The American Petroleum Institute (API) has released a new report warning of a potential significant loss of American jobs, reduced US oil and natural gas production, and diminished revenues for federal and state government.
The report, authored by energy advisory firm Calash, is critical of proposed modifications by the Customs and Border Protection Agency (CBP) to rulings related to the use of Jones Act vessels in offshore oil and natural gas activity.
The proposed changes, outlined by US Department of Homeland Security in January, could potentially cost many jobs, reduce US oil and gas production, and cut federal and state government revenue, the Calash report said.
"The study also concludes that these changes would have an abrupt negative impact on oil and natural gas development and investment in the Gulf of Mexico, further impacting consumers and businesses and substantially decreasing government revenue," said API Upstream and Industry Operations Group Director Erik Milito.
According to Calash, the impacts of CBP's proposal could include:
- Losses of 30,000 industry supported jobs in 2017 with as many as 125,000 jobs lost by 2030. The Gulf of Mexico states are projected to be the most impacted by the job losses
- A 23 percent fall in US oil and natural gas production from 2017-2030
- An annual $1.9 billion fall in government revenue from 2017-2030
- An annual $5.4 billion fall in offshore oil and natural gas spending, and
- Cumulative lost GDP of $91.5 billion from 2017-2030.