The United States Energy Secretary is in Louisiana on Tuesday, where he announced a loan for a project that is expected to boost oil and natural gas production across the Gulf Coast.
U.S. Energy Secretary Chris Wright was in Luling Tuesday, where he announced a $480 million loan for Arena Energy’s Project Elkhorn.
The project is expected to increase oil and natural gas production across the Gulf Coast shelf.
According to Wright, the project will modernize 22 offshore platforms off the coast of Louisiana and, at peak production, is expected to add up to 38,600 barrels of oil per day and up to 77 million cubic feet of natural gas per day to U.S. energy production.
This project is the first closed loan by the Energy Department supporting domestic oil and natural gas production.
According to Wright, the loan was made possible by President Trump’s Working Families Tax Cut and the Department of Energy’s commitment to advancing American energy.
“The United States is the world’s largest producer and exporter of oil and natural gas, and thanks to President Trump, American energy production will continue to grow,” said Secretary Wright in an issued statement. “Project Elkhorn will increase oil production by up to 38,600 barrels per day and create thousands of jobs. By providing financing for projects like Project Elkhorn, the Energy Department is expanding domestic production and strengthening our energy security to power American prosperity for decades to come.”
The Department of Energy said investing in projects like this will ultimately lower costs for all Americans.
Wright was joined by Under Secretary of Energy Kyle Haustveit; Dustin Davidson, secretary of the Louisiana Department of Conservation and Energy; Arena Energy CEO Michael J. Minarovic; and additional speakers.
About Arena Energy:
Arena Energy currently produces approximately 30,000 barrels of oil per day offshore in the Gulf of America. Project Elkhorn will modernize existing offshore infrastructure and expand production capacity — adding approximately 125 million barrels of oil and 250 billion cubic feet of natural gas to U.S. energy production over the life of the project. The project will create 2,400 construction-related jobs and 400 operations jobs in one of the nation’s most important offshore energy corridors.
READ MORE:United States Energy Secretary announces loan to expand energy production across the Gulf
