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tv   Louisiana Governor Experts Discuss Offshore Energy Development in...  CSPAN  May 17, 2021 12:47pm-2:51pm EDT

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u.s. can be with china. a procedural vote is set for 5:30 p.m. eastern. they are expected to continue work on that for the week as well as more of president biden's nominees. watch apple to gavel coverage of the senate live on c-span2, the house live on c-span. >> a group of senators along with louisiana governor john bel edwards now discuss offshore energy development with a panel of experts. >> the meeting will come to order. >> take a minute to get in place and will be ready to go again. the committee meeting today is for both the business meeting and a hearing, and we're going to begin considering nomination of tommy to be the deputy
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secretary of interior. we are going to do that when we get a quorum. we need to have 11. whenever we do we might break from hearing, whoever he speak at the time to get sometimes it's hard to keep 11 but if we have 11 walk in the door will pause at the time, do our business meeting and get right back to our hearing. i believe he will be an outstanding deputy secretary. he is expense, , he knows the department of interior and is familiar with the wide range of issues that come before us. he has braces or as a first right the bureau of ocean energy management and assistant assistt secretary for land and minerals management and as chief of staff of the department. he excluded in the street he is both a firm grasp of the issues and the ability to listen and learn and work with all sides and to find commonsense solutions. i believe centage on both sides of the aisle will find that he
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is someone they can work with. his performance in a in a o receive it in the street he has knowledge and expand in the temperament and the skills needed to serve in this important position. i believe he is supremely well qualified for the job and i heartily support his nomination and i will say to my good friend, governor john bel edwards that he pronounces it boudreau and you pronounce it, how? boudreau. a whole difference there, a states away. so what we do is we wait until we have a quorum and we will introduce him and then senator barrasso have his introduction also. senator barrasso, please. >> thank you, mr. chairman. today our committee is going to vote of the nomination of tommy
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beaudreau to serve as deputy secretary of the interior. it confirmed he will play a critical role in managing 20% of our nation's lands and natural resources including our national parks and monuments wildlife refugees and outer continental shelf. he will oversee the management of the largest water supply in the west and our nation's responsible is to american indian tribes alaska natives u.s. territories and associate states they will to public lands. this access is critical to wyoming and the west. it allows people to make a living from america's abundant natural resources. in wyoming that includes the ability to grace our livestock come to visit our national parks in the traditional and renewable energy supplies. his experience at the department of interior is extensive. he served in important leadership role roles at te department during the obama administration. as an attorney in private practice he handled matters relating to the department including conventional and renewable energy and environmental litigation. as the son of the worker in the
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proto-bait will fill in the north slope of alaska he has the first-hand appreciation of the benefits that energy production on public lands affords to millions of americans. his background and experience qualify him to serve as deputy secretary of the interior. what concerned is a biden administration's opposition to responsible resource development. and the administration first when days it's unleashed a barrage of executive actions the threatened to destroy the leibniz of oil, natural gas and coal workers in the west. states of ally on energy production on public lands will be the hardest hit. this includes my home state of wyoming, mr. beaudreau's posted of alaska and senator collins -- secretary haaland's home state of new mexico. during his nomination hearing mr. beaudreau testified if confirmed i commit he said to have an open door and open mind on the important challenges before us and also commit to listen to and collaborate with
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this committee and with each of you. the department needs to listen and collect clever withf wyoming and the west. mr. beaudreau can serve as a voice of reason in that administration that is waging an economic war on energy workers in my home state and across the country. america needs and all the above energy strategy that includes coal oil natural gas nuclear power and renewables. i believe mr. beaudreau understands this really and i will support his nomination. >> thank you, senator. we will turn out to the hearing until we have our 11 numbers that will be present and we will go right into the business meeting. i want to thank everyone for being here today to discuss the status of offshore energy filled with oil, gas and when and offshore leasing programs. in january the administration announced a pause in the oil and gas leasing won the kentucky derby of both the onshore and offshore leasing programs. in the meantime it's my understanding activity on
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existing leases has continued with over 250 250 well perms approved for 89 unique wells and production continued. i like to note the leasing programs have impacts to many of the states represented on this committee. i believe the new administration has the right and responsibility to take a pause and evaluate how this energy programs are working. my goal for this hearing just as it was for onshore energy program hearing two weeks ago is to set a baseline from which the committee can work to make sure we strike the right balance between american energy security and independence, environmental stewardship and ensuring fair returns to the taxpayers from our shared resources. it is my hope the administration will take into these discussions into account as part of their ongoing evaluation and a forthcoming report. turning now to focus on oil and gas production on the outer continental shelf, or the ocs, i would like to acknowledge a significant role offshore production place in our domestic energy portfolio.
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providing 16% of all domestic oil production and a 3% of domestic natural gas production. this development produce an average of $3.27 billion annually in revenue for host states. the federal government over the last five years through royalties, rents, bonuses and other fees. 37.5% of certain oil and gas revenue is shared with coastal states under the gulf of mexico is energy security act. commonly referred to as go mesa which i expect hear more discussion about today. additionally 27% of the revenue on the first three nautical miles of federal ocs waters issued with the closest date. let me be clear. every state and county in the country has benefited from ocs revenue through the land and water conservation fund for which we secure $900 million in permanent annual funding along with addressing deferred maintenance on our public lands in the great american outdoors
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act last year. these programs will preserve our majestic public lands for generations to come. it is important to recognize the practical and historical differences between onshore and offshore production and the leasing systems. laws in different peers within the department of interior that also manage them. for one, offshore leasing is managed by the bureau of ocean energy management, often called -- also understand the capital cost, the timelines for development, expiration uncertainty and risk of offshore development are very different. in addition to encouraging possible to mitigate the potential safety risk is incredibly important and i look forward to hearing what lessons were learned from the deepwater horizon disaster and what steps have been taken to make sure that never happens again. i'm also very interested in hearing more about how offshore producers have taken steps to reduce damaging and wasteful methane venting and flattering. as i have said before i'm a strong supporter of
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all-of-the-above energy policy and in the light i'm also very interested and administration is focused on expanding offshore wind. i know the manufacturers are working domestically in response to the opportunity for wind energy here in the united states. as well as designing substitute mentors that will require particular critical minerals with uncertain supply chains. this is important innovation driven by u.s. manufacturing know-how and we need to keep these concerns in mind as we look to develop offshore wind energy. unfortunately in the past boom the federal agencies involved in the process have not focused on the offshore wind program to dedicate appropriate resources. the biden administration seems keen to change that. in fact, vineyard went inside to become the first commercial scale offshore wind project having just received their approval for construction and operation earlier this week.
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unfortunately this comes after the submitted the plan for approval in december of 2017, nearly three and half years ago. with construction expected to take another three years we'll be looking at almost six and half years to produce power. i understand the first project is the hardest but i'm hoping we can find ways to improve the process and provide some regulatory certainty for the offshore wind industry. i look forward to hearing from boem about how we might work together to bring some of the hurdles so that good projects can move forward anymore timely manner. ensuring that are permitting environment makes efficient in order to develop possible in a timely fashion is critical, whether we're talking about pipeline infrastructure, critical mineral mining and processing, transmission, or offshore wind. if we can't get the permits in place all the great plans in the world will not make a difference because we won't be able to get anything built. with that i look forward to our
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robust discussion today. with our panel at the scene which witnesses and double turn it over to my ranking member, my dear friend senator barrasso to give his opening remarks. >> thank you so much. i would point that we have ten other required 11 -- i know people on tight timelines, please interrupt my opening statement to take the book and i will continue. >> will do. >> thank you, mr. chairman. thank you for holding this very important hearing today. wyoming may be landlocked, we have much in common with states that a real and gas production of their coasts. like western states the states of louisiana, texas, mississippi, alabama and alaska understand the importance of federal oil and gas production. jobs in the offshore oil and gas industry a well above the average state and national wage. these are jobs of the family out of poverty and put children through college. oral and gas production in federal waters also generates a critical source of revenue for the federal government and the states. oil and gas production in
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federal water supports the land and water conservation fund and the national parks maintenance backlog fund. this funding enables the department of interior to preserve some of our most treasured landscapes for generations to come. oil and gas production in federal waters also supports coastal restoration projects which are especially important to louisiana and other gulf states. in fiscal year 2019 oil and gas production on federal land and waters accounted for 22% 22r nation's oil production and 13% of our nation's natural gas production. like oil and gas production on federal land, production on federal waters is essential to america's energy and natural, national security. it's helped the united states become the largest oil and gas producer in the world. it's given our -- as energy for independence from our nation's adversaries and it's helped keep energy prices affordable for
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american family in businesses. while states in the west along the gulf coast and alaska all recognize the importance of federal oil and gas production, the biden administration does not. in january president biden imposed a a ban on new oil ans leases on federal lands and waters. this isn't a pause for a review. it is a ban with no end in sight. .. this means fewer jobs for americans, less revenue for states and the federal
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government and more imports of foreign oil. to that point, in this very room, in this very committee senator murkowski noted a few weeks ago quotes, russia is providing more oil to the united states and alaska is currently. this is unacceptable. american families to the whims of russia countries in the middle east is not an energy policy. president biden's leasing man must and and and immediately. going to hear from john edwards. like wyoming, new mexico and other western states the people of louisiana uncertainty from president biden's actions. governor, thank you for your willingness to travel here and testify for us today. i know my friend senator cassidy will do a full introduction of you shortly and i want to thank all the witnesses for appearing and i look forward to yourtestimony . we do have a quorum
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>> going to our business meeting right now. and since the ranking member senator barrasso and myself have given our statement is there any members wishing to see or be heard on mister boudreau's nomination? any members? first i willcall the role . >>. [rollcall]
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>>. [rollcall] >> on this boat the aye's are 18 and the nose areone . that includes our business meeting and we will report mister boudreau out and we will now turn to our hearing thismorning and with that , we have a tremendous lineup today and the distinguished
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panel of witnesses with us. we have this man 11, the director of the bureau of ocean management, john bell edwards of louisiana, mike obey, president and ceo of marine energy and russell holes, director of the center for offshore safety and retired coast guard captain. with that, we will start first of all with an introduction from senator cassidy. >> thank you mister chairman and senator for holding this hearing. i welcome the democratic governor of my state, governor john bel edwards. the governor and i are of different parties but without you serving his testimony i can say we both recognize it is a false choice between environmental stewardship and energy development . we understand you've got to balance the. the reason i know he's going
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to say this is in essence because he sent a letter to president biden quote, our ability to address climate related challenges improves our structural resilience and catastrophic water weather events and combat coastal land and reduce our carbon footprint relies heavily on sustainable and predictable oil and gas production in the gulf of mexico. offshore energy production and environmental resiliency is not a partisan issue in louisiana . governor edwards and i have worked together as the best position in our state for the energy transition occurring while recognizing oil and gas will continue to be an important part of the us energy mix for years to come. we work together because of climate change impacting louisiana unlike any other state and we have the largest climate adaptation plan which under his leadership is helping to fight coastal erosion. the revenue we received from this energy production or is so critical to this effort.
