05.19.15

Energy Committee Holds Hearing on Cassidy Offshore Energy Access Legislation

energy committee

WASHINGTON— The U.S. Senate Energy and Natural Resources Committee held a hearing on U.S. Senator Bill Cassidy’s legislation S. 1276, the Offshore Energy and Jobs Act of 2015, to expand offshore energy production by opening parts of the Outer Continental Shelf (OCS) that are currently restricted from oil and gas exploration and lift the Gulf of Mexico Energy Security Act (GOMESA) cap to provide Louisiana and fellow Gulf states with increased amounts of revenue to protect their coasts.

Watch his remarks HERE and see excerpts below.

Read more about the Offshore Energy and Jobs Act HERE.

“…We as a nation need greater access to fossil fuels to strengthen our energy security and independence.

“In fact, President Obama said last week, ‘we are going to be using fossil fuels, and when it can be done safely and appropriately, U.S. production of oil and natural gas is important.’ Hopefully we all agree with that…

… S.1276 brings greater equity in revenue sharing for the Gulf States that host offshore energy production.

“According to the Department of Interior, royalties from crude oil production in the offshore Gulf of Mexico for fiscal year 2014 was $4.6 billion dollars. In the same year, $3.4 million was shared with coastal states… Federal government gets 4.6 billion, we get 3.4 million. That’s about 0.07%...

“To put this in perspective, revenue shared from energy development on federal lands onshore, the state gets 50% of the royalties. Obviously it’s different for coastal.  

“For Louisiana, revenue sharing is not about only fairness, it is about our survival…

“Louisiana by our state constitution uses this revenue sharing to restore our coastline.

“Now that’s important for the rest of the nation…

“One fourth of our nation's energy supply depends on the support facilities in South Louisiana. Our working coast creates significant value benefiting the entire country…

“…This legislation helps create 230,000 working class jobs for Americans who currently are underemployed or unemployed, $70 billion in new revenue, $10 billion or so for Land Water Conservation Fund, while providing access to America’s oil and gas for Americans. What’s not to like?”