Supporting the path to Alabama’s energy recovery

Over the years, families and businesses across Alabama have been able to depend on affordable and reliable energy supplies, reasonable gasoline prices and food costs, lower electric bills and good jobs because of sound energy policies that help meet our demands and economic needs.

Gulf-produced energy has provided Alabamians with economic well-being through family-supporting wages that help keep the state’s restaurants open and tourism flourishing. Most importantly, it has lowered energy-related costs for our families and small businesses.

Alabamians know that energy is critical to our local economies, household and government budgets and national security. In 2018, the Gulf of Mexico produced 16% of our nation’s total crude oil and 3% of our natural gas, both of which fuel the homes, businesses, and lives of many Americans. And as we have learned from the COVID-19 crisis, energy is a linchpin for our national supply chain and manufacturing infrastructure, more of which we must onshore to avoid relying on other nations – particularly less-than-friendly ones – in the future.

As the COVID-19 crisis simultaneously threatens lives and our economy, at least 30 million people are unemployed across the nation, among them nearly a half-million Alabamians. Unfortunately, many people will be struggling to find jobs and keep food on their tables when the crisis lifts.

That’s why it is important to remember that Gulf exploration and production creates jobs and can mitigate the economic damage in several ways. One study found that expanding access in the Gulf of Mexico could help provide Alabama with more than 14,000 jobs and an additional $1.2 billion in state Gross Domestic Product. It could also add an additional $2.2 billion in funding for coastal projects from the Gulf of Mexico Energy Security Act of 2006 (GOMESA). These new jobs and resources could become critical to Alabama as we look toward a path to recovery.

GOMESA funding from federal oil and gas leasing revenues on the Outer Continental Shelf is disbursed to participating states – like Alabama – for coastal protection and restoration projects and hurricane protection programs, and activities that support coastal, marine or conservation management plans.

Here in Alabama, we benefited from more than $50 million in disbursements in 2019, including almost $5 million each for both Baldwin and Mobile Counties. GOMESA money provided $4 million to improve recreational access to Gulf State Park and $1.5 million for a coastal watershed enhancement project.

This money directly helps states with coastal protection and restoration projects, which in turn supports businesses and organizations that invest in this kind of community infrastructure and create much-needed jobs for workers.

However, revenue-sharing funds under GOMESA are capped at $375 million to be shared among the four participating Gulf states. Removing the cap would help bring more money to Alabama, which would create more ways to put Alabamians to work.

During these uncertain times when our neighbors and communities are facing potential financial hardship from COVID-19, it is important to remember the critical role Gulf energy plays in meeting our energy needs and advancing our economy. That’s especially important at a time when we need all the jobs and economic stimulus we can get.

That’s why we must ensure that oil and gas exploration and production in the Gulf of Mexico can keep moving forward. Responsible offshore energy development, along with a continued commitment to environmental stewardship that protects our coasts can continue to support all Alabamians – for generations to come.

Let’s leave every option on the table for Alabama – and America’s – economies.

Kaitlin Schmidtke is Gulf Coast Director for Consumer Energy Alliance, a U.S. consumer advocate supporting affordable, reliable energy for working families, seniors and businesses across the country.

If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.