The Incredible Economic Opportunities of Offshore Energy Exploration
October 1, 2018
Our outer continental shelf is teeming with potential energy reserves. Harnessing them could be a great boost to American prosperity and national security.
American economic prospects appear increasingly bright. Today, the United States leads the world in the production and refinement of natural gas and oil, delivering major economic benefits to consumers and manufacturers. But unwarranted fear and outdated regulations keep 94 percent of the U.S. Outer Continental Shelf (OCS) closed to energy production, limiting our country’s economic potential and the enhanced national security that comes with it. Boosting offshore exploration would provide economic benefits to American coastal states and local economies, and it could lift the U.S. economy as a whole, too.
Based on current government projections, natural gas and oil will meet an estimated 60 percent of U.S. energy needs by 2040, and responsible offshore development represents one of the best untapped opportunities to sustain, supply, and safeguard America’s future energy security. In a good first step, Secretary of the Interior Ryan Zinke recently announced a proposal to open much more of the OCS to exploration. We should move forward quickly but responsibly to take advantage of the estimated 90 billion barrels of oil and 300 trillion cubic feet of natural gas in potential offshore reserves. In the coming decades, as the global population continues to grow and countries in the developing world become wealthier, worldwide energy demand is projected to jump almost 30 percent. If the U.S. places itself as a leader in the sector, it could reap the economic gains for decades to come.
According to a study commissioned by the American Petroleum Institute (API), opening the Atlantic OCS alone could generate nearly 265,000 thousand new jobs and $22 billion each year in private investment. Estimates suggest that federal and state governments could generate $6 billion a year in new revenue within 20 years of the initial lease sale. While exact state revenues will depend on revenue sharing agreements, coastal states ranging from Florida to Maine could see substantial economic benefits...
Read entire article at National Review.
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