“Unless the Federal Government provides meaningful relief to the independent offshore oil and gas companies in the next 30 days, the continued viability of the industry will be in serious jeopardy. . . . The loss of this important industry would have a devastating effect on Louisiana and would negatively impact the national security interests of the United States.”

WASHINGTON – Sens. John Kennedy (R-La.) and Bill Cassidy (R-La.) today asked President Donald Trump to direct the Secretary of the Interior to provide royalty relief to independent offshore oil and gas companies affected by the coronavirus pandemic and the oil battle between Saudi Arabia and Russia.

“We are writing to urge you to direct the Secretary of the Interior to take immediate and decisive action to provide relief to the independent offshore oil and gas companies who operate in the Gulf of Mexico. Unless the Federal Government provides meaningful relief to the independent offshore oil and gas companies in the next 30 days, the continued viability of the industry will be in serious jeopardy. . . . The loss of this important industry would have a devastating effect on Louisiana and would negatively impact the national security interests of the United States,” the senators wrote.

In addition to sustaining tens of thousands of jobs, independent oil and gas companies paid the federal government over $1.5 billion in royalties in 2018.

Kennedy and Cassidy also spoke recently with Interior Secretary Bernhardt to request that he temporarily suspend royalty payments from oil and gas producers to the federal government.

The letter is available here.