Sept 9 (Reuters) - A major U.S. oil and gas trade group on Monday warned that energy production in the Gulf of Mexico could stop if the Commerce Department does not act quickly to publish a new assessment of how endangered species should be protected in the region.

WHY IT'S IMPORTANT

A court ruling by a federal judge last month threw out a National Marine Fisheries Service "biological opinion" that is legally necessary for oil and gas exploration and drilling to be conducted.

The judge gave NMFS, a division of the Commerce Department, until Dec. 20 to complete a new opinion.

A delay could disrupt a critical source of U.S. oil and gas, the American Petroleum Institute said. The group's president, Mike Sommers, sent a letter to Commerce Secretary Gina Raimondo on Sept. 6 calling for help, API said.

BY THE NUMBERS

The Gulf of Mexico accounts for about 15% of all domestic oil production, according to federal data.

The region also supports about 412,000 jobs and generates $6.1 billion in federal revenue, API said.

KEY QUOTE

"It is in the best interest of U.S. consumers, the federal government, and oil and gas producers to partner to resolve this issue," Sommers wrote to Raimondo. "We look forward to working with the department and its agencies to minimize any disruptions and find a solution."

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https://www.reuters.com/markets/commodities/gulf-mexico-oil-production-could-stall-after-court-ruling-industry-warns-2024-09-09/