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unfortunately the current posture of the biden administration threatens our long-term ability to fund these projects while putting tens of thousands of jobs at risk. you said it senator barrosso, eliminating productions does not decrease demand. energy will increase but not without american energy produced by other nations with nonexistent admissions or lastly and forced emissions standards. strengthening those nations while americans lose their jobs and global greenhouse gases go up is not a policy to endorse. we need an energy policy which actually accomplishes worthy goals, that something that gets awards from activist groups but puts hard-working americans out of work . solutions are needed which move us in the right direction. thanks again for holding a hearing thank him and her edwards for coming up and all the witnesses on the floor of today's discussion. >> now were going to move to
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ourfirst witness , miss lefton, your openingstatement . >> good morning chairman, ranking member barrosso. i am pleased to a beer before you to discuss the role in developing america's energy resources on the outer continental shelf of the ocs. my name is amanda lectin, the director of the bureau of energy management and i'm honored to have assumed this role and responsibility of guiding the bureau as i hold its mission to develop america's offshore resources and environmental and economically sustainable way . as part of tackling the climate crisis the administration is committed to advancing the nations transition to a clean energy future. during his first week in office president biden issued executive order 14008 which
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directed the department of interior to review processes for renewable energy . on march 29 the department of the interior and commerce altogether committed to a target to deploy 30 gigawatts of offshore wind by 2020 and announced a series of initiatives that collectively demonstrate and all of government's approach that will catalyze the offshore wind industry in the united states and create nearly 80,000 jobs. owens delegated authority to regulate gives us a critical role in implementing the administration offshore wind plan . leasing activities to date include a competitive lease tales, 17 active commercial scale wind energy leases and we have received 14 industry submitted project development proposals and research leases today. just this week excitingly, secretary romano together announced the approval of the vineyard wind project, this is the firstlarge-scale
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offshore wind projects in us waters . construction and operation of the 800 megawatt vineyard wind energy project will create 3600 jobs and will be built like union labor entering advancing offshore wind is not only fighting climate change but supporting the american workforce. on march 29 the department of the interior announced that it finalized the bike wind energy area and boeing has submitted notices of intent to prepare environmental impact statements for revolution when and also has ongoing environmental impact statements for south fork. these advancements are truly a product of both boeing's diligent work to elevate environmental multiple use considerations and our engagement with theindustry , tribal governments and a variety of partners and stakeholders in state and local governments. we anticipate continued interest and growth in renewable energy of the ocs in years, as the advance administrations agenda and
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works to deploy 30 gigawatts of offshore wind by 2030 two by climate change and create good paying jobs. i look forward to workingwith all of you to ensure our offshore renewable energy resources are developed efficiently, responsibly and equitably . boeing is the primary agency charged with marine wealth such as sand and grass and is responsible for these resources . today our marine minerals program has focused on the nourishment and coastal restoration projects but we are also examining the potential sustainable production of critical minerals in the ocs. executive order 14008 directs the department of interior to pause oil and gas leasing on public lands and offshore waters pending a comprehensive review of federal oil and gasprograms . this directive is limited to leasing. it does not impact production or permit applications submitted under valid existing leases.
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such applications continue to be reviewed and approved. the directive also does not apply to state lands or lands the united states holds in trust for tribes. the executive order does provide an important opportunity to review our oil and gas programs to make sure it serves the american public and store the balance on america's public lands and water to benefit current and future generations and undertaking this review boeing is considering whether royalties and other physical terms of massive returned to taxpayers and is incorporating the cost to climate change and the environments entering our actions respect our government to government relationship to tribal nations and committingthe principles of environmental justice . we expect to complete this review in a timely manner but do not have a timeframe for completion . an interim report to describe our focus and next steps will bereleased in early summer . input received from a virtual forum that included a
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perspective from industry, tribes, labor and other organizations as well as over 100,000 republicans will also be summarized in that report. president biden issued an executive order which directs the federal government to be decided by science and ensure the integrity of it in our federal decision-making. secretary holland issued an executive orderwhich provides guidance for that . while these orders issued a renewed focus on and respect for the importance of value science brings to our government and decision-making both have always been guided by rigorous scientific research at the foundation for our decision-making and that will force continue with regular area as secretary holland stated we put off the transition to clean energy for generations. now offshore wind industry has the potential to create tens of thousands of the name family supporting jobs. boeing plays a final vital role in advancing offshore energy development and we are
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committed to active engagement in all stakeholders, partners including members of this committee . i look forward to our continued work together and to answering your questions today. i'm grateful for your time. >> now we will hear from governor edwards. >> iq chairman and ranking member barrosso and members of the committee. appreciate the opportunity to you on the issue of offshore oil and gas development. i'm the governor of an energy producing state also estate on the frontlines of the client climate crisis. the developments occurring in the gulf immediately adjacent to arcos, directly affected and unquestionably impacted by the federal policies regarding oil and gas production and i'm here today to urge the congress and administration to do two things. first, resume golf leasing
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for the exportation of oil and gas by the third quarter of this year number two to increase the revenue from oil and gas returning to coastal states to better address the impacts of climate change to protectour coastal communities . change is a serious threat to louisiana. it's impacting our state in two major ways. we're experiencing stronger weather and more frequent hurricanes and other storm events . last summer and early fall louisiana was hit by four hurricanes. that's a record in modern times. two of the hurricanes made landfall less than 15 miles apart and all of roughly the same path across southwestern louisiana. morrow was the strongest hurricane to hit since the 50s and approached hurricane strike as it approached arkansas . that never happened before. our people are recovering from the devastation of the storms. the second major impact is sealevel rise is impacting our coastal wetlands. louisiana's loss of
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approximately 2000 square miles of coastal wetlands since the 1930s and since the 90s however both our people and our state and local leadership have been committed on a bipartisan basis to the task of protecting and restoring are important coastal wetlands. we've established the restoration of authority to lead this effort and we developed a public and science the process a master plan or a 50 year $50 billion program to protect and restore our coastal wetlands. last year through an executive order i established the climateinitiative task force consisting of 23 meeting experts from our state . the task force will produce a suite ofrecommendations in february 2022 . today the task force is exploring carbon capture and storage. wind power generation in our offshore waters and the federal offshore waters and the development in the form of hydrogen as a possible future based fuel. my order adopted for the state goal of net zero carbon
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emissions by 2050. this is an ambitious goal but it's what the global scientific community says is necessary if we want to avoid the most severe impacts from climate change. our recent announcement in louisiana is a $1 billion renewable refinery taking on fossil fuels with carbon capture and sequestration integrated into that operation. it will be carbon negative when it's done so we're committed to these goals but at the same time we are a major oil and gas producing state . louisiana's two natural gas terminals shipped 55 percent of the company's exports last year. their home to a substantial portion of the nation refining and petrochemical capacity and most of the support industries have workers for oil and gas development in the gulf of mexico are located in our state . the oil and gas produced offshore moves on shore
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through pipelines that cross our coastline. oil and gas industry refining and petrochemical industries together are a foundational cornerstone part of our state's economy. an abrupt halt or precipitous reduction or prolonged pause in offshore oil and gas production would be devastating to our economy and leave many of the onshore impacts of federal offshore oil and gas to go unaddressed . in order for louisiana to experience an orderly and responsible transition even for the nation and our economy to be able to transition responsibly, federal oil and gas production must continue in the gulf and well into the future. we must continue to receive federal assistance for the reduction. by constitutional amendment all revenue-sharing off our coast is committed to the protection and restoration of our coastal wetlands and flood protectionfor louisiana citizens .
