THE WOODLANDS, TEXAS, May 13, 2021 — Arena Energy, LLC (“Arena”), a leading independent oil and gas exploration company focused on the Gulf of Mexico Shelf, today testified in front of the Senate Energy and Natural Resources Committee hearing examining offshore energy development in federal waters and leasing under the Outer Continental Shelf Lands Act.
Arena Co-Founder and CEO Mike Minarovic provided both oral and written testimony encouraging Senators to support American oil and gas production in the U.S. Gulf of Mexico as part of the solution to maintaining affordable energy prices for American consumers, protecting our energy and national security, and addressing climate change. A portion of his testimony is below. “
The U.S. Gulf of Mexico is the environmental crown jewel of domestic production. Ceding the advantages of U.S. domestic production will only ensure these resources are developed elsewhere—possibly to our geopolitical detriment, at an economic loss of royalties and jobs, and most certainly at a higher environmental cost,” Minarovic testified. “The temporary ‘pause’ on federal lease sales for public lands and federal waters announced in January 2021—recently extended until July 2021 at the earliest—has had an immediate chilling effect on offshore oil and natural gas producers and capital markets. Absent an end date, there is growing concern among offshore oil and gas stakeholders that the temporary ‘pause’ will be extended indefinitely, in effect becoming a de facto permanent ban on federal offshore lease sales. I believe a further pause or ban on lease sales is misguided, because (1) it jeopardizes a significant strategic asset—namely, U.S. Gulf of Mexico energy production, and (2) that strategic asset is one of the least carbon-intensive sources of oil and natural gas currently available.”
Minarovic added: “The Energy Information Agency predicts we will need more forms of all energy in the future, projecting worldwide energy consumption to grow by 50% by 2050. The world population is growing, and growth is greatest in regions of the world with higher rates of poverty. It is beyond refute that access to affordable energy is a fundamental catalyst for raising standards of living and improving quality of life. Oil and natural gas will remain a necessary and life-sustaining fuel source for decades to come, even as we transition to less carbon-intensive sources over the long term.”
Click here to read Minarovic’s full written testimony.
Click here to watch a recording of the hearing.
About Arena Energy
Arena Energy, LLC is an upstream exploration and production company focused on the Gulf of Mexico Shelf. Arena Energy was founded in 1999 on the belief that mature producing areas of the Gulf of Mexico Shelf still held vast potential—and that with the right technology, talented oil and gas finders could unlock these drilling opportunities. Today, that vision has been realized many times over. Since its founding, Arena has grown into one of the largest private offshore oil and natural gas companies, having invested more than $4 billion of capital in the Gulf of Mexico, paid $1.4 billion in royalties to the federal government, and decommissioned over 300 wells and 45 platforms and other structures. Arena takes pride in safely and responsibly developing the energy that powers the United States and the world.
Contact Information:
Kevin Bruce
Vice President – Government Affairs
kbruce@arenaoffshore.com
281-210-0536