Report: Significant Economic Benefits Seen from Atlantic Oil, Gas Devt
Atlantic OCS oil and gas activity would have the largest employment impact on North Carolina and South Carolina, which have strong high-tech manufacturing industries, and Virginia, which has large dry docks and companies that could supply equipment for offshore development. The study didn’t specifically examine with oil and gas job creation could offset defense cuts made to Virginia’s workforce due to sequestration, but a new job created is new a job, said Luthi.
North Carolina would see cumulative spending of $26.4 billion from 2017 to 2035, over 55,000 jobs in 2035 related to Atlantic oil and gas activity, over $4 billion in contributions to the state economy, and nearly $4 billion in state government revenue from 2017 to 2035. South Carolina could see over $15.5 billion in spending, over 35,000 jobs created, approximately $2.7 billion in economic contributions and over $3.7 billion in cumulative state government revenue from offshore oil and gas activity.
Atlantic OCS activity would result in over $14 billion in spending in Virginia from 2017 to 2035, over 24,000 jobs in 2035, over $2.1 billion in economic contributions, and over $1.8 billion in cumulative state government revenue. The amount of revenue that states would earn depends upon legislated federal/state sharing agreements; the report assumes 37.5/62.5 percent state/federal revenue sharing. The proportion of actual revenue going to state governments would be determined by future legislation.
North Atlantic states such as Massachusetts, Maine and New York also are expected to experience employment increases of at least 10,000 by 2035 thanks to Atlantic OCS oil and gas activity.
“The share of incremental employment within the Atlantic coast region is anticipated to steadily grow as the proportion of goods and services that are supplied locally increases,” QUEST said in the report.
States all along the Atlantic Coast, including Florida, Rhode Island, Connecticut and New Jersey, are also expected to see benefits from oil and gas activity offshore the eastern United States.
Industries directly involved in oil and gas such as mining, which includes oil and gas, manufacturing, professional, scientific and technical services and construction are expected to see the largest employment effects with 125,000 jobs created in 2035. Forty-five thousand of those jobs will be in the oil and gas sector.
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