WASHINGTON, Feb 23 - Expanding energy exploration and production to U.S. offshore areas that were off limits until recently could result in more than a trillion dollar goverment windfall and millions of new jobs, a report said on Monday.
Oil and natural gas development in newly opened offshore areas will generate $1.7 trillion in federal tax revenue and almost $600 million in state and local taxes throughout the life span of the new fields, according to the study conducted by the American Energy Alliance.
The increased offshore energy production would also support 1.2 million jobs annually.
"Those benefits would be realized without any increase in direct government spending," the report said. "Rather, increased OCS output would refill national, state, and local government coffers--currently depleted by real estate and credit crises--with additional government outlays."
The American Energy Alliance advocates for free-market energy and environmental policies.
A longstanding moratorium on offshore drilling in most U.S. coastal areas outside of the Gulf of Mexico expired last year.
Near the end of President George W. Bush's administration, the U.S. Interior Department issued a draft five-year energy exploration leasing plan including previously banned areas along the East Coast and off the coast of California.
Under President Barack Obama, the new Interior Secretary Ken Salazar recently extended the public comment period on the Bush leasing proposal by 180 days, providing a total of 240 days to review the drilling plan through September.
Some Democrats and environmental groups have called for placing additional limitations on offshore drilling or reinstating the ban completely.
"Before renewing those restrictions, however, it makes sense to take a hard look at not only the oil reserves that are held back, but the total potential economic growth that will be foregone," the report said.
The American Energy Alliance based its conclusions on data gathered from the Interior Department, Commerce Department and Treasury Department.
Interior's Minerals Management Service estimates that the Outer Continental Shelf holds 86 billion barrels of oil and 420 trillion cubic feet of natural gas that have yet to be discovered.
Offshore areas could contain more oil and gas, especially since the areas that were under the moratorium have not been explored in 25 years.
Oil and natural gas development in newly opened offshore areas will generate $1.7 trillion in federal tax revenue and almost $600 million in state and local taxes throughout the life span of the new fields, according to the study conducted by the American Energy Alliance.
The increased offshore energy production would also support 1.2 million jobs annually.
"Those benefits would be realized without any increase in direct government spending," the report said. "Rather, increased OCS output would refill national, state, and local government coffers--currently depleted by real estate and credit crises--with additional government outlays."
The American Energy Alliance advocates for free-market energy and environmental policies.
A longstanding moratorium on offshore drilling in most U.S. coastal areas outside of the Gulf of Mexico expired last year.
Near the end of President George W. Bush's administration, the U.S. Interior Department issued a draft five-year energy exploration leasing plan including previously banned areas along the East Coast and off the coast of California.
Under President Barack Obama, the new Interior Secretary Ken Salazar recently extended the public comment period on the Bush leasing proposal by 180 days, providing a total of 240 days to review the drilling plan through September.
Some Democrats and environmental groups have called for placing additional limitations on offshore drilling or reinstating the ban completely.
"Before renewing those restrictions, however, it makes sense to take a hard look at not only the oil reserves that are held back, but the total potential economic growth that will be foregone," the report said.
The American Energy Alliance based its conclusions on data gathered from the Interior Department, Commerce Department and Treasury Department.
Interior's Minerals Management Service estimates that the Outer Continental Shelf holds 86 billion barrels of oil and 420 trillion cubic feet of natural gas that have yet to be discovered.
Offshore areas could contain more oil and gas, especially since the areas that were under the moratorium have not been explored in 25 years.
