New Report Links Economic Growth with Increased Energy Production
Issuing Drilling Permits in the Gulf of Mexico Would Create More than 200,000 New Jobs, Report Finds
HOUSTON – Increasing energy production in the Gulf of Mexico would be the “engine” that drives strong job growth and reduces America’s dependence on imported oil, according to a new study by IHS-CERA and IHS Global Insight.
The report, entitled “Restarting ‘the Engine’ – Securing American Jobs, Investment, and Energy Security,” finds that an increase in the pace of permit approvals for oil and gas exploration in the Gulf would create hundreds of thousands of new jobs throughout virtually every state in the country, increase tax receipts and royalty revenues for governments, and dramatically improve America’s energy security.
More specifically, the report finds that issuing the necessary permits to resume full Gulf of Mexico oil and gas exploration would:
- Create 230,000 jobs across America
- Boost U.S. gross domestic product by $44 billion
- Generate nearly $12 billion in revenue to state and federal treasuries
- Increase domestic production by more than 400,000 barrels of oil per day
- Reduce spending on imported oil by $15 billion
The study was commissioned by the Gulf Economic Survival Team (GEST), which was founded in June of 2010 with the purpose of restoring energy production in the Gulf of Mexico and helping area residents get back to work, chiefly by facilitating communication between operators, state government, and the federal government to clarify new exploration and drilling requirements.
In response to the release of the report, Consumer Energy Alliance (CEA) president David Holt issued the following statement:
“This study is another wake-up call to those who believe that we can grow the economy while continuing to restrict or delay American energy development. Americans in states all across the country are desperately looking for work, and it’s clear that the Administration’s refusal to issue permits for responsible oil and gas exploration in the Gulf is contributing to that economic pain. At a time of high unemployment and unsustainable debt, restarting the economic engine of energy production in the Gulf of Mexico would help drive us toward a stronger and more sustainable economic future. This report makes clear that CEA members across the nation – from manufacturing to agriculture to transportation and small business – are being negatively impacted by the prolonged delays in offshore development.
“Immediately moving ahead with additional oil and gas production is a vital component of a broader, balanced energy policy that improves energy security and reduces costs for consumers through increased access to America’s vast energy supplies – from traditional sources to renewables and energy efficiency technologies.”
The executive summary and key findings of the study can be accessed by visiting GEST’s website, www.GulfEconomicSurvival.org.