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New report forecasts damage to American economy, jobs, and energy production from new Jones Act rulings

Brooke Sammon | 202.682.8114 |

WASHINGTON, April 4, 2017 – API released a new report today projecting significant and damaging impacts from the Customs and Border Protection Agency’s (CBP) proposed modifications to its rulings related to the use of Jones Act vessels in offshore oil and natural gas activity, including the potential for significant loss of American jobs, reduced U.S. oil and natural gas production, and diminished revenues for federal and state government. 

“This report projects that the proposed changes to these long-standing rulings would have widespread negative impacts on American jobs and the national economy, as well as a damaging effect on our national energy security,” said API Upstream and Industry Operations Group Director Erik Milito. “The study also concludes that these changes would have an abrupt negative impact on oil and natural gas development and investment in the Gulf of Mexico, further impacting consumers and businesses and substantially decreasing government revenue.”

According to the Calash economic report, the impacts of CBP’s proposal may include:

  • Losses in the range of 30,000 industry supported jobs in 2017 with as many as 125,000 jobs lost by 2030. The Gulf of Mexico states are projected to be the most impacted by these job losses;
  • Decrease in U.S. oil and natural gas production in the range of 23% from 2017-2030;
  • Decrease in government revenue more than $1.9 billion per year from 2017-2030;
  • Decrease of offshore oil and natural gas spending in the range of $5.4 billion per year and;
  • Cumulative lost GDP of $91.5 billion from 2017-2030.
“President Trump’s recent executive order on energy independence was an important step toward increasing American competitiveness, and these proposed changes completely undermine the order’s purpose by placing unnecessary and harmful burdens on domestic energy production,” said Milito. “These proposed changes to the rulings should be immediately withdrawn in order to protect U.S. energy security and allow for consumers and businesses to continue benefitting from America’s energy renaissance.”

The report by Calash is available on API’s website.

API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 30 million Americans.
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