New Report Finds SC Poised to Benefit Big from Offshore Resource Development

NEWS RELEASE New Report Finds SC Poised to Benefit Big from Offshore Resource Development 

Columbia, S.C. – Today, Palmetto Policy Forum (PPF) released a new report titled SC’s Offshore Opportunity: Economic & 

Environmental Impacts of Atlantic Energy Exploration.   

On July 18, 2014 the Bureau of Ocean Energy Management (BOEM), a division of the U.S. Department of the Interior,

announced that it would allow for modern surveys of the Mid‐ and South‐Atlantic coast to update 40‐year old data on

offshore petroleum resources. This type of advanced seismic mapping will yield a far more accurate picture of offshore oil

and natural gas reserves than what is currently available. The BOEM announcement could present significant opportunity

for South Carolina, perhaps as soon as 2018.   

Forum President Ellen Weaver said, “Palmetto Policy Forum exists to offer well‐researched information for South Carolina 

citizens and decision‐makers.  Our new report balances both possible economic and environmental impacts and concludes 

that South Carolina could be the 2nd biggest state beneficiary of a potential Atlantic‐based energy production boom.  It’s hard 

to overstate the tremendous opportunity this presents for our State.”   Key report findings include: 

 At peak production in 2035, capital investment could reach $2.7 billion annually with up to nearly 46,000

new jobs

 Lease and royalty payments to the state could exceed $1 billion dollars in 2035 with $163 million

generated in state and local taxes.

 Accounting for the cost of carbon impacts and the unlikely event of a spill, the ratio of benefits to costs is

2:1.

 As home to major manufacturers like BMW, Honda, Daimler, Boeing, Bosch and others, the structure of

South Carolina’s economy is likely to foster the development of oilfield equipment manufacturing as well as other supplies for the energy industry. South Carolina’s manufacturing workforce would also be an attractive factor in decisions to build or expand this manufacturing capacity within the state.

 South Carolina has two major ports that would likely play a prominent role in offshore oil and gas

production. Using the multipliers for economic impacts on ports implies that offshore oil and gas

development would create more than 1,174 jobs for the Georgetown and Charleston ports in 2035 under the high production scenario. Additional employment would be created as these ports invest in new capacity and handle larger volumes of equipment and materials for an offshore oil and gas industry.

Several key South Carolina leaders offered thoughts on the significance of the Forum’s report:

Including:  U.S. Senator Tim Scott; U.S. Representative Joe Wilson; Representative Jeff  Duncan;

U.S. Representative Tom Rice; and SC Representative Alan Clemmons (Horry County.)