The American Petroleum Institute (API) and the National Ocean Industries Association (NOIA) have released a new report that highlights the potential benefits of expanding energy development in the New South-Central region of the Gulf of America. The report, titled 'Unlocking the New South-Central Gulf of America for Energy Development: Potential Economic Impacts and Opportunities,' has been prepared by Energy and Industrial Advisory Partners (EIAP).
The report's findings suggest that extending responsible oil and natural gas development in the region would generate a significant source of new domestic energy supply, strengthening America's energy security and supporting thousands of jobs across the Gulf Coast.
One of the key areas of focus for the report is Program Area B in the South-Central Gulf of America, which is proposed to be opened to leasing beginning in 2029. This move would not only attract new investment but also sustain long-term growth in one of the world's most prolific offshore basins.
The report evaluates the potential impacts of opening Program Area B and finds that it could support over 133,000 jobs by 2040 through offshore development, supply chain activity, and broader economic growth.
In addition to job creation, the report also highlights the potential for significant capital investment in the region. By 2040, $13.1 billion in capital investment is expected to be tied to exploration, development, and operations.
The report's findings also suggest that expanded energy production could help meet rising demand with secure American supply. In fact, more than 470,000 barrels of oil equivalent per day are expected to be produced by 2040.
Beyond the economic benefits, the report also notes that these benefits would extend well beyond offshore production, supporting workers and businesses while leveraging infrastructure and workforce capabilities across the Gulf.
The report's release comes at a time when the energy industry is facing increasing scrutiny over its environmental impact. However, the API and NOIA argue that responsible development can help mitigate these concerns while still delivering significant economic benefits.
Overall, the report provides a compelling case for expanding energy development in the New South-Central region of the Gulf of America. As policymakers consider their next steps, it will be important to carefully weigh the potential benefits against any potential risks or challenges.
The report's findings underscore the importance of responsible energy development in strengthening America's energy security and economic growth.