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the impact positions we received must be more closely paired with impact assistance for onshore and oral energy development. a few weeks ago your hearing was focused on oil and gas development and onfederal lands . impact assistance is an even 50-50 split between the treasury and the eight. production from the gulf of mexico which accounts for seven percent of all us natural gas only provided 6.8 percent to the gulf coast coast states. so while 457 and a half million dollars went to wyoming and 707 million to new mexico only $249 million was shared by all for gulf states. i commend senator cassidy for working with senator whitehouse and others on new legislation to reflect an updated approach to revenue-sharing covers revenue from all wind energy production and appropriately updatesrevenue-sharing from the gulf of mexico .
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we've gone under laws passed in 2006. mister chairman, thank you for allowing me to testify on these vital issues. we are committed to addressing climate change responsibly to an orderly energy transition but we must find a way to take a balanced and responsible approach where we are producing clean oil and gas while mitigating the causes of climate change and environmentally responsible oil and gas production must be allowed to continue on the continental shelf in the gulfof mexico . thank you everyone here from mister holmes. >> good morning chairman manchin turn your mic on. >> there you go. >> good morning chairman
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manchin, ranking member barrosso. my name is russell and i'm the director for the center of offshore 80. cos was established in 2011 with a mission to advance offshore safety. cos is leading the industry to perform optimally and we are on the right path for making that happen through the safety and environmental managementsystems program . prior to joining cos last year i served for 27 years in the us coast guard where i had the privilege of facilitating commerce while ensuring the marine transportation system operated safely, reliably and securely. in my last assignment i was a coast guard speed regulator oversee offshore oil and gas safety, purity and environmental compliance. with recent cyber attacks on the colonial pipeline, it's important to note at the outset cyber security is a top priority and are industry leaders are engaged on a continuous basis with government agencies to mitigate risk and fully understanding the evolving threat landscape. events this week demonstrate
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the importance of us offshore and onshore along with the pipeline infrastructure of all oil and gas to be able to deliver safe, reliable and affordable energy to keep our economy running. offshore oil and gas production is a significant source of energy for the nation and the world which is why it's safe and reliable production has become the centerpiece of the industry's continued work on the hour continental shelf. the goal is long been a key producing regions of the united states. in 2020 gulf of mexico production for accounted for 15 percent of oil production and two percent of gas production. lowering our dependence on foreign energy. offshore operations bring substantial economic benefits to the gulf region and country. offshore exploration supports hundreds of thousands of good paying jobs and is conducted under some of the most stringent regulations in the world. offshore exploration and production contribute
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billions of dollars to federal and state governments every year which support programs like education, infrastructure and conservation efforts. in 2019 the department of the interior dispersed $12 million from energy production on federal lands and waters to the us and state governments and in addition earlier this month doi announced 1.6 billion to address critical deferred maintenance products and improve transportation and recreation infrastructure in national parks, wildlife and recreation areas at the indian education school. this funding through the great american outdoors at advanced through the committee is provided by energy development on federal lands in the water. while there are vast benefits of us offshore oil and gas explosion is essential to produce these natural resources while ensuring the safety of the offshore workforce and protection of theenvironment . due in large part to industry leadership and lessons
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learned over the past decade, industry has remained focused on enhancing its ability to protect workers , prevent and intervene and respond to any still with the most effective mitigation measures possible but with this in mind industry has made advancements to safety culture, development revised industry standards to minimize and prevent accidents and still, track, report and learn incidents, develop and improve subsidies and intervention capabilities , mitigate environmental impacts through greater spill response technology and enhanced safety environmental management systems and establish the support of the efforts of the center for offshore it is with this focus the cos is now entering itssecond decade of service . offshore operations improve safety, protect the environment and increase sustainability on the ocs through pure learning opportunities, sharing of the practices and some
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certificate programs. this program was established on ati recommended practice through development of a safety and environmental management program for offshore operations and facilities. industries and cos work has led to continued advancements in technology, new and improved industry standards and enhanced best practices, advances in risk-management, smarter regulation and innovative approaches to addressing offshore safety. continuous improvements occur through learning, collaborating and innovating and the offshore oil and gas industry remains committed to following through on its responsibility to operate in a safe and environmentally sound manner. together with changes made by federal regulators collective action has worked to improve and will continually improve the safety of offshore energy to. thank you for the opportunity to address the committee today to answer anyquestions .
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>> thank you mister holmes and now we will have mister marauding. i'll try to get it right. >> that was close. >> thank you chairman, ranking member and members of the senate committee on energy and natural resources for the opportunity to testify . my name is mike minarik and i'm ceo of marine energy independence production company with exclusive focus on the federal waters of the gulf of mexico. for 22 years marino has been drilling wells in the gulf and has invested $4 billion of capital and in that time we pay the federal government $1.1 billion in royalties alone. we decommissioned 300 wells, 45 platforms and during the last 10 years have been one of the most active drillers in the gulf of mexico. we conduct our operations with an intense focus on safety and introduce volumes of oil and natural gas in a responsible manner. our operations support thousands of jobs along the
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gulf coast and around the country. i also you today on behalf of the goal energy alliance which is a coalition of leading offshoreproducers . these are not household names but we are the backbone of the offshore industry in 2019 collectively produced approximately half of the oil and natural gas from the gulf and provided half of the offshore revenues paid to the us treasury. for 70 years, the united states gulf of mexico has been a world-class basis for oil and gas development and energy security. the gulf coast residents in adjacent states texas louisiana and mississippi overwhelmingly support offshore energy development which contributes to local communities with high paying jobs. 2003 to 2019 us offshore production contributed $107 billion to the us treasury through royalties, lease bonuses and rents. 17 percent, about 70 percent
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of every dollar of revenue goes back to the federal government and various programs including land and water conservation funds, the great american outdoors at and no mesa. finally the extensive infrastructure in the gulf represent promising opportunities for emergent technologies and support of a lower carbon future including offshore wind, hydrogen fuel generation and of captured carbon. and on top of all that, the oil produced in the gulf of mexico is among the most environmentally advantaged in the entire world . oil and gas will remain critical fuel sources for decades to come as we transition to a less carbon intensive energy source, we should not reduce or constrain oil production on the gulf of mexico and doing so will not impact that domestic demand. it will simply force us to meet us oil demand by importing foreign crude with
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significantly higher greenhouse gas emissions and that produce in the gulf of mexico. the us imports about 6 million barrels of crude every day and our recent wood mackenzie report shows the largest us crude importers including canada, mexico, colombia, nigeria, russia and iraq have significantly higher greenhouse gas emissions and us offshore. this report greenhouse gas emissions from these countries of one and a half to 3.4 times the gulf of mexico greenhouse gas emissions on a per barrel basis. why is the gulf of mexico so much better? one because offshore operations have been stringently regulated for more than 70 years by the us government and that's not necessarily the case with those other sixcountries . flattering of natural gas is very limited and is tightly regulated in the offshore.
