Florida Petroleum Council study finds offshore leasing could provide state with $155 mln in tax revenue

The Florida Petroleum Council recently released a report that finds Florida could gain $155 million annually in tax revenue through offshore leasing in the Atlantic Outer Continental Shelf (OCS) and the Eastern Gulf of Mexico.

The study examines the additional non-bonus and royalty revenue, such as personal and corporate income tax, property tax and sales taxes, that offshore-related natural gas and oil activities in Florida could generate.

The report, titled The Economic Impacts of Allowing Access to the Atlantic OCS and Eastern Gulf of Mexico for Oil and Natural Gas Exploration and Development Supplement: Projected State, Local, and Federal Tax Receipts, was prepared by CALASH on behalf of the American Petroleum Institute (API).

“The projected tax revenues outlined in this new study of potential federal offshore oil and natural gas production and activity could mean substantial investments in Florida such as in areas like education and opportunities to rebuild infrastructure,” Florida Petroleum Council Executive Director David Mica said. “This opportunity to inject one billion dollars in increased state and local revenues, coupled with the additional billions of dollars for the economies of coastal states from previous studies, is critical for any plans to help improve quality of life for Florida’s residents and the overall future of the state.”

Over a 20-year period, the study projects that cumulative state and local tax revenues due to industry spending could total $2.5 billion.

Earlier API reports found that contributions to the overall economy from Atlantic OCS and Eastern Gulf of Mexico oil and natural gas exploration and development activity in Florida could reach more than an additional $5 billion within 20 years and support more than 60,000 jobs annually in Florida within the same period.