9/17/2014 — Developing Virginia’s off-shore gas and oil production would result in up to 32,000 new jobs and produce up to $526 million in royalty payments and $119 million in state and local taxes. That’s the conclusion of a new study released today by the Thomas Jefferson Institute for Public Policy.
The study, conducted by Dr. Timothy J. Considine, Distinguished Professor of Energy Economics at the University of Wyoming’s School of Energy Resources, looked at the financial impact of off-shore oil production along the Atlantic seaboard. A companion paper, written by Jefferson Institute chairman and president Michael W. Thompson, used Considine’s data to focus on Virginia’s potential.
Thompson noted production would be a “win-win” for Virginia’s taxpayers.
“Here in Virginia, with the likelihood that the medium to high estimates for gas and oil production can be achieved, in 20 years we can see between 16,500 and 32,100 jobs created. This will also produce between $270 million and $526 million a year in royalty payments and between $61 million and $119 million in new state and local taxes,” Thompson noted. “These monies can go a long way in improving the Hampton Roads transportation network.”
“Virginia not only can benefit from the gas and oil that can be found off our coast,” Thompson continued, “but our natural deep water port gives us the potential to bring much of this raw product to our shores for refining and transporting throughout our country and overseas. Virginia can truly become the ‘Energy Capital of the East Coast’ where thousands of new jobs can be created and our nation’s economic future can be made more secure.”
Michael W. Thompson
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