News & Information » Press Releases

« Back to 2006 News Releases

Statement by Barry Russell, president of the Independent Petroleum Association of America (IPAA), as Congress considers Offshore Oil and Natural Gas Drilling Legislation.

IPAA represents the U.S. companies that drill 90 percent of the nation's oil and natural gas wells and hold 90 percent of the leases in the Gulf of Mexico.

"This legislation is important because it allows oil and natural gas exploration and production in previously off-limits areas of the central Gulf of Mexico, where some of the nation's largest oil and natural gas supplies are expected to be found. It will also provide a new source of revenue to the federal and state treasuries as new production results in new royalties paid by oil and natural gas companies operating in federal waters.

This bill is not the solution but a necessary first step to improving American energy security. The federal government still maintains its unnecessary moratoria on the East and West Coasts as well as the Eastern Gulf of Mexico. In fact, right now, there is language in the same bill that would restrict some onshore oil and natural gas exploration. This bill will increase access to new energy supplies in the Gulf of Mexico, yet restrict access to energy supplies in parts of Montana. American policymakers must stop this 'yes-you-can; no-you-can't' paradox.

"It's now time, as a nation, and as the new Congress convenes in January, to seriously look at frontier areas both onshore and offshore for safe energy development."

Offshore Oil and Natural Gas are a Vast American Energy Resource:

90 percent of the deep sea is off-limits, including 300 trillion cubic feet of natural gas and 50 billion barrels of crude oil. These resources could replace current levels of oil imports from the Persian Gulf for the next 59 years.

Congress has included moratoria language (making offshore exploration in new areas off-limits) in every Interior Appropriations bill since 1981.

Offshore development currently accounts for 25 percent of the country's natural gas (4.5 trillion cubic feet) and 30 percent of its oil (600 million barrels).

America's Independent Oil and Natural Gas Companies Dominate the Offshore. They:

• Accounted for 74 percent of deepwater discoveries in the offshore in 2005.
• Installed 89 percent of all offshore structures from 2001-2005.

For more information:

IPAA's testified before the U.S. Senate earlier this year on the legislation. That testimony can be found here: http://www.ipaa.org/news/press_releases/pr2006/2006-02-16.pdf.

###

IPAA is the national trade association representing oil and natural gas producers that drill 90 percent of the nation's oil and natural gas wells. These companies account for 68 percent of America's oil production and 82 percent of its natural gas production.