Offshore Energy Can Be a Unifying Force in State of the Union Address
For Immediate Release: Wednesday, March 6, 2024
NOIA Contact: jwilliams@nullnoia.org
Offshore Energy Can Be a Unifying Force in State of the Union Address
Washington, D.C. - As President Biden prepares to deliver his State of the Union address, the National Ocean Industries Association (NOIA) emphasizes the critical importance of offshore energy in shaping America's energy policy and addressing global energy needs.
NOIA President Erik Milito said, “The American offshore industry’s ongoing commitment to U.S. energy security and affordability comes at a time of significant and unnecessary policy uncertainty. Political decisions have seemingly commandeered the wheel of what should be a point of bipartisan agreement – robust American energy production is a bastion of national security, economic growth, and quality of life. We should not abandon smart energy policy in favor of partisan election politics.”
Against the backdrop of ongoing discussions on energy security and climate change, NOIA calls on President Biden to prioritize the following key areas in his State of the Union remarks:
- Energy Security and Stability: Offshore energy, particularly in the U.S. Gulf of Mexico, is essential for ensuring energy security and stability. Our policymakers, regardless of party, should recognize the strategic significance of our offshore resources in meeting domestic energy demands and reducing reliance on foreign sources. Gulf of Mexico energy production is nearing its pre-pandemic highs of nearly 2 million barrels per day, but this number can and should be higher.
- Emissions Reduction Leadership: America's offshore industry is a leader in lower carbon energy production, contributing significantly to global climate goals. The U.S. Gulf of Mexico has a carbon intensity 46% lower than the global average outside of the U.S. and Canada, outperforming adversarial nations like Russia, China, and Iran. Our industry is committed to responsible energy production that is driving further emissions reductions.
- Advancements in Offshore Wind and Carbon Sequestration: The rapid growth of offshore wind and advancements in carbon sequestration present additional opportunities for addressing climate change while building out new American jobs and investments. U.S. energy policy should recognize the vast potential of offshore renewable energy and carbon capture technologies.
- Recognition of Continuous Innovation & Environmental Stewardship: The American offshore is producing more energy with a smaller footprint and lower emissions. The historic consistency means more than 1 million barrels of oil per day produced since 1997, revenues to the government of more than $120 billion, with billions of dollars in funding for the Land and Water Conservation Fund, hundreds of thousands of good-paying jobs, and production of some of the lowest carbon intensity barrels of oil in the world. These are national benefits that impact every American.
As President Biden addresses the nation, NOIA urges him to recognize the opportunity for bipartisan energy solutions that recognize the crucial role our industry plays in shaping America’s energy future.
At the core of these solutions is the need for regular, and increased, oil and gas and wind lease opportunities. In our forward-thinking industry, securing new leases is vital for exploring and developing resources crucial to our nation. The next Gulf of Mexico lease sale is not until 2025, at the earliest, and the current federal offshore oil and gas leasing program only includes three sales over a five-year period, a historically unprecedented and needless action that will stifle American energy production.
Furthermore, with only three potential sales spread across five years, the Interior will be unable to comply with the Inflation Reduction Act and legally conduct offshore wind lease sales annually through 2029—a critical factor for supporting the growth of renewables along America’s coastlines.
Without annual opportunities for investment here in the U.S., the investment necessary to fuel the U.S. and global economies will simply shift to other parts of the world, including regions with potentially adversarial nations with lower environmental standards and higher emissions.
By leveraging offshore resources effectively and promoting responsible development, the United States can offer significant strides against climate change while still ensuring global access to reliable, affordable, and responsible energy production and boosting our national security.
About NOIA The National Ocean Industries Association (NOIA) represents and advances a dynamic and growing offshore energy industry, providing solutions that support communities and protect our workers, the public and our environment.
