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 re... more »

The Department of the Interior (DOI) late yesterday sent out a list of new safety requirements to offshore drillers as pressure mounted against the drilling moratorium.

The requirements, issued as a Notice to Lessees (NTL), requires the CEOs of offshore companies to certify they are in compliance will all regulations. In addition, the operators must provide certification from a professional engineer of all well casing and cement design requirements as well as independent third-party verification that the blowout preventer will operate properly.

API supports the goal of making offshore energy production as safe and environmentally sensitive as possible, but it encouraged the administration to reconsider the deepwater drilling moratorium. "Independent analyses have indicated the six-month mo... more »

As the ranking Republican on the House Natural Resources Committee, Rep. Doc Hastings (R-WA) is in a position to closely observe and act on the administration's proposed energy policies.

Today in an op-ed published in The Washington Times, he provides an explanation for what he calls the administration's "mixed signals" on offshore energy production.

Hasting writes:

"Sen. Obama opposed it. Candidate Obama changed his mind when gas prices soared. President Obama stalled efforts to expand it, but then seemingly promoted it in this year's State of the Union address. Understandably, his ever-changing position has left Americans confused and frustrated."

Now Hastings believes he has seen the administration's true agenda. He says the president's 2011 budget proposal shows that government reve... more »

Tomorrow Interior Secretary Ken Salazar will defend his agency's proposed 2011 budget before the Senate Energy and Natural Resources Committee. Salazar calls it a "tough choices budget" requesting about $12 billion for the Interior Department (DOI), which is a slight decrease from 2010. (Environment & Energy Daily)

Committee Chairman Jeff Bingaman (D-N.M.) says the DOI budget does "a fine job of prioritizing the projects," and includes provisions including "boosting funding to acquire land for conservation, promoting renewable energy projects and expanding climate change research..."

But not everyone agrees with Sen. Bingaman's assessment.

In fact, the administration's budget could be a bitter pill for American citizens who are struggling to make ends meet. If approved, it would raise U.S... more »