Socioeconomic Impacts Likely to Result from Initial Oil and Gas Projects in Frontier Areas

OCS oil and gas activity historically has been concentrated in a small number of OCS planning areas, in particular the Central and Western Planning Areas in the Gulf of America, and the Southern California Planning Area, with only limited activity in other planning areas. Given this fairly targeted spatial focus, detailed analyses examining the spatial distribution of the socioeconomic effects associated with OCS oil and gas activity have not been conducted for several decades, if ever, for the majority of OCS planning areas. BOEM therefore lacks information that could inform policymakers and the public of the potential economic effects of offshore oil and gas activities in these areas, in the event that these areas were leased and developed. To meet this analytical need, BOEM has developed a set of narrative descriptions of the nature, level, and pattern of socioeconomic effects that may result from each stage of an OCS oil and gas development project in frontier planning areas. For each frontier area, this report distinguished between economic impacts realized locally and impacts realized in more distant areas. This distinction is necessary because companies that provide support for highly specialized, costly offshore oil and gas activities tend to be located near centers of current offshore activity. The pattern of economic impacts will ultimately depend on the composition and size of the local economy and labor force as well as the existing available infrastructure. The report finds that frontier areas do share much in common in terms of the pattern of economic impacts likely to result from an offshore oil and gas project, but also highlights impacts unique to individual regions or planning areas. Development in individual frontier areas could lead to significant economic impacts, with the most significant impacts realized during the exploration and development phases of a project. While a large portion of these impacts would likely be realized outside the local area (in onshore areas near OCS planning areas with existing offshore oil and gas activity), this geographical distribution pattern varies by project phase and will depend on the number of projects developed in a frontier area and its neighboring frontier areas. In some areas, increased demand for critical services such as healthcare, childcare, and schooling could put strain on local social infrastructure.

USD: $635,889

2020-09-23 → 2023-12-31