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NOIA: Untapped US potential in eastern GoM

Written by  Tuesday, 25 November 2014 10:11

According to the National Ocean Industries Association (NOIA), there is untapped potential of offshore energy located in the Eastern Gulf of Mexico (GoM) that could greatly benefit the US. That is, if the Eastern GoM were opened to offshore oil and natural gas development.

Image from NOIA.
 

Last week, the NOIA and American Petroleum Institute (API) released two new economic studies, conducted by Quest Offshore, that outline the benefits of increased access to the outer continental shelf (OCS) in the Eastern GoM and the Pacific.

As of today and the near future, the Eastern GoM, the Pacific OCS and the Atlantic OCS are off-limits to offshore oil and gas development. However, all three areas could be included in the federal government’s next five-year leasing program.

According to the NOIA and API studies, should the federal government begin holding lease sales in these three regions in 2018, several benefits could happen in all three areas by 2035, including development in the three areas could create more than 838,000 jobs annually, spur nearly US$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.

The breakdown by region is:

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 per year to the US economy
  • 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 more than $18 billion per year to the US economy
  • 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
  • Add 1.3MMboe/d to domestic energy production

“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. We can do much more of the same with more access to the OCS,” says Randall Luthi NOIA president. “None of the benefits shown in the studies can be realized without actual sales. 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.”

The NOIA also released a video to illustrate the impact of the Eastern GoM. 

 

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