API Highlights Importance of Federal Leasing and Development at DOI Forum

WASHINGTON, March 25, 2021 – The American Petroleum today participated in the U.S. Interior Department’s public forum on the federal oil and gas program. On a panel alongside other energy industry stakeholders, API Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola highlighted the importance of continued federal leasing and development for America’s energy security and environmental progress.

“The Biden administration inherits a strong American energy outlook, and ensuring access to federal leasing and energy development is imperative to continuing low household energy costs, record greenhouse gas emissions reductions and reduced reliance on foreign energy,” API SVP of Policy, Economics and Regulatory Affairs Frank Macchiarola said. “Oil and natural gas production from federal lands and waters provide affordable and reliable energy, and revenues derived from this leasing program support important priorities across the country, including education, infrastructure and conservation. We encourage DOI to undertake this review expeditiously and fully reinstate federal oil and gas leasing. Our industry looks forward to continuing our long-standing collaboration with DOI to help meet the dual challenge of reducing emissions while providing affordable and reliable energy for the American people.”

As outlined in a new climate action framework released by API earlier today, the natural gas and oil industry supports the ambitions of the Paris Agreement and is committed to supporting both industry and government actions to address the risks of climate change and build on the progress the nation has made in driving emissions to generational lows. A long-term ban or significant curtailment of federal oil and natural gas leasing, however, would be counterproductive to this shared goal.

Should a long-term ban or significant curtailment of federal leasing and development occur, coal use would increase by 15 percent and CO2 emissions in the power sector would increase 5.5 percent by 2030, according to a recent analysis prepared for API by OnLocation. Additionally, an Obama-era BOEM report analyzing the effects of offshore leasing restrictions found that U.S. greenhouse gas emissions will be little affected and could, in fact, increase slightly in the absence of new offshore leasing. The report cites foreign energy sources would substitute for reduced American offshore supply, and that increased production and subsequent transport of foreign oil would lead to higher GHG emissions than energy produced here in the United States.

API's recent analysis also showed a long-term ban of leasing and development on federal lands and waters would cause U.S. energy supply to shift to foreign sources, cost nearly one million American jobs, and reduce revenue that funds education and key conservation programs.

API represents all segments of America’s natural gas and oil industry, which supports more than ten million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our 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 700 standards to enhance operational and environmental safety, efficiency and sustainability.

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API’s Frank Macchiarola's Testimony at DOI Forum

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