South-Central Gulf of America Economic Impact Study
A new study from the American Petroleum Institute (API) and the National Ocean Industries Association (NOIA) examines the potential economic and energy production impacts of expanded offshore oil and natural gas development in the South-Central Gulf of America.
Prepared by Energy and Industrial Advisory Partners (EIAP), the report evaluates opening Program Area B to offshore leasing beginning in 2029, with projected economic and production impacts through 2040.
South-Central Gulf of America: Projected Economic Impact by 2040
The API–NOIA study projects the following annual economic and production impacts in 2040 under its expanded offshore leasing and development scenario.
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133,000+
U.S. Jobs Supported
Employment supported through offshore development, supply chain activity and broader economic growth.
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$11.3 Billion
U.S. GDP
Projected annual GDP supported by expanded energy production and related investment.
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$13.1 Billion
Capital Investment & Industry Spending
Annual spending tied to offshore exploration, development and operations.
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Nearly $1.5 Billion
Government Revenues
Projected annual government revenues from lease bids, rents and royalties.
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470,000+ BOE/Day
Projected Offshore Energy Production
More than 470,000 barrels of oil equivalent per day of projected production by 2040.
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Source: Energy and Industrial Advisory Partners (EIAP), Unlocking the New South-Central Gulf of America for Energy Development: Potential Economic Impacts and Opportunities. All figures are projections for 2040 under the study's development scenario.
What Does the South-Central Gulf of America Study Examine?
Prepared by Energy and Industrial Advisory Partners (EIAP), the study evaluates the potential economic and energy production impacts of opening Program Area B in the South-Central Gulf of America to offshore leasing beginning in 2029. Its projections examine employment, investment, government revenues and offshore production through 2040.
Building on the Gulf's Existing Energy InfrastructureThe South-Central Gulf of America represents a potential extension of the region's established offshore energy industry, with access to existing infrastructure, an experienced workforce and specialized supply chain capabilities. Development in this region could complement existing Gulf production while generating additional demand for offshore services and equipment. |
Economic Opportunities Across the Supply ChainThe study's projected benefits extend beyond offshore production to workers and businesses involved in drilling, marine transportation, manufacturing, engineering and other offshore services. Expanded development could generate additional economic activity across the Gulf Coast and the broader U.S. offshore energy supply chain. |
Why the South-Central Gulf Matters
The Gulf of America already supports hundreds of thousands of jobs and produces roughly 2 million barrels of oil per day. The South-Central Gulf offers a potential new development area that could complement existing operations and attract additional offshore investment.
Because offshore projects operate on long development timelines, the study examines the potential benefits of beginning leasing in 2029 and the resulting economic and production activity through 2040. Its projected benefits are additional to those associated with existing Gulf of America operations.
Perspectives from NOIA and API
Erik MilitoPresident, National Ocean Industries Association
“The South-Central Gulf of America represents a natural extension of the Gulf of America’s proven energy ecosystem, with direct access to the infrastructure, workforce, and expertise that have made the region a global offshore leader.” “This study highlights the scale of the opportunity: new production, billions in investment, and tens of thousands of jobs. At a time of rising global demand and geopolitical uncertainty, expanding access strengthens America’s long-term ability to produce energy at home, build energy dominance, support our energy workers, and keep investment and capital here in the United States.” |
Dustin MeyerSenior Vice President of Policy, Economics and Regulatory Affairs, American Petroleum Institute
“In a volatile global energy environment, the United States is in a stronger position today because of sustained investment in domestic energy production and policies that support access to diverse supply regions within our borders. Expanding access to the South-Central Gulf of America creates a new source of secure domestic energy—helping meet growing demand while strengthening our economic and national security.” |
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API–NOIA ECONOMIC IMPACT STUDY
Download the Full South-Central Gulf of America Study
Read Unlocking the New South-Central Gulf of America for Energy Development: Potential Economic Impacts and Opportunities for the complete analysis of projected employment, economic activity, industry investment, government revenues and offshore energy production through 2040. Prepared by Energy and Industrial Advisory Partners (EIAP) | Released April 30, 2026
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