Studies reveal untapped US potential

Two new studies released today by the National Ocean Industries Association (NOIA) and the American Petroleum Institute (API) show significant potential added energy and economic benefits to the US if the eastern Gulf of Mexico and the Pacific outer continental shelf (OCS) were opened to offshore oil and natural gas development. 

Both studies were conducted by Quest Offshore, which also conducted a study of the Atlantic OCS, which NOIA and API released last year. 

“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,” says Randall Luthi NOIA president.  “We can do much more of the same with more access to the OCS.”

All three areas: the Eastern Gulf of Mexico, the Pacific OCS and the Atlantic OCS, are currently almost entirely off-limits to offshore oil and gas development but could be included in the federal government’s next five-year leasing program. If the federal government begins holding lease sales in these regions in 2018, the three studies show that by 2035:  

• Pacific OCS development could create more than 330,000 jobs, spur nearly US$140 billion in private sector spending, generate $81 billion in revenue to the government, contribute over $28 billion per year to the US economy, and add more than 1.2MMboe/d in domestic 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 per year to the US economy, and add nearly 1MMboe/d to domestic 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 per year to the US economy, and add 1.3MMboe/d to domestic energy production.
• Development in all three study areas -- the Eastern Gulf of Mexico, the Pacific OCS, and the Atlantic OCS – could, by 2035, create more than 838,000 jobs annually, spur nearly $449 billion in new private sector spending, generate more than $200 billion in new revenue for the government, contribute more than $70 billion per year to the US economy, and add more than 3.5MMboe/d to domestic energy production.

“None of the benefits shown in the studies can be realized without actual sales,” says Luthi.  “The key to tapping this amazing economic and energy potential is including lease sales in these areas in the 2017-2022 OCS Oil and Gas Leasing Program.”