Policies that encourage energy development could grow the U.S. economy by $443 billion per year and add 2.3 million jobs by 2035, according to a new study commissioned by the American Petroleum Institute. Conversely, a stiff energy regulatory regime could reduce the U.S. GDP by $138 billion per year through 2035 and cost 800,000 jobs.
The Wood Mackenzie study examined the economic impact of four pro-development policies — increased access to offshore resources, more efficient onshore permitting, quicker approval of energy infrastructure projects and lifting the ban on crude oil exports. These policies could boost oil and gas production by 8 million barrels of oil equivalent per day and reduce household energy bills by $360 per year.
Regulatory constraints studied included proposed rules on refinery emissions, ozone, fracking, tank car safety and blowout preventers and the Renewable Fuel Standard (RFS). Such laws could reduce oil and gas production by 3.4 million barrels per day and increase household energy bills by $255 per year.
Refiners would pay higher compliance costs under an aggressive RFS and would see lower achievable throughput under new emissions standards. Other policies that increase natural gas and power prices would also result in higher operating costs for refiners.
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