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U.S. Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis -- Briefing Paper

U.S. Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis -- Briefing Paper

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Published by Energy Tomorrow
A briefing paper based on the June 2010 study by Quest Offshore Resources, Inc. (Quest), drawing on its proprietary database of suppliers of capital equipment and intermediate goods to Gulf of Mexico oil and natural gas operations, is able to bring primary data to bear on the issues of importance to this study. The oil and natural gas industry activity supports employment across a wide swath of industries in manufacturing and services, including oil and natural gas machinery, air and marine transport, legal and insurance services. This report builds out the entire value chain of oil and natural gas development and production in the Gulf of Mexico. It quantifies the capital investment and purchases of intermediate goods undertaken by the oil and natural gas industry, identifies linkages to supplying industries, and estimates both job creation and contribution to GDP associated with oil and natural gas development. A unique feature and strength of this study is the primary nature of the capital investment and spending data.
A briefing paper based on the June 2010 study by Quest Offshore Resources, Inc. (Quest), drawing on its proprietary database of suppliers of capital equipment and intermediate goods to Gulf of Mexico oil and natural gas operations, is able to bring primary data to bear on the issues of importance to this study. The oil and natural gas industry activity supports employment across a wide swath of industries in manufacturing and services, including oil and natural gas machinery, air and marine transport, legal and insurance services. This report builds out the entire value chain of oil and natural gas development and production in the Gulf of Mexico. It quantifies the capital investment and purchases of intermediate goods undertaken by the oil and natural gas industry, identifies linkages to supplying industries, and estimates both job creation and contribution to GDP associated with oil and natural gas development. A unique feature and strength of this study is the primary nature of the capital investment and spending data.

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Published by: Energy Tomorrow on Jul 11, 2011
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11/09/2012

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U.S.

Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis -- Briefing Paper
The offshore oil and natural gas industry is instrumental to the United States both from an energy supply perspective and due to its contribution to U.S. GDP and job creation. Essentially, production is crucial to U.S. energy security. Follows are highlights from the June 2011 study by Quest Offshore Resources, Inc. (Quest). • The Quest study1 documents the decline in capital expenditures and operational spending of the Gulf of Mexico (GoM) offshore oil and natural gas industry between 2008 and 2010. Quest identifies the principal reasons for this decline to be the economic recession in 2008-09 and the establishment of a moratorium on deepwater drilling and subsequent slowdown of permit issuance in both GoM deep and shallow waters in 2010 and into 2011. Quest estimates over 60,000 jobs have been lost in response to the decline in capital expenditures and operational spending of the offshore GoM oil and natural gas industry over this period. However, the analysis projects that the offshore GoM oil and natural gas industry has the capacity to create jobs, boost GDP and generate government revenues – if the timely development of the backlog of GoM projects is permitted. For example, assuming timely development of projects, 2013 capital expenditures could increase by over $9 billion from 2010 levels (a 140 percent increase), and total employment supported by the Gulf of Mexico oil and natural gas industry in 2013 could exceed 430 thousand jobs – a creation of about 187 thousand new American jobs. While the majority of these jobs are in the Gulf region (TX, LA, AL, MS), it is important to note that many of these jobs would be outside the region. For example, with a return to pre-Macondo permitting levels, by 2013 oil and gas development in the GoM alone could support the following state-specific employment levels: Gulf States: TX: 140,000 jobs LA: 129,000 jobs AL: 48,000 jobs MS: 3000 jobs Non-Gulf States: CA: 22,000 jobs OK: 20,000 jobs CO: 15,000 jobs NM: 13,000 jobs OH: 6000 jobs AR: 4000 jobs PA: 4000 jobs AK: 3000 jobs IL: 3000 jobs KS: 2500 jobs WY: 2000 jobs UT: 1500 jobs WV: 1500 jobs KY: 1500 jobs FL: 1300 jobs WI: 1200 jobs VA: 1000 jobs MI: 1000 jobs

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U.S. Gulf of Mexico Oil and Natural Gas Industry Economic Impact Analysis, Quest Offshore Resources, Inc. (Quest), June 2011
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