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Gulf Oil Production, Creating an Oil Economy



July 27, 2011 – Comments (0) | RELATED TICKERS: USO

Following the Gulf oil spill, there has been a number of people who have been effected economically. Many locals working within the oil and gas industry lost their jobs or moved jobs elsewhere. However, if drilling were to be brought back, things could change dramatically. According to Christopher Helman, it could create 230,000 more jobs and adds about $44B to the economy. Helman has compiled some great details on this conclusion.  


"The effect would be felt far from the Gulf coast states — with manufacturing centers like Pennsylvania and Ohio enjoying more business. Additionally, IHS-CERA determined that a return to activity levels would generate $22 billion in direct wages, unlock $19 billion a year in pent-up capital investment, and create $6 billion a year in royalties and tax payments.

Then there’s the impact of what all this labor and investment would ultimately produce — an additional 150 million barrels per year of oil from the deepwater Gulf of Mexico alone.

That’s more than twice the amount that the administration agreed to release from the Strategic Petroleum Reserve, and which the administration will eventually need to repurchase from the market and return to the strategic petroleum reserve."


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