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control and monitoring of potential greenhouse gas lease is key and most offshore facilities produce very high oil production five volumes in the centrally located platforms resulting in much mueller footprints where we can manage those emissions. the use of leading edge processes for gas detection, methane captures and reduced emissions that we implement almost platforms is also key. finally there's an extensive existing pipeline network that eliminates the need for any shipping or talking about oil. we put it in the pipelines and it ends up in a refinery there's no net against exposure to the atmosphere. after 70 years and 55,000 wells have been drilled in the gulf of mexico we still find new sizable opportunities to drill. one of the biggest advancements enabling new resource discovery is simply the improvements in computing
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speed are also familiar. as better seismic techniques open up new drilling opportunities it is uncertain where those resources might reside. all of the gulf needs to be available to lease. recent laws on federal lease sales has had an immediate and chilling effect on offshore oil and gas producers forcing companies, shareholders and capital providers to seriously rethink their long-term commitment to thegulf . i believe more uncertainty creates lower investment and both investment and oil production have already impaired or reduced. the result of continued pause for or an outright ban will be more imports sourced from areas of the world where oil will be produced under much lower environmental standards . let's move towards a significant lower carbon future and let's get there as quickly as wecan , but during the transition should ensure that we maximize the distinct economic security and
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environmental advantages of energy production from the us gulf of mexico. thank you very much. >> now we will begin with our questions and my first question is mister holmes, we're having this discussion 11 years after the bp water horizon explosion and oil spill red accident enormous environmental and human costs and it's important to keep in mind 11 people lost their lives . can you walk us through what has changed since then and how we can be sure that it will happen again and i'll follow up, is there more to be done? or do you feel confident that we have come to full circle and to make sure thisis not going to happen again ? >> i think we continue to learn every day. as part of my role, how can we do better than we did today and how can we continue to constantly learn and
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that's why the center for offshore safety exists. to be able to learn from catastrophes the deepwater incident that happened. >> help us cause all this damage and what is being done to prevent it from happening again? >> on april 20, 2010 11 people tragic lies with the was really well with the condo area and they lost control of it from a pressure perspective the well became uncontrollable. talking to people in the position when i was in the coast guard, there's a different role in stock. >> was there a lack of oversight for just a negligence on the part? >> if you look at one of the studies when you look at with
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you where the try to not line up, how different barriers in place and mitigation that in every part of the way between a process perspective, your equipment, your different barriers and different aspects and every now and then when an accident incident, these different barriers and measures that you have in place , the one time there might be able ability in that piece or component lines up with the next one and the next one to rush you along but let me add this. have we been put in place since that's the way well like this again for this . whether it's equipment or technology hasn't been improved ? >> we've written over 250 new standards to improve how we do our different processes across the board. we developed newer and improved technologies for the to drill, how we're able to mitigate and prevent the blowout preventer's retweet
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improved the technology in that and have learned a lot of lessons on what worked and what didn't work from the equipment . >> we have inspectors right now making analogy to the new restrictions . >> if you look at your safe enforcement in the last couple of years the number of inspections that they done significantly with the inspectors they have out there to be able to look at it. we've implemented safety and environmental management systems were not required by regulation before any way. what cos is to make those management systems are hard to define years. >> you very much there's going to be more questions on this . i'm going to have to leave about 11:15 or so and governor barrosso will take over so i'll take the privilege of a couple of extra minutes.
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governor edwards, louisiana has adopted a constitutional commitment that requires all funds to go to the coastal relief projects as far as there are is for the state. so may say some limitation about how states can use the funds but it isn't as narrow focus. you spoke of the threats louisiana places. and coastal resilience this is going to be a two-part, governor and close the change revenue-sharing and also the caps that we have on right now with themesa , and i just go mesa, how did congress think about how the other state would spend those funds or should we intervene?as opposed to louisiana where the money is targeted for what seemed like all forstate and the gulf would have the same problem as relief . >> thank you senator for the question. i am reluctant to weigh in on how other states should spend
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revenue that they get from the federal government. because i don't know the most pressing needs in the states and i don't know what limitations there maybe on the sharing of revenue with respect to federal lands either. i can tell you that there was a precept sent and the $375 million as well ever funds are produced from the gulf, then get split according to a look betweenthe state of alabama, mississippi, louisiana and texas . so every dollar that we get those to coastal restoration and protection but we know that that is a pressing need. we've identified at least $50 billion worth of investments we want to pay over the years. this is the only guaranteed federal revenue that goes into that program single year.
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for the life of the mesa so incredibly important for us and we're doing really good work on post. i hope that maybe you and other members of the committee will come down and show you the were building, shoreline are having a positive and we talked about earlier was storms or i can inflict charles. that didn't happen and we believe it is because we don't particularly shoreline protection these projects are important to us and allowing poor revenue to flow. on federal: it would be beneficial to the state. >> editor. >> thank you mister chairman two weeks ago mark fort wyoming was. five on the impact president biden's oil gas leasing state.
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about what oil and gas leasing band means for the energy workers and communities. >> thank you so much senator for the question. we know that in just for an hour after the policy was announced the share prices for companies doing business in the gulf of mexico was adversely affected so there have been challenges already. we know for example that sales having happened, that's another source of revenue that comes to louisiana for, so we lost revenue there . the biggest, there are distinct leases at no and are being issued in time for exploration there. but if this clause really turned into something longer than the word paused suggest
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we know it will have a tremendously adverse impact on our state. so give you the numbers, we are top 10 oil-producing state and a top-five natural gas does not count when mexico 1/5 refining capacity in louisiana. it totals 55 percent of 2014 model louisiana and we added a lot but expiration and production to fabrication to servicing the refining, the chemical manufacturing, thousand. we don't only have 4.6 million, 250,000 louisiana are employed in this. it is responsible for any six percent of our gross thomistic product is another $4 million in state and local revenue. that's helping this industry is, senator so i don't mind
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the word pause because clause i think by suggest that there's going to be a resumption. we want the resumption and we want it as soon as possible so the worst impacts don't happen thesepeople don't lose their chance at putting themselves and their families . >> thank you, mister minardi to follow up on something the governor just said officials within the biden administration have repeatedly claimed oil and gas producers stockpile federal oil and gas leases and permits. his talk while in oil and gas leases in federal waters allowed under current law ? >> clearly not. there's clear terms on which we have to develop the lease or we returned back to the. they can it's definitely a use it or lose it proposition . when we buy a lease in the gulf of mexico there's money left to be invested and a lot of the technology that has to be applied to determine exactly what we have to potentially will be drilling for and what opportunity is
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there. the gulf you spent million dollars to purchase the lease . but you spend millions about god that invest in and review and study ties mcdata economic analysis and look at the cost to drill. in the deepwater wells cost hundred million dollars and different from a lot of the onshore. it can very likely the dry hole so hundred million dollars with no return on your capital, that's a potential outcome so of money is invested analyze the opportunity to reprocessing the. so sometimes the leases real that reality but million dollars ultimate indians of dollars of capital to develop the fuels fully. this is the analysis that has to be made.
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>> cannot ask you more on the word investment. in march governor of new mexico president biden on the impact of his oil and gas leasing. she explained the least bad (and gas producers to new mexico for private and state lands in texas . the resultsgoing to be a force for jobs, less revenue , more revenue for texas. is it fair to say that if the biden leasing plan does not consume offshore oil and gas will ship their investments from us waters to other parts of the world and is it fair to say that shift is going to mean fewer jobs for americans and less revenue or state and the federal government? >> thank you senator, absolutely. we have seen that already in our company. we had a rate working and we decided we pick up a second rig which establishes about 100 people and we had trouble getting the people to get on that rig and come to work. part of the reason was they saw a lot of uncertainty and leaving their current position. they were committing to a higher wage job in the gulf
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of mexico that's true among capital providers, shareholders and investors across the board . chilling impact of what's been done already in my administration with the reduction in drilling permits for 60 days, it was processed. if the fear that out there, the chilling effect of those statements, this pause and how long the leasing bands what to continue is of great concern to the industry capital providers and as you mentioned when old back from these types of companies . >> thank you mister chairman. >> senator. >> thank you. mister minarovik, i'm from nevada and we don't have a lot of oil and gas purposes and how many for drug use right now? >> now we have about 40 permitsin place to drill wells .
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>> is the impact those 40? >> and move those four words, was in? >> i would say it does is we have been aware in million dollars a year in the gulf of mexico our investors are concerned about the regulatory environment in which would be putting the couple hundred millions of dollars to get the well. it. >> 20 leases are you interested in pursuing human prevented from pursuing on. >> big purchases of leases. by six per year. >> any? >> we've identified a dozen
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or more leases to evaluate eventually did on in 2021. >>. >> ,great to see you again. let me ask you, in your testimony, you mentioned both the need to transition away from oil and gas consultant climate change. while he states alliance on reliance on phones derived from the canadian postal degradation, unison is important to have a responsible transition for continued production in the use of oil and gas resources c position themselves for a future sustainable economy. how you envision the federal government meeting state like yours in such a transition and what planets are state looking into to plan for that
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? >> question center. we believe that orderly transition is going to require some predictability and uncertainty and bulk laws works against that. i will tell you that by reference all the things mister minarovik said about all the production being carbon-based. so it's not, i know something was it sounds like the poolside we changed louisiana the worst transition to clear fuel sources, the same time reducing the ocs. but we know that the demand is inelastic so the supply will be sources where more greenhouse gases will be in a period into the environment so these things work
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hand-in-hand. use this is already already we get from google to actually work on our first to restore the coast and what imperfection, levies and things like that transition. anyone can see precisely how long on the road years, and this transition as we move in the direction that planet initiative task force whereby the greenhouse gas emissions to zero. relatively fewthousand five levels . use that time to develop a wind energy sector of our economy in louisiana to develop hydrogen you are capture the restoration area we have tremendous opportunities by the way money is being spent today in louisiana. these are not theoretical concepts.
