U.S. Arctic Development Benefits All Americans
Developing America’s oil and gas resources in the Arctic benefits Alaska and the entire nation.
Significant energy resources to power America
- 84% of the undiscovered oil and gas resources in the Arctic are in offshore areas.
- The U.S. Arctic is estimated to hold 34 billion barrels of oil and 60 billion barrels of oil equivalent of natural gas.
- 64% of the conventional resources in the U.S. Arctic are offshore.
- U.S. oil potential in the Arctic represents about 15 years of U.S. net oil imports.
Energy production is critical to Alaska’s economy
- Oil and gas is Alaska’s largest non-governmental industry.
- In 2013, the industry accounted for 33 percent of all wage and salary employment in Alaska (111,000 out of a total of 335,000) and 38 percent of all wages ($6.45 billion in wages out of total of $17.1 billion).
- Oil and gas taxes provide about 90% of Alaska’s general revenue.
Arctic energy has been a pillar of American energy security for decades.
- Prudhoe Bay, North America’s largest oilfield, was discovered in the 1968.
- The Prudhoe Bay discovery gave birth to the Trans Alaska Pipeline System (TAPS), allowing Arctic energy resources to benefit America at large.
- TAPS has transported over 17 billion barrels of oil and natural gas liquids since June 1977, and throughput peaked at 2.2 million barrels of oil per day – 25% of U.S. domestic production – in the late 1980s.
- TAPS throughput has dropped as oil production in Alaska has fallen, and it is now over two-thirds empty and declining at an average rate of 6% every year.
- In 2014, TAPS transported an of 500,000 barrels of oil per day, a mere fraction of past volumes.
- If TAPS throughput continues to fall, the pipeline will be ordered to shut down, forcing U.S. refineries to find more expensive supplies of crude, which would lead to higher gasoline prices.
- Transporting offshore oil through TAPS would extend the life of this critical piece of infrastructure; create new jobs, while increasing state revenues by $1.2 billion.
Arctic offshore development & Alaska’s economy
Developing Alaska’s offshore continental shelf areas is estimated to generate over a 50-year period (in 2007 dollars):
- An annual average of 35,000 jobs in Alaska;
- Total estimated payroll of $72 billion;
- $15 billion in potential revenues to the State of Alaska; and
- $4 billion in property taxes to local governments.
All of America benefits from Arctic energy development
Developing Alaska’s offshore resources is estimated to generate over a 50-year period (in 2010 dollars):
- An annual average of 54,700 jobs nationwide;
- Total estimated payroll of $145 billion;
- $193 billion in government revenues at $65/barrel: $167 billion to the federal government, $26 billion to state and local governments:
- $97 billion in federal lease revenues; and
- $51 billion in federal corporate income tax revenue.