GEST & LMOGA on Gulf of Mexico Oil & Gas Lease Sale 256
The Louisiana Mid-Continent Oil & Gas Association (LMOGA) and the Gulf Economic Survival Team (GEST) made the following remarks in response to the results of today’s Gulf of Mexico Oil & Gas Lease Sale 256.
“Today’s lease sale shows industry interest remains strong in the Gulf of Mexico despite the challenges of an uncertain economic environment, and this basin will continue to be an important player in providing energy for America,” said Tyler Gray, LMOGA President and General Counsel. “In order to ensure a sustainable offshore energy industry for Louisiana and a secure future for America, LMOGA encourages continued OCS lease sales going forward to continue producing the homegrown American energy that will be critical to our economic recovery. A strong Gulf of Mexico means a stronger Louisiana with increased offshore investment, an increase in revenues to the federal treasury, and critical funding towards Louisiana’s coastal restoration initiatives and our nation's National Parks and public lands.”
The offshore Gulf of Mexico accounts for over 15 percent of U.S. oil production. According to a recent analysis on the potential impacts of a proposed ban on federal leasing on natural gas and oil development on public lands and waters, local economies in the Gulf Coast region would be among the hardest hit areas with more than 200,000 job losses by 2022 and millions of dollars in reduced revenue.
"Offshore oil and natural gas activity has a tremendous impact on the livelihoods of thousands of Gulf Coast families and on the communities that depend on industry tax revenues for critical operating resources for local governments, and protection and resiliency of our coast.,” said Lori LeBlanc, GEST Executive Director. “Now, more than ever we should be investing in America’s offshore resources as opposed to cutting it off, ultimately increasing our dependence on less reliable foreign energy sources while threatening America’s energy independence.”
According to a recent report released by LMOGA, Louisiana’s oil and natural gas industry supported 249,800 jobs, contributed $73 billion to the state GDP, and accounted for nearly $4.5 billion of state and local tax revenue in 2019. In addition, through GOMESA, energy production on the Outer Continental Shelf generated over $155 million for coastal restoration and hurricane protection projects in 2019 alone.