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these are very real so were going to use this opportunity to transition towards less carbon intensive fuel sources while developing the other sectors of. you. >> is your testimony global greenhouse gas emissions, producing oil and gas out of the gulf of mexico for the united as the lowest greenhouse gas emissions profile for unit of energy. is that correct western. >> according to the wood mackenzie study the only country close was saudi arabia they did not include transportation of the oil back to the united but the
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other importers we use, canada in particular is exposes us to a lot of extra greenhouse gas emissions for importing oil to canada relative to the gulf of mexico. >> i know from an obama era study and we have the cost of transportation to the oil and gas brought in from saudi, there emissions profile is worth. >> that was stated in a 2016 report prepared under the obama administration . >> one more time, since we know people are going to be using oil and gas, if you're producing gas on the gulf of mexico, it has the lowest greenhouse gas emission profile per unit of energy that our shores than any place else that oil and gas comes from in the us or from around the world. >> we've got to get on the gulf of mexico about associated with domestic. we talked about the security,
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about the ability for us to control international events because of our production of domestic oil and gas and now we need to talk about the house gas emissions and producing are likely regulated environments that allow us to produce the cleanest barrel in the world as we go through this transition. >> one more thing. there's obviously a lot of tension worldwide. how do you create good paying jobs for or wherever you live, let's say america that don't necessarily have an advanced degree. good people, hard-working but they don't have a phd in older engineering. looking at your workforce, not the engineers, i'm talking about the folds that go out to the rig . two weeks on, two weeks off. what is the average amount of money they earn? >> we have a wonderful, qualified,.
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guy only has a. what while. jobs. our state was pounded by katrina. we've been hit by multiple. tell us if you don't mind how these dollars ridge bp oil dollars are to contribute to our coastal restoration plan. >> back to center. there are a couple of pots of funding r thoil spill settlement that the state of louisiana benefits from work on a reimbursement basis. if we don't have the dollars in the first instance to pay for the project, we don't have a project to be reimbursed for and that's specifically the pots of funding. so it is important. >> the mesa dollars by that. >> how much is our coastal
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restoration plan over the next 50 years, i.e. the plan to prevent us from having another hurricane katrina lack new orleans ? >> it's a minimum of $50 billion. >> miss left in, here we hear about fantastic jobs, $100,000 for full who may have a high schooleducation , only with the great people and they're getting a better future for their family. we have the lowest emission profile per unit of energy produced in our shores than any place in the nation and its providing dollars to build our long will thisclass is even being considered ? >> as i said in my testimony ability to the to review programs and make amount to a fair return to the american taxpayer . is what we are doing. >> the question we need to raise the royalty payments,
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goes quite right now on shortcuts are better royalty payments estate less to the panel and here federal government is getting more of a reward. >> actually i believe your referring to the revenue-sharing. i think it's critical for 90 percent of those revenues come from royalties that means our production continues, so that means as production continues we expect it would in fact, 55 percent of the 12 million acres that are under lease in the gulf of mexico we don't even plan. >> that is clause is going to end in referred invested long as there's going on. >> fortunately still seeing plant in and we are back. >> the new leases would have to plan for leasing. there are existing acreage
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under lease then what happens. >> hearing from field service but is as long as there's a pause no one will invest in new capacity. thousand people in our state are direct or indirectly employed in this . are you committing to us that the administration will once again begin to lease in the mexico. >> i'm committed we will have an interim report out in the early summertime and i'm glad to continue the card if you're american public there's 250,000 workers some of the earning hundred thousand dollars worth of college degrees including the construction jobs . we don'tget whacked by more hurricanes . at american has resumed leasing. if you're speaking of the american public benefiting from the great american outdoors which is rebuilding our nations parks, or from the land water conservation fund. they are seeing resumed leasing. ideal back.
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i'm just frustrated by this kind of interaction area. >> thank you. senator king. >> thank you mister chairman. mister pulled i'm a little unclear. who is it that you work for. is this a government agency or a private sector, who is it? >> we are supported by a group of offshore oil and gas companies that the industry sponsored group. >> i wanted that clarification. sometimes i hate to be rude. three years ago per that the failure to adequately rent regular timesbecause of the . i can guarantee that your systems are vulnerable to cyber attack today. whatever you tell me i can guarantee that clinton's hackers could be in there within several weeks. your systems are vulnerable,
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the turnings are vulnerable. what kind of strong systems do you have in place, let me rephrase the question. would you accept regulation by the some other agency of the federal government to ensure cyber protection because right now, you're vulnerable and we just saw this weekend what thatcan mean . >> i think i a collaborative approach between the industry and the whole of government is necessary across the entire nation in cyber security. in my last role in the coast guard i oversaw the gulf of mexico maritime security committee and safety and security are two sides of the same coin and within the security side you have physical security and cyber security. our last couple of exercises centered on the cyber side. cyber security for information sharing we would partner with the oil and
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natural gas information sharing analysis enter that is really interesting information sharing in the last couple of years and with our different exercises oil and gas companies would practice and work to find their vulnerabilities on their cyber systems and how to improve them on a regular basis. >> i hope you will continue that work and i hope you will take this recently. we keep getting wake up calls. and we keep not being fully awake. so i just can't emphasize more how serious this assessment is. the last two years as a cochair of the cyberspace commission, what's come through to me is the urgency of this problem and it just, we keep learning how serious it is. i assume you're heavily focused on this threat. >> obviously the colonial situation brought us to a new level. rrr it department updated some methods that were used and we are backing up our
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data. of course i also have an off-site facility in indianapolis to have backups put separately from our houston location. we have blocked all access outside the united states and we have a factory authority to access that data. >> that's crucial because we don't know the cause of colonial but it's likely somebody clicked on a fishing email. we can do all that we can do here, but cyber security starts on the desktop. and it's a culture within the company. i hope that i would urge you to for example higher hackers, red teams to test your systems the cause your cio tells you you are secure but you don't know until somebody tries to break in. >> i agree senator and we've done that a little inthe past but this has elevated it and we will take your advice . >> governor manchin and i always welcome governors
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because they're the font of most wisdom in our experience. we're always glad to have you. do you think a state should have the right to say no to offshore drilling off of their coast if they their legislature and governor make a determination that a field the risk is outweighs the cost. >> i do. that's not the decision we made in louisiana but i do think that the states should be able to make that decision. >> thank you.miss lefton, offshore wind. we talk about offshore wind but in this country that usually means on tour water with water up 50 feet or 100 feet. in other words it's a pylon in the water. the future is in floating platforms as you know the university is working on an experimental program. a couple of things. we've got to work out the
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compatibility of these facilities with traditional industries like fishing and in my case lobster ring. the other thing i'd urge you to attempt to do is think about offshore grid so that each offshore wind project doesn't have to develop its own grid system to enter the grade. we don't have multiple landing places. quite often we might want power to beeasy rather than ac because of lower environmental impacts , therefore fewer places to come ashore could be very important. so where in a period now where i hope your agency will be thinking about planning. >> ..
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>> thank you. my time has expired but i want to say the overall purpose here is to keep wyoming and nevada from becoming coastal states. >> indeed. thank you, sir. >> thank you, senator king. we appreciate your attention to our states. senator daines. >> thank you, senator barrasso. before i get the questions i would like to briefly highlight the events around the colonial pipeline hack. as we all know the hacking and subsequent shutdown of the colonial pipeline by russian connected groups has caused gas shortages in many southeastern states. first i would need to take aggressive action to hold these bad actors accountable and
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empower them for structure companies to protect their networks. but this attack also highlights another problem. across the eastern seaboard, particular the southeast, we are seeing panic and worry that gas shortages grow in communities. the long lines remind me of nearly 70s when we had inflation, 55-mile per hour speed limits and lines around blocks for gasoline. we need to be doing everything we can to avoid these types of panic at the pump scenarios. thankfully because of policies of the last administration we are still global energy dominant and thankfully now that the pipeline is back up and running the shortage will cease. however, because of president biden's war on made in american energy we may see gas shortages becoming a norm and not the result of bad actors. we need to be promoting and all of the above energy portfolio
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and build the keystone pipeline. i was out in eastern montana last week and it is tragic to see these communities, frankly bordering on poverty, that need these jobs and the economic activity and we have two and half million miles of pipeline and i don't know why present biden estopped that pipeline. we need it. we need to approve new oil oil and gas leases and we do not need to stifle american energy but i want to now turn to the hearing and how president biden actions are already affecting our communities. last year we passed that historic great american outdoors act and i want to thank my colleague from maine, angus king, who is a great partner in working together to get that strong bipartisan support to get that done. that bill uses energy revenues from onshore and offshore energy development to fix the aging and for structure at our parks. this bill brought republicans, democrats, independents together to increase conservation funding by using our robust energy
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economy to fund our parks and public lands. but the actions of president biden to stop leasing and his desire to end oil and gas development permanently can and will have a negative effect on the good work that congress did last year, including on our national parks. the leasing ban is already having an effect on the revenue generated by federal lands that would go to our parks. the longer interior and the president keep the ban going the more harmful that effect will be. how can this a administration reconciled their desire to increase conservation and support our parks at the same time you're taking actions to kill off the main source of revenue to restore our parks and our public lands. direct senator, thank you for the question. clearly i can't speak to the program but i can tell you for offshore and what we regulate that 90% of the revenues from oil and gas come from oil
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fields. we know that there is continued production that is continuing in the gulf of mexico and therefore continued revenue that is coming in to support things like l wcs, as you mention, senator. we see no impact to those funds at this time and appreciate you raising it. >> thank you for that. needlessly, at this time were thinking about the longer-term applications. it is having a chilling effect. in fact, today we are seeing sales and pipeline leases stop. where they are headed next is stopping production in the revenue generates and with wind and solar not generating the revenue needed for conservation it is only time before the parks will begin to suffer. i want to turn to the 30 by 30 initiative. several months ago the biden administration announced the goal of protecting 30% of all lands and waters by 2030 and montana has a legacy of conservation which i fully support but the lack of dt l's of this initiative would deeply concerning. the administration refused to answer questions or meet with me
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to discuss 30 by 30 initially and did not make those on how they would make that goal. once the report was public it contains high-level concepts and buzzwords to detract from a lack of information and contradictory statements. while the administration is adamant about placing 30% of lands quote conservation status they concede they do not know how to define conservation and even if they did, they have no idea how many lands are already in this status. this leads me frankly to fear the worst. president biden will unilaterally, unilaterally lock up lands and waters for future development. governor edwards, what are your thoughts on the potential use of federal laws to unilaterally inhibit energy development in order to meet they conservation goals and how could a designation like this affect state louisiana? >> senator, thank you for the question and, you know, i'm trying to figure out exactly how to phrase the answer.
