By Birmingham Business Journal

A study from IHS Global Insight shows that 300,000 jobs and $147 billion in federal, state and local taxes could be lost in the Gulf state region by 2020 if independent oil and gas companies are excluded from the marketplace.

Currently, independent firms â¿¿ those not connected to a major oil companies â¿¿ represent half of almost 400,000 jobs, $70 billion in economic value and $20 billion in federal, state and local revenue generated by the oil and gas industry in 2009.

They also account for 81 percent of all producing Gulf of Mexico leases and 46 percent of the Gulf⿿s producing deepwater leases, said the study entitled ⿿The Economic Impact of the Gulf of Mexico Offshore Oil and Natural Gas Industry and the Role of the Independents.⿝ IHS Global, an economic and financial analysis and risk assessment service based in Lexington, Mass., conducted the study commissioned by Cobalt International Energy Inc.

If the independent firms are allowed to continue to contribute to the industry through a moratorium or shutdown of offshore drilling, the study shows there could be an increase of 520,000 jobs with an economic impact of $113 billion and tax and royalty revenue will total nearly $267 billion over the 10 year period.

To see other effects listed by the study, click here.

Copyright 2010 American City Business Journals
Copyright 2010