Wednesday, February 03, 2016

Study: Well control rule will result in loss of jobs, tax money

Hundreds of thousands of jobs and billions of dollars in tax revenues could be lost if a federal regulation revamping offshore equipment standards and well designs goes into effect, according to an economic study released Monday. By 2030, exploration would drop by 55 percent, production by 35 percent, and 105,000 to 190,000 jobs mostly in Louisiana and Texas would be lost, according to the study by economic think tank Wood Mackenzie. Assuming $80 per barrel of oil, the study estimates $70 billion in lost tax revenues. “Because the prospect inventory on currently held leases will likely be condensed and fewer leases will be acquired in upcoming bid rounds, it is anticipated the production gap will continue to widen and could be irreversible post-2030, further limiting jobs, GDP and taxes,” the study’s executive summary states...more

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