Sep 15, 2015 Independent Producers Continue to Play an Important Role in America’s Offshore Energy Production
WASHINGTON, D.C. – Following today’s Congressional field hearing in New Orleans, the Independent Petroleum Association of America (IPAA) reminded lawmakers to consider the important role independent producers play in U.S. offshore energy production.
“America’s independent producers account for 30 percent of U.S. offshore energy production, support more than 200,000 jobs, and, each year, send more than $10 billion in additional revenue to the United States Treasury through royalties and other payments,” said Barry Russell, IPAA president. “However, added layers of permitting and bureaucratic red tape are making it increasingly difficult for independent producers and small businesses to develop these abundant offshore resources. We must continue to recognize the important role America’s independent producers can play in increasing our energy security and fueling a long-term revitalization of our economy.”
IPAA urged the Bureau of Safety and Environmental Enforcement (BSEE) in July to address fundamental technical and economic flaws in its proposed well control rule, which would significantly impact operators’ ability to produce and would increase risks to people and the environment.
“Development of America’s oil and natural gas resources is safer than ever before thanks to the diligent and ongoing efforts of both the industry and the government. Working together, we have improved regulations, safety standards, and offshore equipment and operations. We are committed to protecting our workers, our environment, and ensuring America’s offshore energy development is the safest in the world,” said Russell.
Joseph Leimkuhler, IPAA member and Vice President of Drilling for LLOG Exploration Company, testified at the hearing and recommended several areas for improvement by federal regulators, including “achieving the appropriate balance of prescriptive versus performance based regulations” and the application of those regulations.
About the Independent Petroleum Association of America
The Independent Petroleum Association of America (IPAA) is the leading, national upstream trade association representing thousands of independent oil and natural gas producers and service companies across the United States. Independent producers develop 95 percent of the nation’s oil and natural gas wells. These companies account for 54 percent of America’s oil production, 85 percent of its natural gas production, and support over 2.1 million American jobs.