API President and CEO Jack Gerard told Congress today that raising the Oil Spill Liability Trust Fund cap from $75 million to $10 billion "would place about 145,000 jobs at risk."
In prepared remarks, Jack explained congressional legislation to raise the cap could force all but the very largest oil companies out of the Gulf of Mexico, adding that costs for offshore operations could increase by 25 percent.
"The impacts would be devastating...just a 10 percent increase in development costs could render seven current discoveries sub-economic, reducing production, jobs, and putting $7.6 billion in future government revenue at risk."
Jack also said API is developing recommendations for Congress and the administration on how to effectively address liability limits and financial responsibility requirements for offshore exploration activities.
His full statement for the House Transportation and Infrastructure Committee is available here.
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