The American Petroleum Institute (API) released a study this morning on the negative impact the delays in offshore drilling in the Gulf will continue to have on the US economy and energy security. The analysis by Wood Mackanezie supports what the National Association of Manufacturers has pointed out in the past -– delays in permitting have had and will continue to have detrimental impact on the U.S. economy and domestic energy.
According to the study, an estimated 125,000 jobs can be lost by 2015 and approximately 680,000 barrels of oil a day could be at risk by 2019. The delay on permitting continues even though the moratorium on offshore drilling was lifted in November of last year. This stems from the fact that companies are now faced with new procedures and guidelines in order to secure permits to resume their activities in the Gulf. These requirements mean companies can no longer rely on the old applications which they submitted for a permit. They now have to go back to the drawing board, re-start their application process and go through the steps of applying for a permit all over again.
This continued delay is devastating to the U.S. economy as it has and will continue to cause a great deal of job loss which this country cannot afford, especially with an unemployment rate of 9.4 percent. More delays will only lead to companies leaving the U.S. shores to drill in foreign waters and reduce domestic oil supply. Drilling off the coast of Brazil or West Africa does a lot less to create U.S. jobs than drilling in the Gulf of Mexico.