The Economic Benefits of Increasing U.S. Access to Offshore Oil and Natural Gas Resources in the Pacific
American Petroleum Institute (API)
National Ocean Industries Association (NOIA)
Quest Offshore Resources, Inc.
This report projects the economic benefits to the Pacific states and the U.S. in general that would stem from opening the Pacific OCS (outer continental shelf) to new and expanded oil and natural gas development. The analysis assumes new seismic activity in 2017 and new lease sales in 2018. Quest estimates that oil and natural gas production from new projects could begin by 2023. This report estimates the economic benefits of this activity through 2035.
Developing oil and natural gas resources in the Pacific OCS could lead to an estimated $163 billion in cumulative investment and operational spending between 2017 and 2035. Approximately $140 billion would be spent inside the U.S., mostly in the Pacific Coast states of California, Oregon, and Washington. By 2035, Pacific OCS oil and natural gas development could produce an incremental 1.2 million barrels of oil equivalent per day (MMboe/d), generate over 330,000 jobs, contribute over $28 billion per year to the U.S. economy and generate $81 billion in cumulative government revenue. The amount of revenue accrued to state governments would be dependent on any legislated federal/state revenue sharing agreements.