New Study Bodes Well For Gulf Oil and Gas Industry
A new study released today by the National Ocean Industries Association (NOIA) and the
American Petroleum Institute (API) shows the important nationwide jobs and economic impact of the Gulf of Mexico offshore oil and gas industry and reveals the effect of permitting on those figures.
According to the study conducted by Quest Offshore Inc., the Gulf offshore oil and gas industry supported more than 240,000 jobs across the country while contributing more than $26 billion to the nation’s GDP in 2010.
“The Gulf offshore oil and gas industry supports tens of thousands of jobs outside the Gulf of Mexico”” said Randall Luthi, president of NOIA. “These jobs are found across the United States
– at places like Redwing Shoe Company in Minnesota, Godwin Pumps in New Jersey and
Hammerhead Industries in California, just to name a few.”
But offshore industry-related jobs are down from 2008, the study shows, due in part to the poor economy, the deepwater moratorium, and the continuing slow pace of new drilling permits in the gulf. More than 60,000 jobs have been lost in the Gulf States alone since 2008, according to the study.
There is potential for good news, though: the study also projects that if exploration and development permitting return to historic levels and backlogged projects are processed, the Gulf offshore industry could help create an additional 190,000 jobs by 2013 for a total of more than
400,000 industry supported jobs across the United States. The Gulf offshore industry could also contribute nearly $45 billion dollars to the nation’s GDP by 2013.
“The bad news is that the current pace of permit reviews and approvals will just not get us there,” said Luthi.
The study also found that the vast majority of industry-related spending, more than 95 percent, stays right here in the United States, creating more jobs and more economic growth at home, instead of sending it overseas.
“American energy, the American economy, and American jobs — this new study clearly shows that the offshore oil and gas industry is an essential part of creating and sustaining all three” said Luthi. “And that’s just the beginning. The Gulf could do even more to fuel America and America’s economic-recovery—if allowed.”
The Quest Study as well as a fact sheet and video related to the study can be found on the NOIA homepage at www.noia.org.
Quest Study: U.S. Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis (click to download pdf)
Fact Sheet: From the Gulf of Mexico to the Entire Nation (click to download pdf)
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