An important new analysis supports what the oil and natural gas industry has been saying for some time: Drilling on public lands now closed to development could boost U.S. employment, economic growth and revenue to federal, state and local governments over both short- and long-term horizons.
Key details from the Institute for Energy Research study conducted by Dr. Joseph Mason, a professor at LSU and the University of Pennsylvania’s Wharton School:
•$127 billion in increased gross domestic product per year for the next seven years and a cumulative $14.4 trillion increase in economic activity over the next 30 years.
•552,000 jobs created over the next seven years, totaling 1.9 million over the next 30 years.
•$32 billion in annual wage increases over the next seven years, with a cumulative $3.7 trillion increase over a 37-year cycle.
•$2.7 trillion more in tax revenues to the federal government over the next 37 years.
•$1.1 trillion in state and local tax revenues over the next 37 years.
These are startling numbers, to be sure. Mason and his team built on a Congressional Budget Office (CBO) analysis of potential lease revenues by estimating larger effects of economic output, wages, jobs of new access to oil and natural gas reserves on federal lands. The report: