API Report: Gulf Drilling Expansion Shows Potential
The American Petroleum Institute (API) and the National Ocean Industries Association (NOIA) released a new report April 30 highlighting the opportunity to strengthen U.S. energy security and economic growth through expanded energy development in the New South-Central region of the Gulf.
The report, prepared by Energy and Industrial Advisory Partners (EIAP), finds that extending oil and natural gas development in the region — as outlined in the Department of the Interior’s proposed five-year offshore leasing program — would generate a significant source of new domestic energy supply, strengthening America’s energy security and supporting thousands of jobs across the Gulf Coast.
“In a volatile global energy environment, the United States is in a stronger position today because of sustained investment in domestic energy production and policies that support access to diverse supply regions within our borders,” API Senior Vice President of Policy, Economics and Regulatory Affairs Dustin Meyer said. “Expanding access to the South-Central Gulf of America creates a new source of secure domestic energy — helping meet growing demand while strengthening our economic and national security.”
“The South-Central Gulf of America represents a natural extension of the Gulf of America’s proven energy ecosystem, with direct access to the infrastructure, workforce and expertise that have made the region a global offshore leader,” NOIA President Erik Milito said. “This study highlights the scale of the opportunity: new production, billions in investment and tens of thousands of jobs. At a time of rising global demand and geopolitical uncertainty, expanding access strengthens America’s long-term ability to produce energy at home, build energy dominance, support our energy workers and keep investment and capital here in the United States.”
The report evaluates the potential impacts of opening Program Area B in the South-Central Gulf to leasing beginning in 2029. Key findings include:
More than 133,000 jobs supported by 2040 through offshore development, supply chain activity and broader economic growth
$11.3 billion in U.S. GDP supported in 2040 from expanded energy production and related investment
$13.1 billion in capital investment and industry spending in 2040 tied to exploration, development and operations
Nearly $1.5 billion in government revenues in 2040 from lease bids, rents and royalties
More than 470,000 barrels of oil equivalent per day in production by 2040, helping meet rising demand with American supply
The report finds that benefits would extend beyond offshore production, supporting workers and businesses while leveraging infrastructure and workforce capabilities across the Gulf.
The Gulf’s existing operations already support hundreds of thousands of jobs and produce roughly two million barrels per day. The Gulf remains one of the world’s most prolific offshore energy basins and one of the lowest carbon-intensity sources of oil globally.
The full report is available at: https://www.api.org/-/media/Files/news/2026/Unlocking-New-South-Central-Gulf-of-America-Economic-Impacts-and-Energy-Development-Opportunities.pdf.
