The Case for Expanding Offshore Leasing to Support Affordable and Reliable Energy
On behalf of the Competitive Enterprise Institute, I appreciate this opportunity to provide comments on the 11th National OCS Oil and Gas Leasing Program.
The proposed National Outer Continental Shelf (OCS) Program returns our nation to having a reasonable and prudent number of lease sales. This is in contrast to the previous program that allowed only three lease sales. Such a restrictive policy puts unnecessary constraints on production that can make it difficult for companies to make long-term investment and staffing decisions. Uncertainty in offshore leases contributes to uncertainty in American energy production more broadly.
The proposed program expands the available lease sales from three to 34 and covers three of the four OCS regions, and 21 of the 27 OCS planning areas. This is a substantial increase in lease availability that will bring it back in line with reasonable expectations. Expanding offshore lease availability is consistent with Congress’s directive under the Outer Continental Shelf Lands Act , that the OCS “is a vital national resource reserve held by the Federal Government for the public, which should be made available for expeditious and orderly development, subject to environmental safeguards, in a manner which is consistent with the maintenance of competition and other national needs.”
This additional capacity will help to keep gas prices affordable for Americans. It will also reduce the leverage that OPEC+ and other oil producing nations have over energy supply and prices. The US has the resources to reduce this leverage. Whether or not our nation utilizes those resources is a policy choice. This proposal makes the right choice.
American companies manage and develop our natural resources in a manner that creates economic benefits and maintains a reliable energy supply. Further, they manage and develop offshore resources under some of the most stringent environmental and safety standards in the world.
Ideally, the proposed program would go even further in unleashing American energy. The Bureau of Ocean Energy Management should consider expanding the number of lease sales, including in the Atlantic planning areas.
There are 269.13 million Outer Continental Shelf Acres in the Atlantic region between the North Atlantic, Mid-Atlantic, South Atlantic, and Straits of Florida planning areas.2 While the Atlantic has less oil than the other three regions, and is third in gas availability, these resources are still significant and valuable and could reasonably be explored to diversify the lease options available.
For our nation to flourish, we must have abundant and affordable energy. An essential piece in accomplishing this is to open up the Outer Continental Shelf to further development. This proposed plan helps to make that happen.
Sincerely,
Paige Lambermont Research Fellow
Competitive Enterprise Institute