API welcomes state oil revenue plan

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WASHINGTON, March 21 (UPI) -- The U.S. energy industry expects revenue for oil and natural gas operations to contribute to an economic renaissance, the American Petroleum Institute said.

API Upstream Director Erik Milito welcomed legislation that would ensure U.S. states that are rich in oil and gas get their fair share of revenues.

"We are at the forefront of an energy renaissance and we have an opportunity to lead the world on energy by investing in America," Milito said in a statement. "Offshore revenue sharing should be an important element of a comprehensive national energy plan."

U.S Sens. Lisa Murkowski, R-Alaska, and Mary Landrieu, D-La., introduced the Fixing America's Inequities with Revenues act that would give 27.5 of revenue from offshore oil, gas and renewable to coastal states. Another 10 percent would be added if the states establish low-carbon funds.

Murkowski issued published a 121-page energy blueprint last month. Having the United States become independent from Middle East oil by 2020 through more domestic drilling and a broader definition of clean energy were among her top proposals.

The Natural Resources Defense Council said Murkowski's blueprint read like a "cut-and-paste job" from the fossil fuels industry.

API says expanding offshore campaigns could create 1 million new jobs and generate $127 billion in government revenue in less than 10 years.