Skip to comments.Study: Atlantic drilling could give economy $23.5B boost
Posted on 12/08/2013 5:54:25 AM PST by thackney
If companies were allowed to drill for oil and gas in Atlantic waters off the East Coast, the work would help create nearly 280,000 new jobs and contribute some $23.5 billion to the U.S. economy each year by 2035, according to a study unveiled Thursday by two industry trade groups.
The report by Sugar Land, Texas-based Quest Offshore Inc. also projects that the activity could yield 1.3 million barrels of oil equivalent per day, based on current estimates of the amount of crude and natural gas lurking along the East Coast.
Commissioned by the National Ocean Industries Association and the American Petroleum Institute, the study represents the oil industrys latest bid to convince the Obama administration to make plans for auctioning offshore drilling leases in Atlantic waters beginning as soon as 2017.
The Interior Departments Bureau of Ocean Energy Management soon will begin the long process of developing a schedule for selling outer continental shelf drilling leases from Aug. 27, 2017 through mid-2022 and the oil industry wants to make sure the Atlantic acreage isnt left out.
The key is getting Atlantic lease sales included in the 2017-2022 offshore leasing plan, said Randall Luthi, head of the National Ocean Industries Association. None of the benefits shown in the study can be realized without actual sales.
Luthi likened expanded offshore energy development to a silver bullet that will decrease unemployment, increase federal revenue without raising taxes, and make America more energy secure.
And Erik Milito, the APIs director of upstream and industry operations, called oil and natural gas production off the East Coast a potential gold mine.
Developing oil and natural gas in the Atlantic could put hundreds of thousands of Americans to work, make us more energy secure, and bring in needed revenue for the government, Milito said. But none of these benefits will appear unless the federal government follows pro-development energy policies.
Most U.S. offshore oil and gas development is concentrated in the Gulf of Mexico, though some activity continues off the southern California coast and in waters around Alaska.
Although the federal waters of the Atlantic Ocean are technically open for oil exploration, drilling leases must be sold in government auctions, and none of those sales are planned for the area under a schedule that runs through Aug. 26, 2017. In assembling that current sale schedule, Interior Department officials insisted private companies should first conduct geophysical research to get a sense of the areas potential oil and gas resources before the government makes any leasing decisions or schedules sales.
The last geophysical studies of the area which formed the basis for some of the resource estimates used in Quests report were conducted decades ago, before advancements in seismic research that allow geologists to get a better look below underground salt layers.
The ocean energy bureau appears likely to broadly approve seismic research in the Atlantic as soon as next January, though industry representatives say that litigation and individual permit reviews mean the geological surveys might not begin for several years.
Although the Quest study predicts that economic benefits from Atlantic oil development would flow well beyond the East Coast, the report finds significant benefits there. For instance, North Carolina, South Carolina and Virginia would see the largest gain in jobs as a result of the activity, Quest predicted.
Although some states such as the Carolinas, Virginia, Massachusetts, New York and Maine are expected to see larger benefits, the effects of offshore oil and natural gas activity are expected to be felt all along the Atlantic coast, the report said. The nation as a whole, but especially the Atlantic coast states would likely see large employment increases, increased economic activity and increased government revenue as well as increased domestic oil and natural gas production, increasing the nations energy security.
The Quest analysis assumed oil and gas drilling leases would be sold along the mid- and south Atlantic beginning in 2018, with north Atlantic acreage auctioned no sooner than 2020. The analysts assumed industry interest in the Atlantic waters would parallel the activity during other outer continental auctions, with no more than 480 mid- and south Atlantic leases sold annually.
Working under those assumptions, Quest predicted that 69 offshore Atlantic projects would begin oil and natural gas production between 2017 and 2035, with most 52 in deep water. The analysts also forecast that oil companies would drill an average of 30 wells in Atlantic waters each year.
Obama has this idea filed under: “Things I must never allow”.
I see they’re hoping for a business friendly president and congress. I think we’ve seen the last of those.
Well, at least this would get the rabid ecowhackos back out of flyover country...
“If companies were allowed to drill for oil and gas in Atlantic waters off the East Coast, the work would help create nearly 280,000 new jobs and contribute some $23.5 billion to the U.S. economy....”
We certainly can’t have that now, can we? (sarc)
Atlantic? Heck, there is a lake of oil just off the coast of Santa Barbara.
But the wealthy lefties who live up there don’t want their million dollar views of the Pacific Ocean spoiled with oil rigs.
With our current “leadership,” it’s probably going to cost us over $23.5B and we won’t see anything from that drilling because some foreign country will be doing it with our money.
(Not to sound pessimistic or anything lol)
23 billion? Just enough for another war in the ME.
People with interest in local fisheries (it is in the tidewater MD/VA area) who had contacted me asked what they should do because environmental groups were soliciting their support in opposing drilling. Iknew of the one well which had been drilled, and I told them to go out to the location check it out (the well had been plugged and abandoned, the site reclaimed). When they finally found the dry hole marker in the meadow, they refused to object to the drilling program, because, as they put it, "things were being done right".
Still, the environmentalists prevailed.
Had the project continued and been successful, the whole DC Metro area could have been heating with natural gas instead of fuel oil or electricity for the past 30 years.
Nope, can't have stuff like that.
That's about the additional amount CGI Federal will need to fix the Obamacare website.......
Let’s go for lower gas prices!
Obama: can we get back to killing bald eagles? We’re good at that.
It’ll just run the guvmint twenty days.
That’s Cheyenne Mountain in the background, isn’t it?
$23.5B? I think that drilling off New England would help the economy of those states. But then again, except for Maine and New Hampshire (at this time) it will never happen, because of Liberals.
Tell me again why a windmill off the cost is ascetically more pleasing than an oil well?
Is it standard procedure to do multiple surveys before any bidding is scheduled?
In assembling that current sale schedule, Interior Department officials insisted private companies should first conduct geophysical research to get a sense of the areas potential oil and gas resources before the government makes any leasing decisions or schedules sales.
This is like someone saying, “you take the car in,
pay to have it checked out, and if it’s good, we’ll tell you how much we want for it”.