API releases new estimates of OCS oil and gas benefits by region
The American Petroleum Institute released new studies showing potential economic benefits to states and communities along the Atlantic, Pacific, Alaskan, and eastern Gulf of Mexico portions of the US Outer Continental Shelf if oil and gas resources are developed there.
“As today marks the end of the Bureau of Ocean Energy Management’s public comment period for the Department of the Interior’s 5-year national OCS program, it is important to reiterate that Interior’s plan is a good first step in the right direction of continuing America’s energy renaissance,” API Upstream Director Erik Milito said on Mar. 9.
Specifically, the API-commissioned studies by Calash and Northern Economics projected that the US could see notable gains over 20 years of:
• A projected $260 billion total cumulative spending along the Atlantic OCS, including $22 billion/year by the oil and gas industry after initial lease sales, supporting 265,000 jobs nationwide.
• An estimated $160 billion total cumulative spending along the Pacific OCS, including $25 billion/year by industry after initial lease sales, supporting 300,000 jobs.
• A projected $118 billion total cumulative spending in the eastern gulf, including $14 billion/year by industry after initial lease sales, supporting 165,000 jobs.
• An estimated $53.4 billion total cumulative spending on Alaska’s portion of the OCS, including an average $2 billion/year by industry, supporting 13,500 jobs.
“Ultimately, the studies confirmed what the oil and natural gas industry has supported over the years: Opening the currently restricted OCS areas could increase economic benefits not only specifically to the coastal regions near offshore development, but also nationally as well,” Milito said.
Meanwhile, the National Ocean Industries Association submitted comments strongly encouraging the US Department of the Interior to proceed with lease sale planning in all 25 areas proposed in the Draft Proposed 2019-24 OCS Leasing Program. It specifically supports the annual offering of all acreage in the central and western gulf and the opening of the eastern gulf as soon as the current moratorium expires.
NOIA also recommended conducting lease sales early in the plan in the Beaufort and Chukchi seas as well as in the Mid-Atlantic, South Atlantic, and North Atlantic and southern California planning areas.
“This is the first draft proposed offshore leasing program in nearly two generations to look at virtually all federal offshore lands,” NOIA Pres. Randall B. Luthi said.
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.
