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OIL AND GAS
Drill more, U.S. energy groups say
by Daniel J. Graeber
Washington (UPI) Mar 31, 2015


disclaimer: image is for illustration purposes only

With the federal government vetting more drilling offshore Alaska, industry groups called on the federal government to open more areas up for exploration.

"Safe and responsible energy development in the Atlantic will strengthen local economies with new job opportunities and private investment," Eric Milito, director of upstream operations for the American Petroleum Institute, said in a statement. "The [White House] should carefully consider America's long-term energy needs because these decisions will impact the country for a long time."

The U.S. Interior Department in February released a draft proposal for 2017-22 for access to federal waters. Ten leases are planned for the Gulf of Mexico, three for offshore Alaska and one, a debut, for waters in the Atlantic.

U.S. lawmakers said the Alaska drilling proposal was out of step with the White House commitment to energy development, while leaders along the East Coast said more Atlantic drilling would strike a blow to the regional tourism industry and environment.

API along with eight peer organizations said Monday too many promising areas, including offshore Alaska, are currently excluded, or off the table completely, for energy explorers. The federal government said it's vetting thousands of comments on whether to open arctic waters near Alaska to drillers.

His comments came as the U.S. Energy Information Administration, the statistical arm of the Energy Department, said domestic oil production growth has accelerated at a record pace, but is expected to slow down in the near future. If EIA forecasts are accurate, however, domestic oil production next year will be the highest it's been since the 1970s.

The draft five-year lease proposal had a 60-day comment period that ended Monday.


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