Executive Summary
Economic Impacts of Oil & Gas Development
on Federal lands in the West
http://westernenergyalliance.org/wp-content/uploads/2012/05/Final-Combined-ES-Econ-Impacts-of-OG-Dev-on-Fed-Lands-in-the-West.pdf
April 2012
Key Findings
• The total annual impact of the twenty proposed projects is 3,164 wells drilled, 120,905 jobs, $8 billion in wages, $27.5 billion in economic activity, and $139 million in government revenue. The total economic impact of the projects over their anticipated lifespan (usually between ten and fifteen years) is $383.5 billion.
• In the oil and natural gas NEPA process, companies are responsible for proposing projects, and the Bureau of Land Management (BLM) or the Forest Service (USFS) is responsible for completing the NEPA analysis. Development cannot proceed on federal lands until the government completes the NEPA analysis. Companies regularly pay for contractor support, yet the government is responsible for managing the contractors and approving the documents.
• The projects proposed in Wyoming could create 58,480 jobs, $14.8 billion in economic impact, and $82.5 million in government revenue annually, based on 1,720 wells drilled per year.
• The projects proposed in Utah could create 62,425 jobs, $12.7 billion in economic impact, and $56.7 million in government revenue annually, based on 1,445 wells drilled per year.
• The majority of the wells, 30,789, are proposed in NEPA documents that have been underway for over two years. Many of these were begun over five years ago, delaying projects for years past the usual processing times.
• Outstanding projects delayed over three years represent 22,835 proposed wells, or about 1,631 wells per year. Federal government delays to these projects are preventing the creation of 64,805 jobs, $4.3 billion in wages, and $14.9 billion in economic impact every year.
excellent find Thackney. as usual, you know where the sources lie in the oil and gas business in technical, regualatory and economic subject matter.
with natural gas at $2-$2.5 per mmbtu or dry mscf and the domestic glut expected to remain for years, i’d bet that very few of those projects could be economic. I don’t beleive the pace of development, or cost of non-development is realistic either. The amount of wells they discuss, and the time frame, would require about 150 to 200 or more land drilling rigs, crews and support to materialize virtually overnight.
who in their right mind would throw money at the western US federal properties, mostly dry natural gas, with oil and condensate rich opportunities in the Permian, Williston,
S Texas and other basins.
on one hand we have the feds stamping thir feet saying that big oil won’t develop and should be out there “making work”. and on the other we have big oil (small and mid sized US independents onshore) saying that they are over-regulated, and the are. If these were going to be profitable projects, they would be much more active.