Rep. Bill Cassidy (R-La.) urged Senate Energy and Natural Resources Committee Chairwoman Sen. Mary Landrieu (D-La.) on Friday to consider legislation that would lift the cap on offshore oil revenue sharing.
The Offshore Energy and Jobs Act would increase energy exploration and production on the outer continental shelf. The measure also includes an amendment authored by Cassidy that would increase the revenue-sharing cap imposed on gulf coast states under the Gulf of Mexico Energy Security Act (GOMESA Act).
GOMESA provides states along the Gulf of Mexico with 37.5 percent of revenue generated from offshore energy production and mandates a $500 million cap.
Louisiana would receive billions of dollars in additional revenue, Cassidy said, if Landrieu would use her position as chairwoman of the Senate Energy and Natural Resources Committee to consider Cassidy’s revenue-sharing amendment.
“Lifting the arbitrary dollar cap on offshore revenue will help enable the state of Louisiana to bring forward the value of this revenue stream to fund essential projects in the near term…,” Cassidy said.
The Offshore Energy and Jobs Act would promote job growth, increase Louisiana’s energy sector market access and provide “substantial” improvement to the offshore energy-sharing program by increasing coastal restoration and hurricane protection efforts, Cassidy said.
Cassidy urged Landrieu to advance the legislation at the committee level so that it can be brought to the Senate floor for a vote.