A recent study conducted by IHS-CERA, an energy think tank, states that the government’s delays in approving permits for deep water oil drilling in the Gulf of Mexico is hindering the creation of thousands of jobs and millions of dollars in government revenues.
Their report claims that if the federal government would approve the permit applications they have before them, it would create 230,000 jobs and over $44B in gross domestic product by 2012.
Dan Simmons of the Institute for Energy Research said the government would also reap millions of dollars in all of the taxes and fees that the oil companies pay. He pointed out that the government actually makes more on the oil production than the oil companies do.
Since the Deep Water Horizon oil disaster in the Gulf of Mexico, the government has approved less than 20 permits and only 5 of them were new permit applications, while the rest were renewals of applications approved prior to the disaster.
Along with the increase of jobs and government revenue, the IHS-CERA study says that if the permit backlog was reduced and most applications approved that it would result in an additional 400,000 barrels of oil per day to US oil production.
One has to wonder in a time when millions of Americans are seeking jobs, the government needs more revenue, and America needs more oil, why is the current administration so slow and hesitant in approving the permit applications to drill in the Gulf of Mexico.