Click here for linkOffshore oil and gas leases produced $10 billion in federal revenue only a few years ago. Today that number is zero, a consequence of the Obama administration’s reaction to last year’s Gulf of Mexico oil spill and the resulting moratorium on production in the region.
Sen. David Vitter (R-LA) says it’s a huge mistake for the federal government to forgo the money — and the jobs that result from the offshore leases. Writing for Roll Call today, Vitter outlines the extent of the problem:
Revenue can’t be generated from lease sales that don’t happen, and jobs can’t be created on leases that private industry can’t acquire. We’re in a severe fiscal crisis and we’re facing significant economic challenges related to job creation, yet the administration continues to neglect our offshore resources. …
Not surprisingly, the financial scope of these bad policies reaches far beyond Washington, D.C. Under the Gulf of Mexico Energy Security Act, energy-producing states along the Gulf Coast receive a share of revenues from certain lease sales. But if there are no lease sales, then there are no revenues. This puts further strain on states that are already struggling to make ends meet.
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