API: Recent federal court decisions could imperil US GoM oil, gas operations

**Imperiling U.S. Gulf of Mexico Oil and Gas Operations: The Impact of Recent Federal Court Decisions**

The American Petroleum Institute (API) has sounded the alarm regarding a recent federal court decision that threatens to significantly disrupt oil and gas operations in the U.S. Gulf of Mexico. On August 19, a U.S. District Court judge in Maryland vacated the National Marine Fisheries Service’s (NMFS) Biological Opinion (BiOp) for oil and gas drilling in the Gulf of Mexico, citing failures to adequately protect endangered species such as the Rice’s whale.

The court’s ruling mandates that the NMFS will allow the current BiOp to lapse by December 20, 2024, if a revised opinion is not completed by then. This deadline is particularly problematic given that the NMFS expects to finish the new BiOp only by early spring 2025. The Bureau of Ocean Energy Management (BOEM) has also expressed concern about the potential workload surge following the lapse of the current BiOp, stating that thousands of individual consultation requests for daily Gulf activities could divert valuable agency time, hindering the ability to finalize a new BiOp.

### Economic and Strategic Implications

U.S. Gulf of Mexico production accounts for approximately 15% of total U.S. crude oil production, representing nearly 2 million barrels per day. This region is not only crucial for energy security but also supports hundreds of thousands of jobs and generates billions of dollars in state and local revenue. In 2023 alone, the Gulf of Mexico oil and gas industry supported over 412,000 jobs, contributed over $34.3 billion to the U.S. gross domestic product, and generated $6.1 billion in federal government revenue.

The API has emphasized that a halt or significant slowdown in Gulf of Mexico operations could have far-reaching economic consequences. Constrained production in this region could be replaced by higher carbon-intensity barrels from elsewhere in the

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