By Mark Green, special to Statehouse Report | Safely tapping America’s offshore natural gas and oil reserves could provide billions of dollars for the economies of coastal states – a big reason why the needs and voices across entire states, not just their coastal areas, must be considered in the offshore energy conversation.
For example, federal revenue sharing could help transform state economies by sending billions in royalties, rentals and fees to state coffers. By putting revenue-sharing programs in place – like those already working for the states of Alabama, Louisiana, Mississippi and Texas – North and South Carolina, Virginia, Georgia and other states could benefit from offshore energy development. And that’s in addition to industry spending and jobs created that would help boost those state economies.
“Natural gas and oil exploration in the Atlantic could be an opportunity for our state to see much-needed additional economic improvements, investment, and job creation,” South Carolina state Sen. Stephen Goldfinch told a U.S. House hearing last fall. “[I]t is imperative that you remember places like Andrews and Conway, and Georgetown, South Carolina, where the ‘golden egg’ of tourism hasn’t helped eradicate poverty. For those who live in Andrews and Conway and Georgetown, oil and gas would be their ‘golden egg,’ bringing non-seasonal, high-paying jobs … and hope for a prosperous economic future for the generations to come.”
Here’s what that “golden egg” could look like for a sampling of the states, according to economic projections in four regional studies for the outer continental shelf (OCS), recently released by American Petroleum Institute:
North Carolina
- $4.4 billion in federal revenue sharing over a 20-year forecast period, reaching $495 million per year at the end of the study period.
- $36.1 billion in industry spending over the forecast, reaching $3.5 billion per year by the end of the forecast.
- $41.8 billion added to state GDP over the forecast.
- 55,760 jobs gained by the end of the forecast.
South Carolina
- $3.8 billion in federal revenue sharing over the forecast, reaching $445 million per year at the end of the forecast.
- $20.8 billion in industry spending over the forecast, reaching nearly $2.1 billion per year by the end of the forecast.
- $24.1 billion added to state GDP over the forecast.
- 33,604 jobs gained by the end of the forecast.
Georgia
- $544 million in federal revenue sharing over a 20-year forecast period, reaching $58 million per year at the end of the study period.
- $2.7 billion in industry spending over the forecast, reaching $272 million per year by the end of the forecast.
- $3.6 billion added to state GDP over the forecast.
- 4,218 jobs gained by the end of the forecast.
Numbers likes these illustrate big economic opportunity for the states above and others whose offshore areas could be included in a new federal offshore leasing plan now under development. Again, economic benefits of this size compel policymakers to consider the needs of entire states when discussing offshore development.
On average, jobs in the oil and gas industry pay $101,000 in annual salaries. At last fall’s House hearing, former U.S. Sen. Mary Landrieu of Louisiana said natural gas and oil industry employment long has benefited her state. “We have men and women graduating from high school that are going to work in the oilfield and they don’t make minimum wage,” Landrieu said.
Offshore energy is compatible with other ocean uses, including the military. It is safer than it has ever been and is always improving, thanks to technology, industry standards, safety management systems and employee training. No human enterprise is without risk, but industry’s premium on technology and safety – to protect its workers and the environment – properly manages this risk while producing energy and national security benefits for today and decades into the future.
“The Interior’s offshore proposal is the first step in advancing South Carolina’s economic potential and energy security. Offshore energy exploration and development can lead to significant economic growth, the creation of high-paying jobs, and millions of dollars flowing into state coffers to fix our schools, our infrastructure, and build a brighter future for communities all across South Carolina,” said Mark Harmon of the South Carolina Petroleum Council.
This is American energy that should be safely harnessed to benefit all Americans – in coastal states and across the entire country.
Mark Green is editor in Washington, D.C., of Energy Tomorrow, a publication of the American Petroleum Institute.
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We Can Do Better, South Carolina!