Oil Industry: Upcoming Legislation Will Kill Jobs and Harm the Economy
Here’s the internal American Petroleum Institute analysis that breaks down the economic effects that regulations proposed in light of the Deepwater Horizon oil spill could have on the oil industry.
The analysis presumes that oil spill response legislation and a moratorium on deepwater drilling in the Gulf will significantly increase the cost of future exploration and drilling. That increase cost could create an economic disincentive to drill in deep water off the Gulf coast, the analysis says. If deepwater drilling were to stop “due to sub-economic returns,” as the analysis puts it, API says the country would face the following economic impacts:
- 93,000 lost jobs in the oil and natural gas sector every year through 2035
- 82,000 lost jobs in sectors that depend on the oil and gas industry every year through 2035
- A reduction in GDP of $20 billion a year, totaling $500 billion over the next 25 years
- A 27 percent reduction in long-term domestic oil production
- A 19 percent increase in long-term foreign oil imports
The analysis does not make API’s methodology for coming up with these figures clear, but the document is valuable for anybody looking to get a look at the oil industry’s main talking point going forward: oil industry regulation will kill jobs and harm the economy.