The Trump administration wants to open up nearly all the country’s offshore areas for oil drilling, leasing areas off places like Florida and California for the first time in decades, and reversing an Obama-era policy.
Secretary of the Interior Ryan Zinke announced Thursday that his department is planning the largest number of oil-lease sales in U.S. history starting next year. It would open up 90% of offshore land for drilling as part of a five-year plan. It reverses an Obama-era plan that would have kept only 6% of the same acres available for drilling.
The report describes the economic impact of oil and gas industry operations in their entirety in the state of California. It estimates that the industry’s direct output of more than $111 billion generates more than $148 billion in direct economic activity, contributing 2.7 percent of the state’s GDP and supporting 368,100 total jobs in 2015, or 1.6 percent of California’s employment. Additionally, the oil and gas industry generates $26.4 billion in state and local tax revenues and $28.5 billion in sales and excise taxes. Vulnerable user industries of refined petroleum products, like transportation/warehousing, manufacturing and agriculture represent 1.7 million jobs in California with an associated $111 billion in labor income and account for 8.4 percent of the state’s GDP.