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Global oil lobby leader stumps in Louisiana amid fight to stop offshore ban | Business – New Orleans, Louisiana

New Orleans, Louisiana 2021-05-06 05:00:00 –

Mike Summers, CEO of the American Petroleum Institute, recently took a whirlwind tour of Louisiana, meeting with member companies and politicians fighting to shake the Biden administration to soften a sudden policy on fossil fuels. did.

Summers were able to sample a lot of local crayfish, tour a large liquefied natural gas export terminal, and see wetlands supported by oil and gas money. So far.

“There is a saying in Washington that nothing is more permanent than a temporary program,” Somers said.

While it does not affect a company’s ability to do business on private land, promoting environmental stewardship could hinder the industry over the next few decades, he said. Members of the API include the extraction and refining side of petrochemical pipelines such as ExxonMobil, Shell, Chevron and BP.

The long-term impact on the Gulf of Mexico oil and gas sector is unknown. All offshore oil and gas exploration is in federal waters and requires auctioned leases and royalties in exchange for mining public natural resources.

It can take years after a multinational giant works on an existing project, and if work and money are depleted, the drilling ban can eventually catch up.

“Fossil fuels are not the enemy. Greenhouse gas emissions are the enemy,” Somers said.

Fossil fuel lobbyists claimed that the coronavirus pandemic marked a “peak” of oil demand when workers were at home and attended zoom meetings for months instead of traveling.

The International Energy Agency estimated that global demand before the pandemic would be 100 billion barrels of oil daily in 2019.

“The worst time of the pandemic, last April, the world was still consuming 81 billion barrels of oil every day. It basically closed the world economy and used 80% of what it used to do. . Pandemic. ” “And we are now approaching that 100 billion barrels back.”

Global oil demand peaks before the coronavirus pandemic pushes the economy to shut down Expected to occur in the late 2030s According to major research and rating agencies S & P Global.

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About a year later, S & P Global Platts Analytics predicts that weak oil demand during a pandemic was not significant enough to actually change that forecast. Although long-term demand is “permanently changing” due to behavioral changes, the outlook is not expected to change significantly without significantly changing how the economy operates on oil. By the end of this year, about 75% of global oil demand is expected to recover.

Similarly, S & P Global predicted that average Annual oil demand growth should drop by more than 50% Because peak oil will be generated by 2025.

Summers was dissatisfied with the notion that businesses in the oil and gas industry were heavily subsidized. “This is a subsidizing industry,” he said. “The annual return of oil and gas income and taxes to US taxpayers goes far beyond what federal tax law considers to be fossil fuel subsidies.”

If the federal ban becomes permanent, industry lobbyists claim it is at stake.

By 2022, lobbyists argue that Louisiana could endanger the employment of 48,000 people associated with a federal ban that appears to include related workers.

As of March, the number of workers in the mining and logging sectors, including the oil and gas services business, decreased from 34,800 in the previous year to 28,600.

One caveat is that some construction and manufacturing jobs are closely related to the oil and gas sector and may not be explicitly included in the available employment data.

Still, oil and gas money has long funded projects in the environment and communities of Louisiana, even before the influx of offshore income.

Summers visited Rockefeller State Wildlife Sanctuary and Game Sanctuary It is located in the Cameron Parish, just south of Lake Charles. The Rockefeller Foundation leverages royalties, rentals, and leases from oil and gas exploration and development, along with other minerals on the land of Vermilion and Cameron Diocese to support state parks. I will.

“One of the things they revealed to me was that without the oil and gas industry partnership, we wouldn’t have the money needed to continue to protect waterfowl and this incredible ecosystem.” He said. ..

Global oil lobby leader stumps in Louisiana amid fight to stop offshore ban | Business Source link Global oil lobby leader stumps in Louisiana amid fight to stop offshore ban | Business

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