The American Petroleum Institute (API) is opposed to raising taxes on the oil and gas industries. According to the API, the preferred approach is increasing access to domestic energy. That would add 530,000 jobs and create $194B in new revenue, according to a recent API TV ad.
The API assumption is that there are accessible oil and gas reservoirs. The fact of the matter is that oil production peaked and then continued on a consistent decline since 1970 in the lower 48 states. Alaskan oil production peaked in 1988 and the Gulf of Mexico oil production may have peaked in 2003. There may be oil residing in the outer continental shelf, but the extent of oil reservoir volumes are uncertain due to absence of modern seismic data. Further, shale gas reservoirs may be considerably overestimated as reported in my recent blog post.
Perhaps the API should explain what oil and gas reservoirs they were considering that would add 530,000 jobs and create $194B in new revenue.Tags: Alaska, American Petroleum Institute, API, Domestic Energy, Gulf of Mexico, Lower 48 States, Peak Oil