A major moratorium on U.S. domestic oil and gas exploration expired in 2008, yet its extension is now being considered. Thing is, despite vigorous alternative energy efforts, the U.S. will remain extremely dependent on fossil fuels through 2030.
This is even assuming that the U.S. pushes alternative energy at the same time, according to a report on the moratorium by the Science Applications International Corporation (SAIC) and Gas Technology Institute (GTI).
Which means that if renewed environmental bans prevent American energy demands from being met domestically, the country will be forced to import its fossil fuel needs. This could cost nearly $2.4 trillion according to SAIC and GIT’s detailed, publicly available moratorium report.
SAIC & GIT: Accounting for the updated oil and gas resource base, maintaining the moratoria until 2030 will decrease cumulative U.S. GDP by $2.36 Trillion – an average annual reduction of 0.52 per cent.
Environmental concerns about domestic resource development have been well documented. However, a comprehensive integrated analysis of the socio-economic and environmental effects of not developing the moratoria/restricted areas for oil and natural gas has been missing at both national and regional levels.9 What has been needed – and is provided herein – are assessments of key social and economic indicators, including impacts on energy prices and supply, impacts on employment and household income, impacts on industrial shipments and GDP, and the impacts on imported oil and natural gas and the level of payments to OPEC.