By Randall Luthi, president of the National Ocean Industries Association (NOIA)
The president’s budget, while most ideological, is also most illogical in that it threatens the development of a broad range of energy sources necessary for continued economic growth and energy security.
The proposals aimed at the oil and natural gas industry will unfortunately also hit American consumers hard, weaken our economy, reduce direct funding to states, and threaten our status as the world’s leading producer of oil and natural gas. From the new energy taxes to the elimination of Gulf state revenue sharing for offshore energy production, this budget proposal is just the latest in a series of all-out regulatory assaults on American energy and U.S. consumers. These ‘keep it in the ground’ proposals do not encourage economic growth or bolster national energy security, but instead would put our country and American families and consumers on the hook for the radical policies of this Administration.
The president also proposes to fully fund the Land and Water Conservation Fund (LWCF), yet does nothing to encourage the exploration and development of offshore oil and gas, which is the source of funding for the LWCF. In addition, his administration has proposed an overly prescriptive well control rule that could increase risk offshore and lead to a de facto moratorium in the Gulf of Mexico, thereby reducing the very source of revenue for the LWCF.
The United States is the global leader in oil and gas production and yet the president has abandoned his balanced ‘all-of-the above’ energy philosophy and his administration is holding back our nation’s energy independence through regulations and policies that deter the very industry innovations that make our nation’s energy success possible. The President should broaden his vision by encouraging all forms of energy to further our nation’s position as the global energy leader, strengthen our economy, and keep energy affordable for American consumers.
NOIA is a national trade association representing the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. NOIA membership comprises about 300 companies engaged in business activities ranging from producing to drilling, engineering to marine and air transport, offshore construction to equipment manufacture and supply, telecommunications to finance and insurance, and renewable energy.
The views and opinions expressed in this blog are the author’s and not necessarily those of WorkBoat.