New studies project that offshore energy development will significantly increase U.S. jobs, domestic spending, investments, and state revenues, API said last Friday.
According to the American Petroleum Institute, an oil and gas industry association, new economic studies show that opening the U.S. Outer Continental Shelf (OCS) to offshore oil and natural gas development would be an economic catalyst for the states.
API director of upstream and industry operations, Erik Milito, said: “The oil and natural gas industry is a major contributor to the American economy and helps meet America’s constantly increasing energy needs.
“With more than 94 percent of the total acreage in federal offshore waters currently inaccessible, opening the Outer Continental Shelf (OCS) to safe and responsible offshore energy development could further advance our energy renaissance – including more higher-paying jobs, investments in local communities, additional state revenue for public education and infrastructure, and long-term energy self-sufficiency.”
According to the four regional studies by Calash and Northern Economics which analyze the potential economic impact of oil and natural gas development in the OCS by region, the U.S. could see significant economic gains.
Namely, the Atlantic OCS has a projected $260 billion total cumulative spending over the twenty-year period and $22 billion spent per year by the oil and natural gas industry twenty years after initial lease sales. That means that nearly 265,000 jobs would be supported across the nation within twenty years.
For the Atlantic OCS development alone, the study projected that Atlantic production could be over 250 thousand barrels of oil equivalent per day within three years of initial production and increase to over 1 million barrels per day of oil equivalent within eight years of initial production.
As for the Pacific OCS, it has a projected $160 billion total cumulative spending over the twenty-year period and $25 billion spent per year by the oil and natural gas industry twenty years after initial lease sales with 300,000 jobs supported across the nation within twenty years.
The Eastern Gulf OCS is projected to have $118 billion total cumulative spending over the twenty-year period, $14 billion spent per year by the oil and natural gas industry twenty years after initial lease sales, and nearly 165,000 jobs supported across the nation within twenty years.
The final OCS, Alaska, has a projected $53.4 billion total cumulative spending over the twenty-year period, an estimated nearly $2 billion spent on average per year by the oil and natural gas industry, and support up to about 13,500 jobs per year across the nation over the twenty-year period.
Commenting on Friday, Milito said: “As today marks the end of the Bureau of Ocean Energy Management’s (BOEM) public comment period for the Department of the Interior’s (DoI) five-year National OCS Program, it is important to reiterate that the Interior’s plan is a good first step in the right direction of continuing America’s energy renaissance.
“While we applaud the Administration and Congress on passing unprecedented and historic tax reform that will support our energy renaissance, jobs, and world-class infrastructure, it is critical that offshore energy exploration and production continues to move forward in order for the U.S. to harness its full energy potential and to meet U.S. long-term energy needs. As these studies found, opening the OCS will bring economic benefits to local communities across the country for decades to come,” Milito added.