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obviously, we know that oil and gas, oil and gas industry, like all business, like stability and picked ability and there is a cadence associated with how they developed leases. first of all you have to be able to get the lease and then you've got to put it in line for development. anytime you have an abrupt pause like we have right now that will have an adverse impact on their abilities to maintain that cadence and the longer the pause lasts the greater the interruption and the harder it will be to overcome that and the more adverse the impacts and so forth. and so, obviously i acknowledge that the president has inherent authority to review things and i'm just hopeful that the review will come out consistent with what the discussion has been made today, especially by
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senator cassidy and i mindful that the current five-year plan for development in the ocs was developed by the obama administration in 2016 and it is pretty clear that it says that greenhouse gas emissions will increase if you stop drilling in the gulf and in the ocs because you will deprive the market of the carbon advantage barrels of oil but instead allow these barrels of oil from elsewhere in the world to come in to the market because the demand isn't going to change and i'm actually optimistic that this will be the same conclusion that they will drop because it seems irrefutable to me and i just wish they would get there and create the policy and the program going forward and lift the pause. i don't know if that answers -- >> it does. thank you for staying focused on the science and the data and not ideology and politics. it's appreciated, thank you.
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>> senator heide smith. >> thank you, senator barrasso. being on the gulf state i'm excited about the conversation today. you know, it is such a part of our economy in such part of generations and the livelihood that are people in mississippi have been able to enjoy. governor edwards, what kind of shift in revenue and substance economic daily activity of the lives of louisiana can you describe to us if we continue to see the gulf coast state leasing or continue to be paused? how will that affect the state of louisiana and all the gulf states economically with the everyday life of the people that we represent? >> thank you very much, senator. we know that the revenue sharing will diminish over time because the lease sales aren't happening in the production will decrease and therefore we will have less opportunities to fix our coast and to protect coastal
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communities and we know that we need to do more and not less. we also know that we will shed jobs in the not-too-distant future if the pause is not lifted. i mentioned that all direct and indirect so about a quarter of a million jobs in the state that have 2 million people working and so this is very significant for a state like louisiana and, by the way, their very same companies that fabricate offshore oil platforms and service them can also fabricate offshore wind platforms and serve them too and they are already doing it. the block island wind project in the northeast we had louisiana people up there applying their experience in their know how to get that done and we can develop these things simultaneously but if you pulled the rug out from under the traditional oil and gas to abruptly and the pause lasts for too long than that
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transition is not going to be seamless but haphazard and we will hurt too many people in the state economy in the process. >> thank you. we certainly share those concerns as well as our borders. ms. lefton, as we all are very aware of the gulf of mexico oil and gas leasing it is just under attack from the biden administration in my opinion and the moratorium and we've discussed the studies and the api study which was performed the fallout of the long-term moratoriums of oil and natural gas productions but as it turns out my state is gravy affected and as i've already mentioned at least 2000 jobs under a four year moratorium in more than 4000 obviously under an eight year moratorium and that is just in mississippi alone and 157,000 jobs affected in a four year moratorium but giving the detrimental impact that this
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pause is causing to our state and how do you view the gulf of mexico in terms of american oil and gas production now and in the future and when do you think the administration should lift this? >> senator, thank you for the question. first, let me say that we do, of course, share the goal of supporting jobs and supporting american jobs. no, it is first perhaps important to note that there is a little more of a nonstory here and that is that we are actually seen a decline of jobs in oil and gas industry over the years and in the past four years in particular, in fact, we seen a decline in jobs. it's really important that we think about what is our opportunities then going forward. governor edwards just spoke to one of those which is how can we help transition communities to support new and growing industries like offshore winds. just recently we announced the
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wind project which will create 3600 jobs and i'm hopeful we can build the supply chain that will support businesses in the gulf and other places that know how to do energy development. the last thing i will say, of course senator, we are working quickly on the review and we also acknowledge that there is quite a bit of production that continued and, as i stated earlier, the fact 55% of acreage under lease currently we don't even have an expiration plan for and only 80% of the lease, of the acreage under lease is actually producing at this time. so, i think there is not only plenty of opportunities to continue to have robust production in the golf but also a great opportunity to create new jobs in the future. >> you don't have a timeframe of when you think that this freeze should be lifted? >> most certainly we will see the outcome of the interim report and in the early summer time and we will continue to drive towards an expeditious position at that point.
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>> thank you. >> senator murkowski. >> chairman, thank you to our witnesses and thank you for being here for your testimony and i appreciate it. this is so much here and i had a conversation with senator cassie coming in that it is sometimes astounds me to think about the resources that we have as a nation, our opportunities to not only provide for an economy and jobs and resources that our nation needs and our friends and allies want and yet, sometimes we put policies that just is handcuffed us and our ability to do much of anything. and we heard some of those matters discussed before this committee and just the past couple of months and this left -- i want to begin with you
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back in november under the previous administration in the apartment of interior announced a proposal to propose the arctic rule with regards to offshore development in both -- and the beaufort and the biden administration has withdrawn this proposal. the act of the matter is that the 2020 rules and the proposed 2020 rules were pretty collaborative and open process building on years of data, best practices, operating the arctic conditions and yet the administration comes in and in relatively short order, a matter of months, with trying to understand if it was really any process or any level of outreach to stakeholders by the departments between the times that the new administration came
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in and the time the proposed rule was rescinded, you are moving beyond the process, the efficiencies, the workplace safety improvements that again, were built after years of research and data of operating within the region. as is one who, again with senator daines, we want people to state focused on the data in the science. it is difficult to understand how the administration can come in and basically throw that all away in a very quick, very abbreviated process and say nope. we're not going to go there. can you speak to that very briefly? >> senator, thank you for the question. i really appreciate you. i will say that what we saw was the arctic rule was that really it was an opportunity or i would say the motivation for the proposed article from the
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previous administration was to streamline in the process and we look at the previous arctic rule which remains in place today and we see that there are very appropriate protections that are in place and in that rule therefore, we sought to withdraw the arctic rule proposed by the previous administration to ensure the previous one remains in place. >> is it fair to say that the department continues to support the development of alaska's offshore oil and gas resources? >> there are, interestingly unfolding in the arctic and that production of course can continue with those leaseholders and there is nothing that is preventing that exploration now. >> will, in fairness we're not doing much in the north slope when it comes to our offshore and i hope that you know that. >> i am aware of the lease holdings currently, yes. >> yes, it is not as if we have a lot of activity going on there.
