Offshore drilling within the Atlantic has been a serious topic for debate since the mid-1980s. A study conducted for the American Petroleum Institute and therefore the National Ocean Industries Association explored the oil and gas reserves evaluation off the East Coast and highlights the advantages of moving forward with oil and gas exploration. Located on the ocean, the states on the Eastern Coast will benefit the foremost economically. the remainder of us also will see a measurable economic gain from this offshore drilling.
Statistics from the survey are estimates of the advantages between 2017 and 2035. the large push for this timing comes from the upcoming Five-Year Offshore Leasing Plan, which can renew in 2017. The oil and gas industry is hoping that the govt lifts the embargo on the Atlantic Outer ocean floor (OCS) because it has been restricted since the 1980s.
While assessing exploration and production opportunities on the Atlantic OCS, the survey found that the U.S. economy could gain up to $23.5 billion per annum from 2017 to 2035. additionally, the govt could earn $51 billion in revenue. This revenue would come from selling leases to grease and gas companies, bonuses from companies bidding against one another and royalties from production activities. After 2017, investments are expected to grow and produce higher revenues for the U.S.
Seventy-five percent of this economic gain would be seen by the Mid-Atlantic states, particularly North Carolina, South Carolina, and Virginia. Northern Atlantic states, including Massachusetts, Maine, and NY, also will see significant economic benefits. Over time, revenues will reach other regions of us.
In addition to investments, Atlantic OCS activity requires tons of resources, like technology, equipment, and labor. This project is predicted to make up to 280,000 jobs between 2017 and 2035. Quite 200,000 of these jobs are going to be located within the Eastern Coast states and an estimated 65,000 jobs in other U.S. regions by the year 2035. In North and South Carolina, jobs will open up in high-tech manufacturing industries. Virginia’s opportunities will expand due to its dry docks and equipment supply companies. Other industries that will enjoy offshore drilling are construction, scientific services, professional and oil and gas. Not only will Atlantic OCS activity address unemployment issues within the country. But it’ll also achieve the goal of upper revenues without raising taxes.
Estimating that seismic activity begins in 2017. The govt would be ready to sell leases in 2018, and production could begin as soon as 2026. The survey suggests that companies could drill approximately 30 wells per annum between 2017 and 2030. This figure would increase to 66 wells per annum between 2031 and 2035. The whole project has the potential to supply 1.3 million barrels of oil equivalent per day (boepd) by 2035. As a comparison, current offshore production within the Gulf of Mexico, Alaska, and California are 1.87 million bonds. With results like these, the U.S. could become an exporter of oil and gas, bringing in additional revenue.
What must happen?
To realize these benefits, the federal must adopt new energy strategies that promote development. By lifting the embargo on the Atlantic OCS. The oil and gas industry also must offer financial investments. Environmental supporters have concerns. With the oil and gas risk assessment, but the survey shows that the economic benefits of offshore drilling significantly outweigh the prices related to environmental effects. Other countries like West Africa and South America have already seen success from Atlantic exploration, so it’s up to us to require advantage of their results and therefore the estimated benefits.