Oil and Gas Eyes New Reserves in Gulf of Mexico, Outer Continental Shelf
Oil and gas interests are eyeing the Eastern Gulf of Mexico and the outer continental shelf in the Atlantic and Pacific Oceans to add the equivalent of 3.5 million barrels per day to U.S. oil and gas production over the next couple of decades.
The three areas “are almost entirely off limits to offshore oil and gas development, but could be included in the federal government’s next five-year leasing program,” Fierce Energy reports.
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The National Ocean Industries Association and the American Petroleum Institute calculate the additional activity would yield $449 billion per year in private sector spending by 2035. The investment community, meanwhile, is increasingly coming to grips with the reality that most known fossil fuel reserves will have to stay in the ground in any realistic low-carbon scenario.