Two new studies indicated that the United States would see greater energy and economic benefits if the Eastern Gulf of Mexico (GoM) and the Pacific Outer Continental Shelf (OCS) were opened to offshore oil and gas development.

The studies, conducted by consultant Quest Offshore Inc. for the National Ocean Industries Association (NOIA) and the American Petroleum Institute API (API), were released on Nov. 19.

The Eastern GoM, the Pacific OCS and the Atlantic OCS are almost entirely off-limits to oil and gas development, according to the studies. However, the regions could be included in the federal government’s next five-year leasing program. If the federal government begins holding lease sales in these regions in 2018, the studies indicate that by 2035:

• Pacific OCS development could create more than 330,000 jobs, spur nearly $140 billion in private sector spending, generate $81 billion in revenue to the government, contribute more than $28 billion per year to the U.S. economy, and add more than 1.2 million barrels of oil equivalent per day in domestic energy production.

• Eastern GoM development could create nearly 230,000 jobs, spur $114.5 billion in private sector spending, generate $69.7 billion in revenue for the government, contribute more than $18 billion per year to the U.S. economy, and add nearly 1 million barrels of oil equivalent per day to domestic energy production.

• Atlantic OCS development could create nearly 280,000 jobs, spur $195 billion in private sector spending, generate $51 billion in revenue for the government, contribute up to $24 billion per year to the U.S. economy, and add 1.3 MMboe/d to domestic energy production.

• Development in all three study areas could create more than 838,000 jobs annually, spur nearly $449 billion in new private sector spending, generate more than $200 billion in new revenue for the government, contribute more than $70 billion per year to the U.S. economy, and add more than 3.5 MMboe/d to domestic energy production.

“The U.S. oil and gas industry is already a major source of jobs, economic activity, revenue to state and federal governments, and affordable and reliable American energy for American consumers. We can do much more of the same with more access to the OCS,” NOIA president Randall Luthi said.

“None of the benefits shown in the studies can be realized without actual sales. The key to tapping this amazing economic and energy potential is including lease sales in these areas in the 2017-2022 OCS Oil and Gas Leasing Program,” he added.

Erik Milito, API’s director of upstream, said, “Polling shows that 70 percent of voters in this year’s midterm elections support offshore drilling, and 57 percent do not think the federal government does enough to encourage domestic oil and natural gas production. The next offshore leasing program is an opportunity for the Obama administration to let those voters know their voices are being heard.”

Offshore