Industry appeals Gulf Court ruling, citing risks to U.S. energy security

(WO) — The American Petroleum Institute (API), EnerGeo Alliance, the National Ocean Industries Association (NOIA), and Chevron U.S.A. Inc. have appealed a recent court ruling that invalidated the National Marine Fisheries Service’s (NMFS) Biological Opinion for the Gulf of Mexico.

The decision, effective Dec. 20, could halt both new and ongoing oil and gas operations in the region.

The groups argue that this ruling threatens U.S. energy security, potentially disrupting a crucial source of oil and natural gas. They warn it could lead to job losses, reduced state and local revenues, and negatively impact energy affordability amid ongoing inflation and geopolitical tensions.

The court’s decision to vacate the Biological Opinion without allowing NMFS time to issue a revised opinion could severely delay or stop permits for routine operations, affecting both production and environmental protection efforts.

“American oil and natural gas production in the Gulf of Mexico is a driving force of energy security here in the U.S. and around the world, supports hundreds of thousands of jobs and generates billions for state and local revenue. If this ruling is left uncontested, a critical source of current and future U.S. energy supply could be in jeopardy at a time of persistent inflation and geopolitical instability. We intend to pursue all legal means to prevent the far-reaching consequences of this ruling for Gulf Coast economies and American families that depend on access to affordable, reliable energy.”

The U.S. Gulf of Mexico is a major oil producer, accounting for nearly 15% of total U.S. crude oil production. If it were a country, it would rank among the top twelve oil producers globally. In 2023, the Gulf oil and gas industry supported over 412,000 jobs, contributed more than $34 billion to the U.S. GDP, and generated $6.1 billion in federal revenue.

Revenue from offshore energy supports the Land and Water Conservation Fund and other programs that protect green spaces and public parks. Since 1965, the industry has contributed nearly $41 billion to this fund and provided over 42,000 state grants for park restoration.