NOIA, API studies list benefits of more federal OCS leasing
Offshore oil and gas leasing in the eastern Gulf of Mexico and on the US Atlantic and Pacific coasts could create more than 838,000 American jobs and raise more than $200 billion in revenue for the government, according to recent studies released jointly by the National Ocean Industries Association and the American Petroleum Institute.
“The US oil and gas industry is already a major source of jobs, economic activity, revenue to state and federal governments, and affordable and reliable American energy for American consumers,” NOIA Pres. Randall B. Luthi told reporters during a Nov. 19 teleconference. “We can do much more of the same with more access to the OCS.”
“Polling shows that 70% of voters in this year’s midterm elections support offshore drilling, and 57% do not think the federal government does enough to encourage domestic oil and gas production,” said API Upstream Group Director Erik Milito, who also participated. “The next offshore leasing program is an opportunity for the Obama administration to let those voters know their voices are being heard.”
Quest Offshore Inc. conducted the studies. It did one of the Atlantic OCS which NOIA and API jointly released last year. All three areas are almost entirely off-limits now to oil and gas development, but could be included in the government’s next 5-year OCS program which the US Bureau of Ocean Energy Management has started to develop.
If federal leasing began in these areas in 2018, the studies show that by 2035:
• Pacific OCS development could create more than 330,000 jobs, spur nearly $140 billion in private sector spending, generate $81 billion in revenue to the government, contribute more than $28 billion/year to the US economy, and add more than 1.2 million boe/d in US energy production.
• Eastern Gulf of Mexico development could create nearly 230,000 jobs, spur $114.5 billion in private sector spending, generate $69.7 billion in revenue for the government, contribute over $18 billion/year to the US economy, and add nearly 1 million boe/d to US energy production.
• Atlantic OCS development could create nearly 280,000 jobs, spur $195 billion in private sector spending, generate $51 billion in revenue for the government, contribute up to $24 billion/year to the US economy, and add 1.3 million boe/d to US energy production.
In all three study areas, the studies said development by 2035 from leasing beginning in 2018 could spur nearly $449 billion in new private sector spending, and add more than 3.5 million boe/d to US energy production, in addition to creating more than 838,000 jobs and raising more than $200 billion in revenue for the government.
“None of the benefits shown in the studies can be realized without actual sales,” Luthi noted. “The key to tapping this amazing economic and energy potential is including lease sales in these areas in the 2017-22 OCS oil and gas leasing program.”
Contact Nick Snow at [email protected].
Nick Snow
NICK SNOW covered oil and gas in Washington for more than 30 years. He worked in several capacities for The Oil Daily and was founding editor of Petroleum Finance Week before joining OGJ as its Washington correspondent in September 2005 and becoming its full-time Washington editor in October 2007. He retired from OGJ in January 2020.
