seeing you there.
Return to NOIA 2018 Annual Meeting Page here.