A study of the social, economic & environmental costs of drilling moratorium

In recent decades our nation has restricted a significant expanse of federal onshore and offshore Outer Continental Shelf (OCS)1 lands from natural gas and oil exploration and production.2 The federal government estimates these lands may contain 285 Trillion cubic feet (Tcf) of natural gas and 46 Billion barrels of oil (Bbo) of undeveloped energy resources.3 This study: 1) updates4 the nation’s onshore and offshore natural gas and oil resource base in moratoria and non-moratoria areas; and, 2) using the updated resource estimates, assesses the social, economic and environmental impacts to the nation of maintaining the moratoria in the upcoming decades.5 The findings reveal an energy future for the nation that increases the cost and restricts the availability of domestic oil products and natural gas. Primary residual impacts: reduce real consumption levels; decrease gross domestic product (GDP); increase dependence on foreign oil and natural gas imports; increase payments to exporting nations; decrease real industrial shipments; elevate energy costs; decrease employment levels; decrease household income; and, produce a mix of negative and positive environmental effects.6...more