Reid Porter | 202.682.8114 | porterr@api.org

WASHINGTON, January 26, 2012—API's Upstream Director Erik Milito welcomed the Interior Department announcement of a June 2012 lease sale in the Central Gulf of Mexico, which would be the first lease sale in the Central Gulf of Mexico since March of 2010.  

"Working towards a thoughtful, comprehensive energy agenda is a laudable goal and smart policy," Milito said. "Holding another lease sale is necessary if we are to embrace a sound all-of–the-above strategy for developing American made energy and the industry looks forward to participating this summer. Unfortunately, overall, there is nothing new here."  

Milito noted that "contrary to the administration's announcement, this lease sale does not expand access to offshore oil and natural gas, but is part of an overall plan that has scaled back leasing opportunities from earlier proposals. This specific lease sale was included in the 2007-2012 OCS Leasing Program which became effective on July 1, 2007."  

He said that while "the administration is right to celebrate increased production figures, its policies are not yet supporting actions that will see it through." Federal Gulf of Mexico offshore oil production was down in 2011 from 2010, according to the Energy Information Administration (EIA). "The administration's plans for offshore leasing will keep more than 85 percent of the offshore areas off limits," he added. "A true step forward would be a plan that makes available areas offshore Virginia, throughout the Atlantic and Pacific, and the whole Eastern Gulf."  

The EIA projects that Gulf oil production will be down more than 20 percent in 2012 as compared to 2010. An active leasing program, along with permitting certainty, is essential for allowing the industry to develop all offshore and onshore resources in a timely matter and maintain domestic production.  

Increasing access to America's domestic resources will create jobs, raise government revenues, and produce even more of the energy we use right here at home. The oil and natural gas industry is ready to work with the president, Congress and regulatory agencies to choose the path that can lead to those positive outcomes and put the United States on the right energy and economic track. Learn more at http://vote4energy.org/  

API represents more than 490 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives..