oil and gas
United States Gulf of Mexico Oil and Natural Gas Industry Economic Impact
Analysis
The Economic Impacts of GOM Oil and Natural Gas Development on the U.S. Economy
Prepared by:
Quest Offshore Resources, Inc.
Prepared for:
1600 Highway 6, Suite 300
American Petroleum Institute (API)
Sugar Land, TX 77478
National Ocean Industries Association (NOIA)
June 2011
Key Findings
This report has documented the decline in
generate tax revenues at all levels of
capital
operational
government – if the government pursues
spending of the GoM offshore oil and
a balanced regulatory approach that
natural gas industry that occurred over the
allows for the timely development of the
2008 to 2010 period. The principal reasons
backlog
for this decline include the economic
environmentally
recession in 2008-09 and the establishment
Under such government policy, we
of a moratorium on deepwater drilling and
estimate total spending by the GoM
subsequent slowdown of permit issuance in
offshore oil and natural gas industry to
both GoM deep and shallow waters in 2010
increase by over 70 percent by 2013
and into 2011. We estimate that tens of
from
thousands of jobs have been lost in
expenditures to increase by over 140
response
capital
percent. If potential spending levels are
expenditures and operational spending of
reached, total employment supported by
the offshore GoM oil and natural gas
the Gulf of Mexico oil and natural gas
industry over this period.
industry in 2013 could exceed 430
expenditures
to
the
and
decline
in
of
2010
GoM
projects
responsible
levels,
in
an
manner.
and
capital
thousand jobs or a 77 percent increase
We
also
demonstrate
the
near
term
potential of the offshore GoM oil and natural
from 2010.
.
gas industry to create jobs, boost GDP and
Table 1: Estimated Historical
Analysis
The Economic Impacts of GOM Oil and Natural Gas Development on the U.S. Economy
Prepared by:
Quest Offshore Resources, Inc.
Prepared for:
1600 Highway 6, Suite 300
American Petroleum Institute (API)
Sugar Land, TX 77478
National Ocean Industries Association (NOIA)
June 2011
Key Findings
This report has documented the decline in
generate tax revenues at all levels of
capital
operational
government – if the government pursues
spending of the GoM offshore oil and
a balanced regulatory approach that
natural gas industry that occurred over the
allows for the timely development of the
2008 to 2010 period. The principal reasons
backlog
for this decline include the economic
environmentally
recession in 2008-09 and the establishment
Under such government policy, we
of a moratorium on deepwater drilling and
estimate total spending by the GoM
subsequent slowdown of permit issuance in
offshore oil and natural gas industry to
both GoM deep and shallow waters in 2010
increase by over 70 percent by 2013
and into 2011. We estimate that tens of
from
thousands of jobs have been lost in
expenditures to increase by over 140
response
capital
percent. If potential spending levels are
expenditures and operational spending of
reached, total employment supported by
the offshore GoM oil and natural gas
the Gulf of Mexico oil and natural gas
industry over this period.
industry in 2013 could exceed 430
expenditures
to
the
and
decline
in
of
2010
GoM
projects
responsible
levels,
in
an
manner.
and
capital
thousand jobs or a 77 percent increase
We
also
demonstrate
the
near
term
potential of the offshore GoM oil and natural
from 2010.
.
gas industry to create jobs, boost GDP and
Table 1: Estimated Historical