Prepared by:Quest Offshore Resources, Inc. Prepared for:1600 Highway 6, Suite 300 American Petroleum Institute (API)Sugar Land, TX 77 National Ocean Industries Association (NOIA)June 2011
United States Gulf of Mexico Oil and Natural Gas Industry Economic ImpactAnalysis
The Economic Impacts of GOM Oil and Natural Gas Development on the U.S. Economy
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Key Findings
This report has documented the decline incapital expenditures and operationalspending of the GoM offshore oil andnatural gas industry that occurred over the2008 to 2010 period. The principal reasonsfor this decline include the economicrecession in 2008-09 and the establishmentof a moratorium on deepwater drilling andsubsequent slowdown of permit issuance inboth GoM deep and shallow waters in 2010and into 2011. We estimate that tens ofthousands of jobs have been lost inresponse to the decline in capitalexpenditures and operational spending ofthe offshore GoM oil and natural gasindustry over this period.We also demonstrate the near termpotential of the offshore GoM oil and naturalgas industry to create jobs, boost GDP andgenerate tax revenues at all levels ofgovernment – if the government pursuesa balanced regulatory approach thatallows for the timely development of thebacklog of GoM projects in anenvironmentally responsible manner.Under such government policy, weestimate total spending by the GoMoffshore oil and natural gas industry toincrease by over 70 percent by 2013from 2010 levels, and capitalexpenditures to increase by over 140percent. If potential spending levels arereached, total employment supported bythe Gulf of Mexico oil and natural gasindustry in 2013 could exceed 430thousand jobs or a 77 percent increasefrom 2010..
Table 1
:
Estimated Historical and Projected Capital and Operational Spending, GDPImpacts, and Employment
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Supported by the Offshore Gulf of Mexico Oil and Natural GasIndustry (2008-2013)*
*Projected spending, GDP, and employment contingent on returning to pre-Macondo permitting rates.
Source: Quest Offshore Resources, Inc.
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Total employment includes direct, indirect, and income induced employment.
($billions)
200820092010201120122013
Operating Expenditures$16.7$17.2$17.7$21.6$25.0$25.7Capital Expenditures$11.9$9.7$6.5$8.9$10.4$15.7GDP Impacts$30.8$29.1$26.1$32.9$38.2$44.5Total Employment306,870285,042242,317311,023356,174429,208HistoricalProjected
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U.S. Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis
The offshore oil and natural gas industry is instrumental to the United States both from an energy supply perspective and due to its contribution to U.S. GDP and job creation. In 2010, over 30 percent of…
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