Report: Increased Drilling Generates Revenue, Creates Thousands of Jobs, Boosts Energy Security

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Report: Increased Drilling Generates Revenue, Creates Thousands of Jobs, Boosts Energy Security

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The development of the United States’ vast domestic oil and natural gas resources that had been kept off limits by Congress for decades could generate more than $1.7 trillion in government revenue, create thousands of new jobs and enhance the nation’s energy security by significantly boosting domestic production, a study released Monday shows.

The ICF International study, commissioned by the American Petroleum Institute, shows that developing the offshore areas that had been subject to Congressional moratoria until recently, as well as the resources in Alaska’s Arctic National Wildlife Refuge and a small portion of currently unavailable federal lands in the Rockies, would lift U.S. crude oil production by as much as 2 million barrels per day in 2030, offsetting nearly a fifth of the nation’s imports. Natural gas production could increase by 5.34 billion cubic feet per day — or the equivalent of 61 percent of the expected natural gas imports in 2030.

The study also estimates that the development of all U.S. oil and natural gas resources on federal lands could exceed $4 trillion over the life of the resources.

“This study underscores how the oil and natural gas industry can enhance America’s energy security and help solve our economic problems by increasing production of our nation’s vast oil and natural gas resources,” said Jack N. Gerard, API president and CEO.  “The U.S. oil and natural gas industry supports more than six million jobs, and more drilling for oil and natural gas will mean more energy for America, more well-paying jobs, and trillions of dollars of much-needed revenues that will help federal, state and local governments pay for critical services.”

According to the ICF study, U.S. crude oil production would rise by 36 percent by 2030 if development is permitted in the studied areas of the Outer Continental Shelf, ANWR and the Rockies and domestic natural gas production would rise by 10 percent. By 2030, this activity would create 160,000 jobs.

For more results, read the final study report (pdf).

-- Bob McCarty Writes

See also:

Industry Hopeful About Offshore Drilling Prospects

Oil Industry Awaits Assurances on Drilling Ban