Energy Department closes $480 million loan for offshore oil
The U.S. Department of Energy’s Office of Energy Dominance Financing on Tuesday closed a $480 million loan for Arena Energy’s Project Elkhorn to expand oil and natural gas production on the Gulf of America shelf, the department said.
The project will upgrade 22 offshore platforms off the coast of Louisiana and is expected at peak to contribute as much as 38,600 barrels of oil a day and up to 77 million cubic feet of natural gas a day to U.S. output, according to the department. DOE said this is its first closed loan to support domestic oil and natural gas production. The department said the announcement was made possible by President Donald Trump’s Working Families Tax Cut.
U.S. Secretary of Energy Chris Wright said Project Elkhorn will “increase oil production by up to 38,600 barrels per day and create thousands of jobs.” He said financing projects like Elkhorn will strengthen energy security.
Arena Energy currently pumps roughly 30,000 barrels of oil a day from the Gulf of America, the department said. Over the life of the project, DOE said Elkhorn is projected to deliver about 125 million barrels of oil and 250 billion cubic feet of natural gas to U.S. output. The department said the project will create 2,400 construction-related jobs and 400 operations jobs.
EDF Director Gregory A. Beard said the office is “putting existing energy infrastructure back to work for the American people.” He said the project will expand domestic production and generate returns for taxpayers.
DOE said its financing through the Office of Energy Dominance Financing is aimed at increasing domestic production, strengthening U.S. energy security, and lowering costs while managing taxpayer funds.
