The Gulf of Mexico (GOM) provides families and businesses across Louisiana, the Gulf Coast region, and the nation with reliable American energy so families and businesses can more
affordably power and fuel their homes, electronics, and cars, while also supporting communities across the state through jobs and revenue generation. Affordable energy is especially vital to Louisiana, which is first in the nation for average monthly
consumption of residential electricity.((https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf))
In addition to having abundant energy, in Louisiana alone during Fiscal Year 2014, Gulf of Mexico energy activity supported 121,000 jobs in the state and $10 billion in Gross
Domestic Product (GDP).((https://www.boem.gov/2017-2022-Proposed-Program-Decision/)) By ensuring and expanding economic opportunities that result from energy development, Louisiana can help provide jobs and critical services for people across the state, including the 20 percent of Louisianans living in poverty.((https://www.census.gov/quickfacts/fact/table/LA/PST045216))
Moving forward in accordance with the new administration’s America-First Offshore Energy Strategy,((https://www.whitehouse.gov/the-press-office/2017/04/28/presidential-executive-orderimplementing-america-first-offshore-energy)) the U.S. Department of the Interior (DOI) in July 2017 formally launched a public process to develop a new 2019-2024 National Outer Continental Shelf Oil and Gas Leasing Program.((https://www.boem.gov/National-OCS-Oil-and-Gas-Leasing-Program-for-2019-2024/)) Through this new process, all offshore areas, including in the Gulf of Mexico will be evaluated for potential inclusion in the new leasing program.
In January 2018, the DOI issued its 2019-2024 Draft Proposed Program, which includes opportunities for expanded access to American energy in regions including the Gulf of Mexico.During this new public review phase, areas including the Gulf will be further evaluated for potential future leasing activity.
Continued and expanded energy development in the Gulf of Mexico represents a vital opportunity to boost job creation, grow our economy, and preserve our way of life for families, seniors, and households across the state and for future generations of Louisianans.
Based on today’s prices, Gulf of Mexico oil and natural gas resources are valued at over $3.86 trillion, the production of which could generate up to $723.7 billion in royalty revenue for federal, state, and local governments.((https://www.boem.gov/2016a-National-Assessment-Fact-Sheet/))((http://markets.businessinsider.com/commodities/oil-price))((http://markets.businessinsider.com/commodities/natural-gas-price))
One study has found that for Louisiana alone, expanded Gulf development could create up to:
- Nearly 31,000 jobs
- Over $2.5 billion in annual GDP
- Almost $2.3 billion in new state revenue((http://www.noia.org/wp-content/uploads/2014/11/The-Economic-Benefits-of-Increasing-US-Access-to-Offshore-Oil-Natural-Gas-Resources-in-the-Eastern-GoM.pdf))
As a new program is developed, lease sales under the existing leasing plan will continue. In October 2017, the DOI announced its intention to conduct the largest offshore lease sale in U.S. history, proposing to offer nearly 77 million acres at an upcoming March 2018 lease sale.((https://www.doi.gov/pressreleases/secretary-zinke-announces-largest-oil-gas-lease-sale-us-history )) U.S. Senator Bill Cassidy noted that “investing in energy creates better jobs with better benefits for working families, strengthens our national security and strengthens our energy independence,” while U.S. Senator John Kennedy said that the sale “will create jobs and bolster our state and national economy.”
U.S. House Majority Whip Steve Scalise (LA-1) added that the sale will lead to “good jobs and kick start more economic growth” and “help us continue fighting for the responsible development of our natural resources that bring critical dollars to restore our coast.”
Pursuant to federal law, offshore energy development is providing Louisiana with a new source of funding for activities ranging from infrastructure improvements to environmental restoration and beyond. With a robust energy, fishing, and tourism activity, Louisiana is a
clear example of how we can have both responsible energy development AND environmental protection.
For additional information on how you can get involved, please visit YESOCS.com
For a PDF of this information on Louisiana, please click here.