Policy Shift on Oil and Natural Gas Could Create 1.4 Million New Jobs, Increase Revenue to Government By $800 Billion, Study Says

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Sep 07, 2011, 02:48 ET

WASHINGTON, Sept. 7, 2011 /PRNewswire-USNewswire/ -- U.S. oil and natural gas policy changes could generate more than 1.4 million new jobs, $800 billion in additional government revenue, and 10 million barrels worth of added daily oil and natural gas production by 2030, according to a study by Wood Mackenzie released today by API. New jobs could be added in every state.

"Our industry has kept more than 9 million Americans employed through some of the toughest economic times in America's history, and we created thousands of jobs just last month," said API President and CEO Jack Gerard. "The study shows we could provide another 1.4 million jobs, with as many as one million created in just the next 7 years, and thousands of shovel-ready jobs available next year. It's time our national energy policy let America take advantage of this opportunity."

"The creation of these jobs is within the president's control," Gerard added. "The policy changes involve actions he can take unilaterally. They do not require a super committee of Congress and they do not require new legislation."

The policy changes include opening non-park federal onshore and offshore areas to development where now prohibited, returning permitting in the Gulf of Mexico to historical levels, approving the Keystone XL and other pipelines, and establishing a regulatory environment that permits full development of the nation's oil and gas resources, including those locked in shale formations.

U.S. oil and natural gas consumption would not necessarily increase as a result, according to API. The changes would allow America to produce at home a much larger percentage of the oil and natural gas it consumes, reducing imports. "If the full potential of domestic oil and gas production could be achieved while also increasing imports of Canadian oil, all of America's liquid fuels could come from secure North American sources within 15 years," Gerard said.

Wood Mackenzie is a Scotland-headquartered consulting firm with extensive experience analyzing oil and natural gas industry issues. API sponsored the study.

API represents more than 480 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

SOURCE American Petroleum Institute