On the same day President Obama announced his offshore drilling plan, Shell announced that it "smashed the water depth record for an offshore oil drilling and production by over 50%" by starting oil production at its Perdido platform.

Perdido is the world's deepest offshore oil development project. Positioned in 8,000 feet of water on top of a mammoth floating steel cylinder, the platform is expected to produce about 100,000 barrels of oil equivalent a day, enough to fulfill the energy needs of 2.2 million households. Perdido is located about 200 south of Texas in the ultra-deep waters of the Gulf of Mexico. Chevron and BP are partners with Shell on the project.

Perdido will develop hydrocarbons from three fields called Great White, Silvertip and Tobago. Together they contain an estimated... more »

U.S. Steel Corp. is offering tangible proof that energy development can create jobs. This week the corporation announced it's considering expanding its Lorain, Ohio, steel tubing plant and adding a new steel coating line to a joint venture near Findlay, Ohio.

One of the primary reasons for the new investments is the company's proximity to the Marcellus Shale formation, where energy companies are using steel piping to drill for natural gas.

The Marcellus formation lies under a huge swath of eastern Ohio, Pennsylvania, New York and West Virginia as well as the western edge of Virginia. It is estimated to contain 489 trillion cubic feet of natural gas, making it one of the largest natural gas reserves in the world.

Based on a study conducted by Penn State, it's expected that development of th... more »

Today the Department of Transportation (DOT) and the Environmental Protection Agency (EPA) jointly issued the so-called "Car Rule." The rule orders vehicle manufacturers to raise efficiency standards to 34.1 miles per gallon for the combined industry-wide fleet for the 2016 model year.

Today's action marks the beginning of EPA's regulation of greenhouse gas emissions under the Clean Air Act. In response to the Car Rule, API issued the following statement:

"Improving vehicle efficiency makes sense. It's a vital part of energy conservation. However, EPA joining DOT in this rule sets the nation on the disastrous course of Clean Air Act regulation of stationary source greenhouse gas emissions. The states aren't prepared for this, the path of implementation is unclear, and the costs and delays... more »

Virginia yesterday became the first East Coast state to win approval for the development of offshore oil and natural gas resources.

Gov. Bob McDonnell, who has stated that he wants Virginia to become the "Energy Capital of the East Coast," applauded President Obama's announcement and renewed his call for federal legislation that would allow Virginia to share in the royalties from oil and natural production.

In a statement, the governor said:

"...to fully participate in the positive impact of offshore energy development, the Commonwealth must be included in all royalty and revenue sharing arrangements, in a manner equivalent to what the Gulf Coast states currently receive."

Last week, Rep. Bob Goodlatte (R-VA) introduced legislation with bipartisan support that would provide for offshore... more »