Industry Appeals Gulf of Mexico Court Ruling, Warns of Significant Consequences for American Energy Security
WASHINGTON, September 12, 2024 — The American Petroleum Institute (API), EnerGeo Alliance, the National Ocean Industries Association (NOIA), and Chevron U.S.A. Inc. today released the following joint statement after filing an appeal of the U.S. District Court for the District of Maryland’s decision to vacate the National Marine Fisheries Services’ (NMFS) Biological Opinion in the Gulf of Mexico. Under the ruling, the Biological Opinion for the U.S. Gulf of Mexico will lapse effective December 20, threatening to halt new and existing oil and natural gas production and activity in the region.
“American oil and natural gas production in the Gulf of Mexico is a driving force of energy security here in the U.S. and around the world, supports hundreds of thousands of jobs and generates billions for state and local revenue. If this ruling is left uncontested, a critical source of current and future U.S. energy supply could be in jeopardy at a time of persistent inflation and geopolitical instability. We intend to pursue all legal means to prevent the far-reaching consequences of this ruling for Gulf Coast economies and American families that depend on access to affordable, reliable energy.”
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By vacating the biological opinion without allowing enough time for NMFS to issue a revised opinion, this court decision threatens to significantly slow down or halt all permits for routine, daily operations. This leaves current and future energy production at risk and undermines worker safety and environmental protection efforts.
According to the U.S. Energy Information Administration, U.S. Gulf of Mexico production accounts for nearly 15% of total U.S. crude oil production, or nearly 2 million barrels of oil per day. If the Gulf of Mexico were a country, it would be one of the top twelve producing nations in the world.
A recently completed study confirms the economic importance of the oil and gas operations on the outer continental shelf in the Gulf of Mexico. In 2023 alone, the Gulf of Mexico oil and natural gas industry is estimated to have supported over 412,000 jobs, contributed over $34.3 billion to the U.S. gross domestic product and generated $6.1 billion in federal government revenue.
Revenue from offshore energy production, especially in the Gulf of Mexico, goes toward funding the Land and Water Conservation Fund and other initiatives focused on protecting green spaces, public parks and recreation areas, wildlife, and other community programs across all 50 states. From 1965 to 2019, the industry contributed nearly $41 billion to the program and provided more than 42,000 state grants for park restoration.
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API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability. To learn more about API and the value of oil and natural gas, please visit API.org.
Founded in 1971, the EnerGeo Alliance is a global trade association for the energy geoscience industry, the intersection where earth science and energy meet. The EnerGeo Alliance and its member companies span more than 50 countries, and together, unify to open the gateway to the safe discovery, development, and delivery of mainstay sources of energy, alternative energy and low-carbon energy solutions that meet our growing world’s needs.
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.
Chevron U.S.A. Inc. is a subsidiary of Chevron Corporation, one of the world’s leading integrated energy companies. It believes affordable, reliable, and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our oil and gas business, lower the carbon intensity of our operations and grow lower carbon businesses in renewable fuels, carbon capture and offsets, hydrogen and other emerging technologies. More information about Chevron is available at www.chevron.com