Cassidy Continuing the Fight for Offshore Revenue Sharing Bill

WASHINGTON—US Senator Bill Cassidy, MD (R-LA) today announced the continuance of the fight to pass the American Energy and Conservation Act of 2016, which received the majority of Senate support in a 51-47 vote. 

“This bill would create 280,000 new jobs and generate $51 billion in government revenue. This makes sense for our economy and for the well-being of middle-class Americans,” said Dr. Cassidy. “Getting today’s floor vote was a victory. The majority of the Senate supports this. The fight for this pro-American legislation will continue.” 

This legislation provides for more equitable revenue sharing for states involved in existing, new or future energy production from both onshore and offshore leasing areas. It also makes funds available for various conservation and coastal restoration activities.

Several stakeholder groups continue to support the bill.

“America has tremendous untapped offshore energy potential, and this important legislation will ensure that coastal states have the opportunity to experience the same economic boost from energy exploration that we’ve seen in other parts of the country,” said Karen Harbert, president and CEO of the U.S. Chamber’s Institute for 21st Century Energy. “This legislation is particularly important now that we will have an administration interested in expanding areas open to exploration, which we look forward to working on in the coming months.”

“We applaud the Senate’s attention to this important issue and ask that Senators vote in support of the American Energy and Conservation Act. We know that forward thinking policy decisions made today will play a key role in our energy stability for years to come and revenue sharing is a critical component to our future energy production,” said a coalition of energy groups, including API, NOIA, IPAA, AXPC, IADC, IAGC, Western Energy Alliance and US Oil & Gas Association.

“Securing public recreational access continues to be a top priority for the sporting community. By dedicating a portion of Land and Water Conservation Fund dollars to access initiatives, these ‘Making Public Lands Public’ provisions provide critical resources to ensure that the nation’s sportsmen and women continue to have places to fish and spend time outdoors,” said Congressional Sportsmen’s Foundation President Jeff Crane.

“This legislation is a win-win for Louisiana. It will incentivize job creation and investment in the state’s oil and gas industry, as well as provide much need funds for coastal protection,” Gifford Briggs, Acting-President of the Louisiana Oil & Gas Association said.

Energy and Natural Resources Chairman Lisa Murkowski (R-AK), Sen. Tim Scott (R-SC), Sen. Dan Sullivan (R-AK), Sen. Thom Tillis (R-NC) and Sen. David Vitter (R-LA) co-sponsored this bill in the Senate.

American Energy and Conservation Act of 2016

For years, energy activities in coastal Gulf States and adjacent offshore waters have produced billions of barrels of oil and trillions of cubic feet of natural gas for American energy consumers. In 2010, for example, over 30 percent of the oil and 11 percent of the natural gas produced in the US was produced in the Gulf of Mexico. Gulf States support offshore energy development for the rest of the country and provide the support for, and pay for the infrastructure needed to bring this energy to market.

With all development, there are increased costs associated with supporting increased traffic. This includes additional use of local and state resources, as well as transportation corridors such as pipelines, vessels and trucks, in order to get the energy delivered to consumers all across the US.

Addressing the historic costs of hosting a capital-intensive industry while ensuring resilient domestic energy supply can only be attained through equitable revenue sharing. This bill is anticipated to provide billions for coastal restoration efforts. 

• Read the fact sheet here.

• Read the legislative overview here.

• Read the legislation here.