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The offshore oil and natural gas industry spends billions of dollars annually in the search for, and production of, oil and gas in the world’s oceans. US offshore production accounts for more than 27% of the country’s oil production, and 15% of its natural gas production. Each year, offshore energy development contributes between $4 and $6 billion in revenues to the federal treasury. Millions are also paid to states and local communities. The federal offshore produced about 500 million barrels of oil and about 3 trillion cubic feet of gas in 2006.
In addition to activities in areas under US jurisdiction, such as Alaska and the Gulf of Mexico, the US has substantial interests in offshore oil and natural gas development activities globally, given the nation’s significant reliance on imported oil. US oil and gas production companies, as well as drilling, equipment and service companies, are important players...
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