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New Analysis Shows Ban on Leasing and Development on Federal Lands and Waters Would Threaten U.S. Energy Security, American Jobs and Environmental Progress


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WASHINGTON, September 9, 2020 – The American Petroleum Institute (API) today released a new analysis warning of negative consequences from a proposed ban on federal leasing on natural gas and oil development on public lands and waters. The analysis projects that a ban would shift the U.S. to foreign energy sources, cost nearly one million American jobs, increase CO2 emissions and reduce revenue that funds education and key conservation programs.

“Banning federal leasing and development on federal lands and waters would derail decades of U.S. energy progress and return us to the days of relying on foreign energy sources hostile to American interests,” API President and CEO Mike Sommers said. “This is ultimately a choice between American-made energy and foreign energy, a choice between American jobs and foreign jobs. It’s clear a federal leasing ban should be off the table – there’s far too much at stake for American workers, local economies and our nation’s energy security.”

The analysis, prepared for API by OnLocation, used the same software the U.S. Energy Information Administration (EIA) uses to produce their Annual Energy Outlook. Key projections include:

  • America’s energy security would be at risk:
    • By 2030, offshore production for natural gas would decrease by 68 percent and for oil by 44 percent.
    • U.S. oil imports from foreign sources would increase by 2 million barrels a day.
    • Through 2030, the U.S. would spend $500 billion more on energy from foreign suppliers.
  • The U.S. economy would take a hit:
    • U.S. GDP would decline by a cumulative $700 billion through 2030.
    • Over $9 billion in government revenue, including funding for state education and conservation programs, would be at risk.
    • Nearly one million jobs would be lost by 2022, with top production-states suffering significant losses.
      • Texas would lose nearly 120,000 jobs.
      • New Mexico would lose over 62,000 jobs.
      • Wyoming would lose over 33,000 jobs.
  • Environmental progress would be stalled:
    • Coal use would increase by 15 percent by 2030.
    • CO2 emissions would increase by an average of 58 million metric tons (MMT) to represent a 5.5 percent increase in the power sector by 2030.

The study comes on the heels of a newly released poll by Morning Consult showing two-thirds of voters in key battleground states and other states would be more likely to vote for candidates who support access to natural gas and oil produced in the U.S. 93 percent of those registered voters find that it is important for the U.S. to produce enough energy to avoid being dependent on other countries.

Click here for more information on the analysis. Click here for more information on federal leasing.

API represents all segments of America’s oil and natural gas industry. Our more than 600 members produce, process and distribute most of the nation’s energy. The industry supports more than ten million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API was formed in 1919 as a standards-setting organization. In our first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.

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