(Editor's note: This Op-Ed from API President and CEO Jack Gerard was published in the Houston Chronicle, August 19, 2010.)

After taking a series of potshots at the American Petroleum Institute in his Sunday column ("Big Oil has it backward," Page D1), Loren Steffy closes with: "We need to proceed cautiously with new drilling and move quickly to draft new regulations that are broad and flexible enough to raise drilling standards without stifling a vital energy source."

We couldn't have said it better, which makes us wonder why he felt the need to excoriate API and its members. His portrait of our industry after the Deepwater Horizon incident ignores the oil and gas industry's quick and public recognition that improvements in offshore operations were necessary. He overlooks the industry's i... more »

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 »

The offshore oil and natural gas industry is in a holding pattern of sorts today, waiting for the Minerals Management Service (MMS) to issue Notices to Lessees (NTL) that will provide information about offshore energy development. Announcements from MMS offices last week caused concern when at least two drilling permits were rescinded in shallow water after the president announced a six-month moratorium on deepwater drilling.

According to information received by API, MMS could issue an NTL today specifying changes to equipment requirements in shallow water followed by additional NTLs on other aspects of offshore energy development. In the meantime, the industry is holding its breath and wondering about the impact on jobs.

The oil and natural gas industry supports 9.2 million U.S. jobs, and... more »

Yesterday, Interior Secretary Ken Salazar announced that government scientists have until Oct. 1 to gather environmental, ecological and technical data to inform decisions on oil and natural gas development in the Alaskan Beaufort and Chukchi Seas.

This news comes after the administration announced that many Alaska Outer Continental Shelf (OCS) lease sales under the current (2007-2012) five-year plan will be canceled and no additional leases will be offered until additional scientific data is collected.

This summer, U.S. Geological Survey (USGS) scientists will complete a review of Beaufort and Chukchi Sea information and look for knowledge gaps. Three exploratory wells expected to be drilled by Shell on existing Chukchi Sea leases will provide additional data.

Meanwhile, the Minerals Mana... more »