WASHINGTON — An environmental advocacy group says tourism and fishing deliver $204 billion annually to coastal economies along the Pacific, Atlantic and Florida Gulf shores – about four times the value of the estimated oil and gas that could be recovered every year from proposed offshore drilling nearby.
The study, prepared by Environment America, boils down the fierce and emotional fight over offshore drilling into a dollar-based analysis.
Michael Gravitz, the report’s author, contends the numbers show that “the potential returns from offshore drilling are not worth the risk” of another oil spill that could contaminate reefs near Florida and salmon-rich Pacific waters.
“Our research makes it clear that clean beaches and oceans are worth much more than drilling for the last drops of oil off our coasts,” Gravitz added.
Oil and gas industry leaders have argued that the value of the actual commodities that can be extracted only shows part of the picture – and overlooks the added spending tied to offshore drilling activities, from the salaries of rig workers in Louisiana and Texas to the pipes built in Rust Belt manufacturing plants.
The government’s estimates of recoverable oil and gas also repeatedly have been proved low, as drilling techniques advance and there are improvements in the geological testing that can identify underground reservoirs.
The analysis relies heavily on federal government data about commercial fish sales, the annual revenue from tourism in coastal counties and recreational fishing in those regions to calculate the economic impact of a nearby oil spill.
After BP’s Macondo well blew out in April, triggering an oil spill that gushed 200 million gallons of oil into the Gulf of Mexico, hotel vacancies jumped and charter boat bookings dropped along the Gulf coast.
The result, according to a private study for the U.S. Travel Association, will be at least $7.6 billion in lost tourism revenue.
Most of the nation’s offshore drilling now is done in the Gulf. But just weeks before the Macondo spill, President Barack Obama announced plans to expand offshore drilling along the mid- and south-Atlantic coast, as well as in the Pacific Ocean and the eastern Gulf of Mexico.
According to Environment America’s analysis:
In coastal counties along the mid- and south-Atlantic, tourism accounts for $33.5 billion annually and commercial and recreational fishing are valued at an additional $10.26 billion per year – for a total of $43.76 billion.
The value of estimated offshore oil and gas in the mid- and south-Atlantic is about $4.1 billion a year, based on government estimates of the economically recoverable reserves over a 25-year production cycle, oil prices at $80 per barrel and natural gas selling at $3.65 per thousand cubic feet.
For counties along the Pacific Coast, tourism brings in $61.98 billion each year, and fishing generates another $3.98 billion annually – for a total of $65.96 billion.
The value of estimated oil and gas in the Pacific is $34.2 billion annually.
For counties on the west coast of Florida, tourism accounts for $25.4 billion annually; fishing represents $14.07 billion – for a total of $39.47 billion each year.
The value of estimated oil and gas in the eastern Gulf of Mexico is $11.3 billion annually.
Estimates for other coastal areas, including the northern Atlantic coast, bring the totals to $204 billion for tourism and fishing versus $55 billion for oil and gas, according to the study.
Jack Gerard, president of the American Petroleum Institute, has said that “exploring for and developing our nation’s offshore resources could help generate more than a trillion dollars in revenues and create thousands of jobs to add to the already 9.2 million jobs supported by today’s oil and natural gas industry.”
Offshore drilling foes have seized on tourism and recreational revenue in making their arguments against expanded coastal production – especially in the wake of the Macondo disaster that destroyed the Deepwater Horizon drilling rig, killed 11 workers and triggered the spill.
Sen. Robert Menendez, D-N.J., argues that even if offshore drilling is barred off his state’s shores, a spill farther south could migrate north, threatening New Jersey beaches.
Senators from the West Coast also united to propose a ban on drilling in federal Pacific waters, because, they said, the risks are too great.
Yes, I’m sure tourism and recreational fishing are big ticket items to the Gulf’s economy.
But if the supply of oil is further restricted, that is going to lead to higher prices, and fewer tourists and fishermen will be willing to pay high gasoline prices for pleasure activities.
Tourism generates billions, however the value of gulf oil plus the value of what we use it for is immeasurable…sorry Environmental America your spin on this doesn’t have credibility.
“Green group says tourism, fishing are worth more than oil.”
This is a ridiculous statement. They are not comparable. One is comprised of discretionary income, the other is in-discretionary. If/when we have hyper inflation, the need for ENERGY will remain the same and the discretionary decision to sit on the beach sipping a cool one will be replaced by jogging to the grocery with a wheel barrow full of money before you get popped by a roving gang member.
The October issue of National Geographic contradicts this group’s study. It says that Offshore Drilling brings in more money, but less jobs, while tourism and fishing support more jobs, but bring in less money. A study by the US Travel Association isn’t news. It’s an opinion piece designed to support their cause and should be suspect a reported as such.
What is the value to economy of the entire nation for the price of oil to be below $100 a barrel?
A bit of irony, on Environment America’s website they state, “But today our oceans are in trouble” and they list “destructive overfishing” as one of the causes.
Yeah, so they want to stop drilling in the Gulf and focus on commercial fishing. Then when all the fish are gone, they will be pulling a Homer Simpson… “Doh”
Does anyone think fishing, tourism, and off shore oil production can not all occur simultaneously ? These industries have worked well for decades. Offshore rigs are destinations for many scuba divers due to the fish below the rigs.
People that live along the Mississpi, Alabama gulf coast reported there was usually no oil on their beaches, yet vactioners were scared away by the media’s constant environmental disaster reporting.
A reasonable person might realize the media did more to damage the the 2010 gulf coast vacation season than the oil spill.
Best wishes !
How will you reach your fishing and tourism destination when the greenies get their way? Sailboat? Electric car? On the back of a Unicorn?
Completely deluded people living off taxpayer dollars and grants.
Get ready for the libbies to start screaming about Big Oil gouging for more profits when the lost production from the gulf as a result of the moratorium causes prices to spike.
You can’t have it both ways.
This is a gross oversimplification an not true for 90% of Texans. I am always suspect of any study, as we all should be. So many questions about the scientific veracity of the report are not explained, which makes it relatively worthless IMHO.
I guess the moral of this story is that oil, specifically GoM oil produced from Texas, Louisiana and Mississippi, should be priced higher. After all, bottled water priced at ~$1.00/bottle comes to around $8.00/gallon! And water falls from the sky for free. LOL
This is not an apples-to-apples comparison, but then such a comparison would not support their claim. First, they compare the value of money spent by tourists and commerical fishing against the commodity price of oil and gas. They exclude the money spent by oil companies to fund high-paying jobs that are suppported by drilling. Second, most offshore drilling occurs in a relatively small area off our coasts (TX to AL and S. CA) yet the tourism and fishing claim is open to all our coastline (Pacific, Gulf, and Atlantic), most of which is closed to drilling.