Sept 9 (Askume) – A leading U.S. oil and gas trade group warned on Monday that energy production in the Gulf of Mexico could shut down if the U.S. Commerce Department does not act quickly to release a new assessment on how to protect endangered species in the region.
Why is this important?
A court ruling by a federal judge last month rejected the National Marine Fisheries Service’s “biological opinion ,” which is legally required to conduct oil and gas exploration and drilling.
The judge gave NMFS, a division of the Commerce Department, until Dec. 20 to complete a new opinion.
The American Petroleum Institute said the delay could disrupt a vital source of U.S. oil and natural gas. The organization’s president, Mike Sommers, sent a letter to Commerce Secretary Gina Raimondo on Sept. 6 asking for help, API said.
From a numerical point of view
The Gulf of Mexico accounts for about 15% of domestic oil production, according to federal data.
The sector also supports about 412,000 jobs and generates $6.1 billion in federal revenue, API said.
Key Quotes
“Working together to resolve this issue is in the best interest of American consumers, the federal government, and oil and gas producers,” Summers wrote in a letter to Raimondo. “We look forward to working with the Department and its agencies to do our best to minimize distractions and find solutions.”
