The Economic Benefits of Increasing U.S. Access to Offshore Oil and Natural Gas Resources in the Atlantic
American Petroleum Institute (API)
National Ocean Industries Association (NOIA)
Quest Offshore Resources, Inc.
This report quantifies the significant potential benefits to the U.S. economy that would stem from opening the Atlantic outer continental shelf to oil and natural gas exploration. Federal offshore lease sales under existing U.S. law would be expected to lead to high levels of offshore oil and natural gas activity. This activity would require large amounts of investment and operational spending by oil and gas operators, an estimated $195 billion cumulative between 2017 and 2035, which would be primarily spent inside the U.S. and the Atlantic coast states. If seismic activity were to begin in 2017 and lease sales in 2018, first production could be expected as early as 2026. By 2035, offshore oil and natural gas development could produce an incremental 1.3 million barrels of oil equivalent per day (MMboe/d), generate nearly 280,000 jobs, contribute up to $23.5 billion per year to the U.S. economy, and generate $51 billion in cumulative government revenue, Most of the benefits would be accrued to states along the east coast but the economic impacts would be felt throughout the U.S. The amount of revenue accrued to state governments would be dependent on legislated federal/state sharing agreements.1