The Economic Benefits of Increasing U.S. Access to Offshore Oil and Natural Gas Resources in the Eastern Gulf of Mexico
American Petroleum Institute (API)
National Ocean Industries Association (NOIA)
Quest Offshore Resources, Inc.
This report quantifies the significant benefits to the U.S. economy that would stem from opening the Eastern Gulf (Eastern Gulf of Mexico) to oil and natural gas development. Quest projected the potential impacts of Eastern Gulf offshore oil and natural gas exploration and production assuming first seismic activity in 2017, first lease sales in 2018, and first oil and natural gas production in 2023. This report estimates economic benefits through 2035.
Developing oil and natural gas resources in the Eastern Gulf would require an estimated $115 billion in cumulative investment and operational spending between 2017 and 2035. Investment would primarily be spent inside the U.S., mostly in the Gulf Coast states. By 2035, Eastern Gulf offshore oil and natural gas development could produce nearly one million barrels of oil equivalent per day (MMboe/d), generate nearly 230,000 jobs, contribute over $18 billion per year to the U.S. economy, and generate $70 billion in cumulative government revenue. The amount of revenue accrued to state governments would be dependent on any legislated federal/state revenue sharing agreements.