8/6/2019 U.S. Gulf of Mexico Oil and Natural Gas Industry
Economic Impact Analysis -- Briefing Paper
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U.S. Gulf of Mexico Oil and Natural Gas Industry Economic Impact
Analysis -- Briefing Paper
The offshore oil and natural gas industry is instrumental to the
United States both from an energy supply perspective and
due to its contribution to U.S. GDP and job creation.
Essentially, production is crucial to U.S. energy security. Follows
are
highlights from the June 2011 study by Quest Offshore Resources,
Inc. (Quest).
The Quest study1 documents the decline in capital expenditures
and operational spending of the Gulf of Mexico(GoM) offshore oil
and natural gas industry between 2008 and 2010.
Quest identifies the principal reasons for this decline to be
the economic recession in 2008-09 and theestablishment of a
moratorium on deepwater drilling and subsequent slowdown of permit
issuance in both GoM
deep and shallow waters in 2010 and into 2011.
Quest estimates over 60,000 jobs have been lost in response to
the decline in capital expenditures and operationalspending of the
offshore GoM oil and natural gas industry over this period.
However, the analysis projects that the offshore GoM oil and
natural gas industry has the capacity to create jobs,boost GDP and
generate government revenues if the timely development of the
backlog of GoM projects ispermitted.
For example, assuming timely development of projects, 2013
capital expenditures could increase by over $9 billionfrom 2010
levels (a 140 percent increase), and total employment supported by
the Gulf of Mexico oil and natural
gas industry in 2013 could exceed 430 thousand jobs a creation
of about 187 thousand new American jobs.
While the majority of these jobs are in the Gulf region (TX, LA,
AL, MS), it is important to note that many of thesejobs would be
outside the region. For example, with a return to pre-Macondo
permitting levels, by 2013 oil and gas
development in the GoM alone could support the following
state-specific employment levels:
Gulf States:TX: 140,000 jobs
LA: 129,000 jobs
AL: 48,000 jobs
MS: 3000 jobs
Non-Gulf States:CA: 22,000 jobs
OK: 20,000 jobs
CO: 15,000 jobs
NM: 13,000 jobs
OH: 6000 jobs
AR: 4000 jobs
PA: 4000 jobs
AK: 3000 jobs
IL: 3000 jobs
KS: 2500 jobs
WY: 2000 jobs
UT: 1500 jobsWV: 1500 jobs
KY: 1500 jobs
FL: 1300 jobs
WI: 1200 jobs
VA: 1000 jobs
MI: 1000 jobs
1U.S. Gulf of Mexico Oil and Natural Gas Industry Economic
Impact Analysis, Quest Offshore Resources, Inc. (Quest), June
2011
