U.S.Expands Offshore Oil, Gas Drilling on Outer Continental Shelf

U.S.expands offshore oil, gas drilling on outer continental shelf

WASHINGTON, April 30 (Xinhua) — The U.S. Interior Department on Monday announced a major federal initiative to boost oil and natural gas production on its outer continental shelf in the Gulf of Mexico and off Alaska.

The program could produce 10 billion barrels of oil and 45 trillion cubic feet of natural gas over 40 years with a revenue of almost 170 billion U.S. dollars in net benefits for the United States.

“The Outer Continental Shelf is a vital source of domestic oil and natural gas for America, especially in light of sharply rising energy prices and increasing demand for these resources,” said U.S. Interior Secretary Dirk Kempthorne.

“This energy production will create jobs, provide greater economic and energy security for America and can be accomplished in a safe and environmentally sound manner,” he added.

The program proposes 21 lease sales in eight planning areas. Twelve sales are slated for the Gulf of Mexico, eight off Alaska, and one in the Mid-Atlantic Planning Area, about 50 miles off the coast of southern Virginia, according to the Interior Department.

Offshore energy production is one of the largest sources of non- tax revenue for the federal government. The new program will generate billions of dollars for the U.S. Treasury, said Kempthorne.

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