AOGA Denounces Ban of Oil and Gas Leasing on Federal Lands and Waters
Stopping oil and gas leases will slow America’s economic recovery, jeopardize jobs
ANCHORAGE – January 27, 2021– The Alaska Oil and Gas Association (AOGA) reacted today with concern at the announcement by the Biden Administration of a “pause” on all oil and natural gas leases.
“Today’s announcement is a ban on future oil and gas leasing on federal land for an undetermined period of time. This unilateral decision made by the Biden Administration will jeopardize thousands of American jobs, including jobs in Alaska,” said Kara Moriarty, AOGA President and CEO. “It will hurt Alaska’s struggling economy and future potential by piling on even more uncertainty in an already anemic economic landscape. Pausing oil and gas leasing, for an indefinite amount of time,
and likely adding additional challenges to oil and gas development is counterproductive when demand for traditional fuels will remain strong for the next several decades. This decision will not stop oil and gas development but could easily shift development to other countries that do not have the same environmental standards as the US.”
Oil production serves as Alaska’s economic engine, accounting for one-fourth of all jobs in the state, and providing more than $2 billion in annual revenue to state and local governments. Historically low oil prices, an international price war, and operational challenges due to COVID-19 hammered the oil and gas industry in 2020.
“This action will not aid in the Administration’s worthy goal of creating more American jobs,” said Moriarty. “We strongly urge the Biden Administration to revisit these recent decisions, aimed as a direct attack on the oil and gas industry, and instead work with stakeholders in the spirit of cooperation and unity that he shared at the Inaugural Address last week. The oil and gas industry can be a strong partner with the federal government, Alaska Native communities and corporations,
union members, and contractors to strengthen economies, provide for future generations, and create solutions to address the issue of climate change.”
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AOGA is a professional trade association whose mission is to foster the long-term viability of the oil and gas industry in Alaska for the benefit of all Alaskans. More information about the organization can be found at www.aoga.org, on AOGA) and Instagram (@alaskaoilgasassociation).