The Texas Oil and Gas Association (TXOGA), LMOGA and API have released an analysis that warns of negative consequences from a proposed ban on federal leasing on natural gas and oil development on public lands and waters. The offshore Gulf of Mexico accounts for over 15 percent of U.S. oil production. The analysis projects local economies in the Gulf Coast region would be among the hardest hit areas with more than 200,000 job losses by 2022 and millions of dollars in reduced revenue.
"An affordable and reliable energy supply is essential to a strong America, and banning energy development on federal lands and in offshore waters not only threatens thousands of the best-paying jobs, but needlessly erases much-needed revenue that helps pay for schools and other essential services," said Todd Staples, president of TXOGA. "American oil and natural gas is safe, clean and abundant, and misguided policies will only stifle our nation's energy progress."
"Louisiana's oil and natural gas industry has a long history of driving the economies of the Gulf Coast and providing energy security for America," said Lori LeBlanc, vice president of LMOGA. "The impact of a ban on federal leasing would have devastating impacts on the livelihoods of thousands of Louisiana families and on the communities that depend on our tax revenues for critical operating resources for local governments, and for the protection and resiliency of our coast. At a time when our state needs revenue the most -- in the wake of Hurricane Laura -- banning leasing in federal waters is backwards policy."
"A ban on federal leasing and offshore development would have devastating consequences for America's largest energy corridor, with local communities along the Gulf Coast projected to lose thousands of jobs and millions in state revenue," said API President and CEO Mike Sommers. "This would be a backwards approach to U.S. energy policy, not only hurting the Gulf Coast region but diminishing America's role as a global energy leader and undermining environmental progress."
The impact on states in the Gulf Coast region would be significant:
- Gulf Coast states could lose more than $223 million in revenue, including $65 million for Texas, $95 million for Louisiana, $31 million for Alabama and $32 million for Mississippi.
- Texas, Louisiana, Alabama and Mississippi could lose more than $22 million in funding from the Land and Water Conservation Fund.
Nearly 1 million U.S. jobs would be lost by 2022, including more than 200,000 jobs in the Gulf Coast region.
- Texas would lose nearly 120,000 jobs, Louisiana would lose over 48,000 jobs, Alabama would lose nearly 21,000 jobs and Mississippi would lose nearly 14,000 jobs.
- America's energy security would be at risk:Offshore production of natural gas would decrease by 68 percent, and oil production would decrease by 44 percent.
- U.S. oil imports from foreign sources would increase by 2 million bpd.
- The U.S. would spend $500 billion more on energy from foreign suppliers. The U.S. economy would take a hit:
- U.S. GDP would decline by a cumulative $700 billion through 2030.
- Over $9 billion in government revenue, including funding for state education and conservation programs, would be at risk.
- Nearly 1 million jobs would be lost by 2022, with top production states suffering significant losses. Environmental progress would be stalled:
- Coal use would increase by 15 percent by 2030.
- CO2 emissions would increase by an average of 58 million metric tons and keep rising to represent a 5.5-percent increase in the power sector by 2030.
The analysis comes on the heels of a newly released poll that shows two-thirds of voters in key battleground states and other states would be more likely to vote for candidates who support access to natural gas and oil produced in the U.S., and 93 percent of those registered voters believe it is important for the U.S. to produce enough energy to avoid being dependent on other countries.
For more information, visit www.txoga.org or call (512) 478-6631.