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i would like to ask about the five-year plan. back in 2018 secretary announced a plan to open 90% of the ocs to oil and gas leasing and rejected time horizon was approximately 2019-2024 and i was one of those members of congress who supported that plan, the plan included 19 proposed lease sales in the state of alaska. can you share with the committee with apartment plans are for offshore oil and gas development in alaska? connect certainly. of course, as you noted senator the previous administration did not complete the plan and they had put out draft proposed plan and notice of i'm sorry, problematic environmental impact statement so at this time as we continue to do the review of our oil and gas programs that will certainly inform the program
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going forward which we certainly do intend to develop and are glad to continue the conversation with you as that occurs. >> last question, mr. chairman, if i may. a lot of discussion last year about what this committee was able to advance with permanent reauthorization of the land and water conservation fund. i think we have recognized the benefits that have come through the great american outdoors act and i have concerns about the mandatory funding for lw cs, including how we pay for it but we all recognize lw cf derives from oil and gas royalties but we're looking at and the administration now that is not very enthusiastic about development on our public lands so, as interior is reviewing the oil and gas program is it considering the impact to l wcs and the other conservation that
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exist out there if we royalties from oil and gas are either no longer available or are starting to decline because, believe you me, we are using that money and we will spend these for these conservation projects but if the administration is looking at that and the impact of the policies that they are talking about today, when you are pausing this kind of activity and you are going in a different direction than it is not consistent with the efforts that you would like to make on the conversations i'd been asked certainly, first i deeply appreciate the question with respect to lw cf and the goals that funded such critical conservation dollars for the nation and highly value the great work that this committee and others did to secure that. as we continue with the review undoubtedly we need to ensure that we are looking at revenues for l wcs for all those things that are out there. as i stated before as you well no, senator, and as you said
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well, the maturity of those funds for lw cf come from royalties. as we continue to see production which we expect that we will, we expect that we will see continued production on our public lands and waters for many years to come and there are many existing leases. we do expect that lw cf will continue to be supported but it is undoubtedly something that we should continue to look at together and i appreciate you raising the question. >> chairman, thank you. >> thank you, senator murkowski. senator hicken looper is on from his office. >> i am on. thank you all for the panelists for really illuminating session. i appreciate you all taken the time to come down here, especially as a former governor i appreciate governor edwards, you've taken the time out and i know how busy you are and i appreciate your comments very much. you have committed your state to achieving net carbon, net zero carbon by 2050 and as you said
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in her testimony this will require significant investment in renewables, electric vehicles and other innovative options but we will also, we need to address admissions and other industries that are well, harder to innovate. i think we need to look at both sides of the ledger and in reducing emissions in the first place, as well as the negative emissions, technology like carbon capture or direct air capture. i wanted to hear your perspective on this and what your state is doing on carbon capture and how can congress do a better job of supporting those efforts. >> thank you, so much, senator hicken looper. first of all, you have already done a lot with the 45q tax credit around carbon capture and sequestration and i think you may have some more legislation you are considering that would make that more attractive for entities to invest.
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louisiana has tremendous potential for carbon capture and the reason is we are the only state in the nation where the largest portion of our co2 emissions do not come from power generation but come from refinery and manufacturing. it is easier to capture in that environment. we also have the pipeline density to transport the carbon once it is captured and the geological formations underground to store it for hundreds or thousands of years. we are already seeing investment come into louisiana around carbon capture and sequestration and so i think, your point is exactly right. that is something worth pursuing in a robust way right now. i mentioned in my opening statement the most recent project where we are going to in caldwell parish, louisiana we find diesel out of pinetree waste and capture the carbon that is emitted in that refining process, sequester it and
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geological formation that are underground in the immediate vicinity of the refinery. that is the wave of the future. we are moving in that direction and that is just one example. there are many others but i think your point is exactly right. we need to see where the direct capture is something that is feasible in louisiana as well and that is something that we are looking at, senator. what the congress can do is continue to make sure that the business plan works and the 45q tax credit i think is the linchpin for that. >> great. on the same direction that obviously we all agree that we need to reduce carbon emissions dramatically. in colorado, especially on the west side of the state we are economically tied to fossil fuel extraction, jobs and people's
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livelihoods. i know that is true also in louisiana. we need to look at the greater good for all the individuals that are effected during this transition. i wanted to hear some of your perspectives on how you are addressing fossil fuel dependent communities, as we move into a modern energy economy. >> well, that is a great question and it is something that we are working on by making sure, as i mentioned earlier, that those individuals, those companies currently working to fabricate, for example, offshore oil platforms that they actually can engage in the fabrication of offshore wind platforms and service companies and vestibules can be engaged in the same types of services just for windmills rather than for drilling rigs. but that is the sort of thing
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that we can do in louisiana and over the transition in and orderly way to devote more and more resources to building up the new energy industry that we believe is coming and, by the way, i don't we will ever get totally away from oil and gas. i don't think that works and a lot of people have no idea what it is that we manufacture out of natural gas, for example for everything from fertilizer to bottle so we will never get totally away from it. that manufacturing will have to continue but those are the things we are doing. when general motors and says that by 2035 it will not produce another non- electric vehicle that is a serious queue for a state like louisiana that you better broaden your horizons and start doing things in a different way and certainly that is what we will do in louisiana. >> i appreciate that. i'm out of time and i'm sorry i'm not there in person just
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because well, i respect you guys so much and miss lefton, at some point maybe in a later date i would love to get caught up on your ideas have how we can improve this citing and permitting for these offshore wind systems that you describe in your testimony. we will put that down the road and i'm out of time but thank you all for your efforts. i yield back. >> thank you very much, senator. a number of members have requested a second round of questions and i will start just with one from miss lefton. during her confirmation hearing now secretary holland committed to being transparent and engaging with all stakeholders. the department has not contacted me at all or my staff to discuss the leasing program and the apartment is not responded to a letter that i sent on march 22 and is now may 13 and i requested answers at the time on the federal leasing moratorium. even the bureau of land
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management's website that publicly tracks the applications for permits to drill has been off-line now for three weeks. what does the bureau need to take in terms of the next steps to reinstate the federal oil and gas leasing program? >> senator, very much appreciate the question in your input, of course. first, i want to talk a little bit about some of the input that we have received on march 205. we held a forum in the department where we heard from industry representative from labor representatives, communities, environmental justice communities, tribal nations and other stakeholders about our oil and gas program which i thought was very informative and helpful forum where we learned quite a bit. additionally we provided the opportunity for the public at large to provide written feedback and we received apps over 100,000 comments during that time. in addition to that we've consulted with governors and talk to members of congress and
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we've had many conversations with stakeholders and with respect to your letter, senator, and your input i am certain we have taken into consideration and i am sure we will follow-up with you and as we continue to move toward this review and come out within interim report in the early summer time we welcome of course, summarize the feedback we've heard from our partners and our stakeholders alike. >> as you talk about summarizing the feedback really in the interest of transparency and accountability is the department will make the comments submitted by that march 25 virtual forum? will you make those public? >> yes. >> not just a summary but make the comments public? >> correct. >> thank you. senator cassidy. >> thank you, mr. chairman. several things. first, it's been brought to my attention that per federal law any revenue derived that distributes to the four states and the golf house to be used
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for hurricane protection or to mitigate damages caused by oil and gas development. senator mansions opening questions to my governor suggested that perhaps some of the other states had not done so. the only thing we've done additionally in louisiana, we codified it in our state constitution but this money and all those four states is being used for that environmental purpose. i also want to point that out. secondly, we speak of -- well, let me ask you. the governor mentioned that a man for oil and gas will remain. could you briefly tell us what independent statements and nothing against my democratic governor because we occasionally disagree but what independent analysis states that there will be at least a growing demand for oil worldwide? >> yeah, i can speak to that. first of all i would like to say we been in business 22 years and we started 75 million barrels of oil was being used in this world
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every day and in 2019 is close to 100 million barrels of oil a day so there's been a steady and rapid increase in demand from other countries like china and india and others. the iea has projected that it will be 104, 105 in the next five years and we will continue to set all-time records. i may or may not be the case but i think it is but we may be wrong but maybe it will go down and there's a lot of projections out there. i will tell you the best place we can get oil is from the u.s. gulf of mexico. because of the economic security and because it puts people to work and because of the generator that fund these wonderful programs and most importantly i think because in his lower house gasses that we regulate our own oil. i got a second i would like to reference a letter that was sent three years ago. oil prices were about the same and for democratic senator sent a letter to president trump and asked him to pressure opec to increase production because it was having an impact on or have
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an on the domestic economic conditions. a summarize by saying the current run-up in world war prices is effectively a tax on every american families discretionary budget, except that the money goes to opec, cartel rather than to the u.s. treasury adding to the constituents pocketbook concerns is their understanding that our nation's continued dependence on oil is at the heart of many of our nation's greatest economic environmental and natural security challenges. that is exactly right. that is without question. that is why we need to drill more oil wells in the gulf of mexico spirit let me also point out it is not just oil and gas use for transportation and for propulsion but everything i'm touching right now is made as a synthetic made from an oil or gas products. the plastic, the synthetics, the cards were sitting upon. if someone was number of peta and did not want to wear leather, there's something there wearing derived from oil and gas. it's an essential nature. governor, you mentioned the gm
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saying that they will not use batteries by some date in the future. mr. chairman, i would like to summit for the record both a international energy agency report on the role of critical minerals and clean energy transition and i would also like to have an editorial from today's wall street journal written by mark mills, who came here without -- >> without objection. >> in this point out that you are going to mind the critical minerals to make these batteries and that the intensity of environmental involved with critical minerals and the threat to our national security is quite large because one, the united states has almost no footprint where these are produced and being produced in nations with poor governance for independent evaluations which uses a lot of natural resources
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to produce in an environmentally shall we say destructive way. as for the small footprint and in which it is typically governed at least in the gulf of mexico by environmental standards is quite strong. we're just replacing one set of mining procedures where with another set of mining procedures, one set of environmental concerns with another much larger set of environmental concerns and secure national security for insecure national security because we are dependent upon other nations. that is from iea implied, stated but impure crack but is clearly spelled out in this editorial which is why i raise it. but see if there's one more thing i want to raise good with that, mr. president, i'll back, mr. chairman. >> senator king and i apologize for skipping you one minute ago. >> not at all. always a pleasure to listen to senator cassidy on any topic.
