United States Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis

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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 for:
American Petroleum Institute (API)
National Ocean Industries Association (NOIA)

Prepared by:
Quest Offshore Resources, Inc.

Key Findings
This report has documented the decline in capital expenditures and operational spending of the GoM offshore oil and natural gas industry that occurred over the 2008 to 2010 period. The principal reasons for this decline include the economic recession in 2008-09 and the establishment of a moratorium on deepwater drilling and subsequent slowdown of permit issuance in both GoM deep and shallow waters in 2010 and into 2011. We estimate that tens of thousands of jobs have been lost in response to the decline in capital expenditures and operational spending of the offshore GoM oil and natural gas
industry over this period. We also demonstrate the near term potential of the offshore GoM oil and natural gas industry to create jobs, boost GDP and generate tax revenues at all levels of government – if the government pursues a balanced regulatory approach that
allows for the timely development of the backlog of GoM projects in an environmentally responsible manner. Under such government policy, we estimate total spending by the GoM offshore oil and natural gas industry to increase by over 70 percent by 2013
from 2010 levels, and capital expenditures to increase by over 140 percent. If potential spending levels are reached, total employment supported by the Gulf of Mexico oil and natural gas industry in 2013 could exceed 430 thousand jobs or a 77 percent increase
from 2010.

Additional Information

Publication Date

June, 2011

Deliverable

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