Ban Would Jeopardize Over 200,000 Gulf Coast Jobs, Millions in Revenue for States

September 9, 2020

AUSTIN – The Texas Oil and Gas Association (TXOGA), Louisiana Mid-Continent Oil and Gas Association (LMOGA) and the American Petroleum Institute (API) today released a new analysis warning of negative consequences from a proposed ban on federal leasing on natural gas and oil development on public lands and waters. The offshore Gulf of Mexico accounts for over 15 percent of U.S. oil production. The analysis projects local economies in the Gulf Coast region would be among the hardest hit areas with more than 200,000 job losses by 2022 and millions of dollars in reduced revenue.

“An affordable and reliable energy supply is essential to a strong America, and banning energy development on federal lands and in offshore waters not only threatens thousands of the best paying jobs but needlessly erases much needed revenue that helps pay for schools and other essential services,” President of the Texas Oil and Gas Association Todd Staples said. “American oil and natural gas is safe, clean and abundant, and misguided policies will only stifle our nation’s energy progress.”

“Louisiana’s oil and natural gas industry has a long history of driving the economies of the Gulf Coast and providing energy security for America,” Vice President of the Louisiana Mid-Continent Oil and Gas Association Lori LeBlanc said. “The impact of a ban on federal leasing would have devastating impacts on the livelihoods of thousands of Louisiana families and on the communities that depend on our tax revenues for critical operating resources for local governments, and protection and resiliency of our coast. At a time when our state needs revenue the most, in the wake of Hurricane Laura, banning leasing in federal waters is backwards policy.”

“A ban on federal leasing and offshore development would have devastating consequences for America’s largest energy corridor, with local communities along the Gulf Coast projected to lose thousands of jobs and millions in state revenue,” API President and CEO Mike Sommers said. “This would be a backwards approach to U.S. energy policy, not only hurting the Gulf Coast region but diminishing America’s role as a global energy leader and undermining environmental progress.”

The analysis, prepared for API by OnLocation, used the same software the U.S. Energy Information Administration (EIA) uses to produce their Annual Energy Outlook. Key projections include:

The impact on states in the Gulf Coast region would be significant:

• States in the Gulf Coast region could lose more than $223 million in revenue, including $65 million for Texas, $95 million for Louisiana, $31 million for Alabama and $32 million for Mississippi.
• Texas, Louisiana, Alabama and Mississippi could lose more than $22 million in funding from the Land and Water Conservation Fund.
• Nearly one million American jobs would be lost by 2022, including more than 200,000 jobs in the Gulf Coast region.
  • Texas would lose nearly 120,000 jobs.
  • Louisiana would lose over 48,000 jobs.
  • Alabama would lose nearly 21,000 jobs.
  • Mississippi would lose nearly 14,000 jobs.

America’s energy security would be at risk: 

• Offshore production for natural gas would decrease by 68 percent and for oil by 44 percent.
• U.S. oil imports from foreign sources would increase by 2 million barrels a day.
• The U.S. would spend $500 billion more on energy from foreign suppliers.

The U.S. economy would take a hit:

• U.S. GDP would decline by a cumulative $700 billion through 2030.
• Over $9 billion in government revenue, including funding for state education and conservation programs, would be at risk.
• Nearly one million jobs would be lost by 2022, with top production-states suffering significant losses.

Environmental progress would be stalled: 

• Coal use would increase by 15 percent by 2030.
• CO2 emissions would increase by an average of 58 million metric tons (MMT) and keep rising to represent a 5.5 percent increase in the power sector by 2030.

The analysis comes on the heels of a newly released poll by Morning Consult showing two-thirds of voters in key battleground states and other states would be more likely to vote for candidates who support access to natural gas and oil produced in the U.S. 93 percent of those registered voters find that it is important for the U.S. to produce enough energy to avoid being dependent on other countries.

Click here to view a summary of the study. Click here for more information on federal leasing.

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Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.

Louisiana Mid-Continent Oil and Gas Association, founded in 1923, is a trade association exclusively representing all sectors of the oil and gas industry operating in Louisiana and the Gulf of Mexico.

API represents all segments of America’s natural gas and oil industry. Its more than 600 members produce, process, and distribute most of the nation’s energy. The industry supports more than ten million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API was formed in 1919 as a standards-setting organization. In our first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability. To learn more about API and the value of oil and natural gas, please visit API.org.