Louisiana’s oil and gas industry, already struggling from too little demand and too much supply, could see substantial decline if the federal government restricts new leasing or drilling permits in the Gulf of Mexico, according to a report from the National Ocean Industry Association.
The report comes after presumptive Democratic presidential nominee Joe Biden indicated he would restrict new drilling on federal lands and offshore, according to The Daily Advertiser. NOIA notes that Biden’s plan “to limit offshore oil and gas production would not only devastate Gulf Coast economies but would damage the U.S. as a whole.”
Louisiana has been hit hard in recent months by the industry’s decline amid an oil glut and dropping demand. The Louisiana Oil and Gas Association has warned drastic measures are needed to help oil producers across Louisiana and that, without aid, producers may be forced to lay off workers.
“While some elected officials and political candidates have promised to stop American energy production, including oil and gas production in the Gulf of Mexico, the reality is that these pledges would do untold harm to America,” NOIA President Erik Milito says.
The report details some of the potential impacts to coastal states under three scenarios related to leasing and drilling permits: current policies, no new leasing permits, or no new drilling permits. Read the full story.
