“This legislation is a win-win for Louisiana. It will incentivize job creation and investment in the state’s oil and gas industry, as well as provide much needed funds for coastal protection,” Gifford Briggs, Acting-President of the Louisiana Oil & Gas Association said.
Energy and Natural Resources Chairman Lisa Murkowski (R-AK), Sen. Tim Scott (R-SC), Sen. Dan Sullivan (R-AK), Sen. Thom Tillis (R-NC) and Sen. David Vitter (R-LA) co-sponsored this bill in the Senate.
American Energy and Conservation Act of 2016
For years, energy activities in coastal Gulf States and adjacent offshore waters have produced billions of barrels of oil and trillions of cubic feet of natural gas for American energy consumers. In 2010, for example, over 30 percent of the oil and 11 percent of the natural gas produced in the US was produced in the Gulf of Mexico. Gulf States support offshore energy development for the rest of the country and provide the support for, and pay for the infrastructure needed to bring this energy to market.
With all development, there are increased costs associated with supporting increased traffic. This includes additional use of local and state resources, as well as transportation corridors such as pipelines, vessels and trucks, in order to get the energy delivered to consumers all across the US.
Addressing the historic costs of hosting a capital-intensive industry while ensuring resilient domestic energy supply can only be attained through equitable revenue sharing. This bill is anticipated to provide billions for coastal restoration efforts.
- Read the fact sheet here.
- Read the legislative overview here.
- Read the legislation here.