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ms. lefton, is boom considering creating like the five-year planning process that you had for offshore oil and gas or offshore winds so that we can have a more protectable permitting and development process? >> thank you, senator. as i mentioned earlier executive order 14008 directed that the department of interior look at our processes for citing renewable energy and of course, that renewable energy that resource is offshore wind. boom has been looking internally at our procedures as well as coordinating with other federal agencies really within effort of creating greater certainty for the industry, for travel governments, for other ocean users like the commercial fishing industry so that as we have a path we can ensure that we have a transparent process that has a robust engagement from those many partners. as part of that is certainly a
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goal of mine that we have a more certain leasing process in which we can demonstrate what our featured lease sales will be in various different wind energy areas. >> thank you. thank you, mr. chairman smacked thank you, senator king. senator highsmith? thank you, senator barrasso. congress enacted the outer continental shelf lands act primarily to facilitate the federal government leasing of its offshore mineral resources and energy resources. in this law congress stated expressly that offshore resources should be made available for expedient and offshore resources and develop it. ms. lefton, what assurances will you give us that they will not impose stipulations that might new the economic except a bowl and therefore unavailable for develop and contrary to clear congressional intent.
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>> certainly, as our governing statute that guys are decisions and we take it seriously as i said in my opening to develop our outer continental shelf resources environmentally and sustainable way so when we are approaching our work whether it is marine minerals, conventional oil gas, renewable energy, no matter what the resource we certainly ensure that is guided by science and also guided by a balance of our response abilities and we will absolutely commit to continuing to do that. >> thank you. that apartment of interior goes through environmental analysis through the lease can even be awarded. offshore oil and gas facilities maintain one of the smallest environmental footprints compared to onshore facilities and other industries, including transportation because the united states has strict regulations and the advancements
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in technology through industry continued to reduce the environmental footprint from offshore production so why should we stop progress on being energy independent and once again rely on foreign production that are both unsafe and less environmental conscience and i will start with you and ask all to respond. >> as you probably heard from a test many previous the i totally agree with that position and you are right that these centralized facilities reduce the footprint and we can drill wells off one facility that the radius of 3 miles or 4 miles but they could hook up a well that is 30 or 40 or 50 miles away and bring that into that central facility. is that small footprint that allows us to manage our greenhouse gases. >> that's a great point about the consolidation of the different facilities for the numbers that are out there over the years and they've definitely shrunk about 100, 150 each year being just commissioned offshore
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and back in the day there were about 5500 facilities and right now there are less than 1800 that are active offshore so just the decreasing of the footprint of what you physically see on the surface is one of the ways and with technology over the years it's allowed us to minimize the amount of emissions that are occurring and then we continue to look at ways of how we can do that safely as well. >> thank you, senator for the question. obviously, getting back to what you just as i don't think we should move in that direction that would cause us to move away from exploration and production in the golf in a way that would undermine our national security and our energy independence and damage the environment. i mean, i just think it's very clear that if you are do that there will be more not less greenhouse gas emissions and the proposition that we will clean up the environment by potentially not continuing to
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produce and the golf i think is ill-founded and so we certainly should not do that. >> ms. lefton. >> it is such a thoughtful question, senator. as i think about my response may be serving globally we know climate change is a climate crisis before us now and in order for us to combat climate change and in order to reduce risk in states like louisiana and many others that we talked about today we know we need to transition away from oil and gas. having said that, that is something that needs to be done to reduce demand and as we as a country reduce the demand for oil and gas we can then of course, fight climate change. as a think about our continued reliance on oil and gas, you know, i think we have already acknowledged her today that there is a lot of existing acreage under lease in the gulf of mexico and also i don't want to speak for my colleagues but also in our federal lands as
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well and so i expect that we will see continued exploration of those resources for years to come with what is already out there. i think over time as we transition we have a really important response ability to make sure were doing this to fight climate change and i want to note that we talk about energy security and i think another form of energy security and domestic is things like offshore winds. the majority of the people in the united states live in coastal cities and less produce power that's near those people and ensure that we are improving our energy security as a nation. >> thank you, senator murkowski. >> thank you, mr. chairman. when i think about energy security, to me it really is this all of the above and so yes, wind generation should be part of it but again, i don't
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think we can put our selves in a position where we say it is only those renewable sources that go into that energy security bucket and having the resources that we have been talking about here at the committee is so critically important and a recognition that oil will be part of our economy, our global economy for years generations to come and it may just look different how we utilize it. but, i think our challenge here is to figure out all right, if we are going to continue to need this resource as humans, how will we be able to access it in the most environmentally responsible way? in a way that really works to reduce those emissions and the technologies that we have been focused on as a committee and i
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think our exciting and i don't think we should put ourselves in this position that in order to get to low carbon and no carbon future that oil is no longer part of our reality. i want to ask one question to you, ms. lefton and this relates to the 30 by 30 proposal and i walked into the room when you were responding to a question from senator daines. so, i may be touching on the same issue and i'm not sure but i'm a little concerned about the approach that the administration has taken with this 30 by 30 and it sounds but a great and we all want to work to conserve our lands and our waters but so much depends on what it is that we are defining in the standards there and i have not been able to get a lot of details in terms of what the administration would
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consider conservation status, where the conservation would take place and in my state we've got more federal lands than any other state in the country, much of it is in a protected or conserved status of some sort and when we passed -- back in 1981 of the most comprehensive conservation laws ever put over 100 million acres, nearly turning 5% of alaska's entire landmass into new or expanded conservation units and so on the landside alaskans feel pretty strongly that we have given, if you will, at the office there but we also have our many of our federal water surrounding the state that are also included in
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some level of status so do you, can you provide to me any additional information on additional waters that the administration might seek to conserve as you look at the 30 by 30 goal? have those been identified yet? >> thank you, senator. i will say with respect to the broader 30 by 30 initiatives certainly acknowledge just really being incredible conservation efforts of your state in many states in the west but in particular in alaska unjust thinkable work you have done to conserve your lands and waters. i think what we saw excitingly as part of the 30 by 30 initiative is ensuring that we are sort of looking inclusively about what conservation means and capturing appropriately the working lands and other critical
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pieces there. with respect to federal waters, you know, i expect that as we continue to look at what the nature of our programs look like there will be a process for identifying those at this time. certainly from bones perspective we have not advanced additional productions or conservation for federal but i would be glad to look into it with more detail and circle back to you, senator. >> i think it would be helpful to understand how the administration is defining conservation and in terms of engagement i would, i would urge you to be more engaged, more open when you say you will throughout a compliment there saying what alaskans have done to conserve our lands and in fairness much of what we have in protected status is not because alaskans chose it but because the federal government did it
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without consultation and without consultation, the native people on these lands who have now been denied access and it is a reality to us that we come from a pretty special place and we recognize that and we believe pretty strongly that we are some of us of our mental stewards out there because we choose to live in this place. and we want to raise our families and work there so we want to take good care of it but we also don't want to be in a situation where our ability to live, to work, to raise our families are denied because we have no economic opportunities. if you are the strong fishing family out there than you want to know that you're waters are clean and you want to note that there is sustainably managed trees but you want to be able to pursue that livelihood and so when we are talking about conservation my fishermen now
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are a little bit worried about what this 30 by 30 proposal might be. there are some of the hardest core conservationists that you will have out there but they want the ability to still be able to access our resources and so, not coming from the golf but knowing that you've got a lot of water down there, a little warmer than our water but again, you have families in louisiana that want to be able to live in this area, have good jobs, be good stewards but also be able to access the resources that we have had, ever mindful of our environmental response ability. >> esther chairman, i've gone well over my time, thank you. >> thank you, senator murkowski. senator hyde smith, any more questions? >> i just want to say thank you to the panels. we are all trying to get to a good place. we are all trying to get to a reasonable place and i thank you
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for your efforts and we are conscience of sustainability and the economic impact of the environmental impact here and it's pretty tough a lot of times to come before a committee here and you've all done so well and i just want you to know i appreciate you continuing to be a part of it. thank you. >> thank you, senator hyde smith. thank you to all the witnesses for joining this morning and for this discussion. members, some of the members had to leave or weren't able to ask other questions so they will have until the close of business tomorrow to some additional questions for the record. thanks again for being here and the committee stands adjourned. [background noises]
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the senate is in at 3:00 o'clock to take up the endless frontier act. all the rising $110 billion for technology research to help the u.s. compete with china. a procedural vote is set for 5:30 p.m. eastern paid the expect and continue work on that there the week as well as more of president biden's nominees. you can watch coverage at the senate live on c-span2. >> i want to share with you a headline from the associated press, the house devotes soon on bills to protect the capital after january the sixth here are some of the details courtesy of the ap. the house excited to vote this week on two bills aimed at preventing more attacks on the is capital with one seeking to establish a 911


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