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The Economic Impact of the Gulf of Mexico Offshore Oil and Natural Gas Industry
and the Role of the Independents
A Special Study by IHS Global Insight
Exclusion of independents would exact a heavy toll in lost jobs, government revenues, and economic value.
In July 2010, Cobalt International Energy, Inc. commissioned IHS Global Insight to undertake an independent study that measures the total economic contribution of independents to Gulf of Mexico activity. The study presents a context for understanding the economic significance of the offshore Gulf of Mexico and the expected costs that would result from independents withdrawing from the marketplace.
An analysis by IHS Global Insight of the economic contribution to the Gulf States from offshore oil and gas development in the Gulf of Mexico shows that independent oil and gas companies account for about half of the nearly 400,000 jobs; $70 billion in economic values; and $20 billion in federal, state, and local revenue generated by the industry in 2009.
The study forecasts that by 2020 an exclusion of the independents from the Gulf of Mexico would eliminate 300,000 jobs and result in a loss of $147 billion in federal, state, and local taxes from the Gulf region over 10 years. If the independents are excluded just from the deepwater, the losses would be 265,000 jobs by 2020 and $106 billion in tax revenues over the
10-year period.
The actual federal tax losses would be larger because the economic analysis only includes the Gulf region (Louisiana, Texas, Mississippi, and Alabama), not the revenue impact on income earned elsewhere in the United States from manufacturing and investment activities related to the Gulf. To download the complete study, click here.
The economic analysis has been conducted by the regional economics team from IHS Global Insight. Its expertise includes the economic impact, tax implications, and job-creation dynamics within multiple sectors core to national, state, and local economies. In this capacity, IHS Global Insight helps governments and companies interpret the impact of proposed investments, policies, programs, and projects. The study draws on the oil and gas expertise of IHS Cambridge Energy Research Associates (IHS CERA) and the oil and gas databases of IHS-the most extensive and comprehensive in the world.
Download the study:
The Economic Impact of the Gulf of Mexico Offshore Oil and Natural Gas Industry and the Role of the Independents
Press Release — 22 July 2010
For more information, contact:
Brendan O'Neil
IHS Global Insight
Tel: +1 202 481 9239
E-mail: brendan.oneil@ihsglobalinsight.com
Richard Fullenbaum
IHS Global Insight
Tel: +1 202 481 9212
E-mail: richard.fullenbaum@ihsglobalinsight.com
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