Houston Republic

WASHINGTON, D.C. – Today, the House Committee on Small Business Subcommittee on Rural Development, Energy, and Supply Chains convened a hearing to discuss the impact of burdensome energy regulations on small offshore energy producers. In his opening statement, Subcommittee Chairman Welsey Hunt emphasized the importance of supporting domestic energy production and the challenges faced by drillers and service providers.

"The Biden Administration’s war on domestic oil and gas production continues to impede American energy independence as they recklessly push radical environmental agendas at a time when the nation is facing historic energy," stated Chairman Hunt, who serves as the Chairman of the House Committee on Small Business Subcommittee on Rural Development, Energy, and Supply Chains.

Chairman Hunt highlighted the crucial role played by small businesses in the country's energy industry, particularly independent offshore oil and gas producers. He emphasized that domestic oil and gas production is the backbone of the economy, and its strength directly impacts the nation, its allies, and American families.

However, Hunt pointed out that regulatory hurdles and increasing taxes are negatively impacting independent oil and gas producers. He cited the example of the Bureau of Ocean Energy Management (BOEM) implementing a new rule in June that imposes capital reserve requirements for Outer Continental Shelf Oil and Gas Lessees and Grantees.

"These requirements, such as having an investment-grade credit rating, place additional burdens exclusively on smaller offshore oil and gas companies. The rule tips the scale in favor of large companies, as small businesses lack the same access to capital and credit," explained Chairman Hunt.

Another regulation discussed during the hearing was the National Oceanic and Atmospheric Administration's (NOAA) Rice's Whale rule. This rule imposes burdensome restrictions on offshore operators and significantly increases costs for producers in the Gulf.

"The Rice's Whale rule contains numerous anti-oil and gas provisions aimed at dismantling our country's offshore production based on a possible sighting almost a decade ago," Chairman Hunt stated.

Chairman Hunt also highlighted President Joe Biden's campaign promise to "end fossil fuels" and expressed concern that his administration is actively working towards fulfilling that promise. He emphasized that the transition to green energy is a myth and that the oil and gas industry is essential for achieving affordable and abundant clean energy in the future.

"These oppressive rules and regulations being forced upon our domestic oil and gas producers are crushing production, future investment, and the benefits that American consumers could enjoy if we were energy dominant," concluded Chairman Hunt.

For more information on the House Committee on Small Business Subcommittee on Rural Development, Energy, and Supply Chains, please visit https://smallbusiness.house.gov/.