For Immediate Release: Thursday, February 24, 2011
Contact: Nicolette Nye (202) 347-6900
Thousands of New Jobs and Billions in Government Revenue Locked Up
in Undeveloped Resources Offshore Alaska
Washington, DC – According to a report released today, development of oil and gas resources in Alaska’s outer continental shelf (OCS) could produce almost 10 billion barrels of oil and 15 trillion cubic feet of natural gas – creating an annual average of almost 55,000 new jobs and $145 billion in new payroll nationally, as well as a total of $193 billion in government revenue through the year.
“In these times of economic hardship and global uncertainty, we should take full advantage of the untapped and unexplored oil and natural gas supplies off our own shores,” said Randall Luthi, President of the National Ocean Industries Association (NOIA). “Responsible and safe development of these resources would not only provide increased domestic energy security, but also needed jobs, income and government revenue.”
According to the study by Northern Economics and the University of Alaska Anchorage’s Institute of Social and Economic Research, sustained job creation would increase income and further stimulate domestic economic activity. Among the $193 billion in government revenue that would be realized from OCS oil and gas development in Alaska, the estimated revenue for the federal government is $167 billion, followed by $15 billion to the state of Alaska, $4 billion to local Alaska governments and $6.5 billion to other state governments.
President Obama’s recently proposed Fiscal Year 2012 budget includes $358.4 million for the Bureau of Ocean Energy Management and Regulation (BOEMRE), which would be offset by $65 million in inspection fees for offshore facilities – a $55 million increase from the previous year.
“These new fees will drive investment and jobs elsewhere at this time of tremendous uncertainty. The best way for the federal government to raise more revenue for the treasury would simply be to open up our own abundant offshore resources for responsible and safe development,” said Luthi.
About 77 percent of world oil reserves are owned or controlled by national governments and the U.S. currently imports over 60 percent of its crude oil. Northern Economics estimates that Arctic offshore development could cut this by about 9 percent over 35 years.
“Even as we watch events unfold in Libya and hope that freedom will wax and violence will wane, we need to heed the warning visible on gas station signs across the country: We depend far too much on foreign oil supplies,” Luthi concluded.
NOIA is the only national trade association representing all segments of the offshore industry with an interest in the exploration and production of both traditional and renewable energy resources on the nation’s outer continental shelf. The NOIA membership comprises more than 275 companies engaged in business activities ranging from producing to drilling, engineering to marine, land and air transport, warehousing and logistics to offshore construction to equipment manufacture and supply, telecommunications to finance and insurance.