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White Paper: 2014 Energy Study

Introduction

On Sept. 9, the Mobile Area Chamber of Commerce presented the results of an independent impact study on the area’s energy sector to its board of directors, Partners for Growth steering committee and energy committee. The Economic Impact of the Energy Sector and Petroleum Tank Storage Industry on Mobile County was conducted by Keivan Deravi PhD and Barbara Buchanan, both of Auburn University at Montgomery.

 

The study focused on area refineries, coal, import and exports at the Port of Mobile and petroleum tank storage. Key factors analyzed were employment, earnings and demand.

 

The Mobile Area Chamber’s economic development efforts target six “major” industries. They are aerospace, healthcare/biomedical, manufacturing, oil and gas exploration, maritime and transportation/distribution. Nearly all of these industry clusters rely heavily on the availability of affordable and abundant energy options.

 

Chamber “Take-a-ways”

  • The Mobile Area Chamber’s board of directors adopted an Energy Policy in 2006 advocating for increasing the supply of energy in a manner that is safe and protective of the environment; improving the regulatory climate; and promoting comprehensive energy conservation and encouraging research and development of alternative energy sources.
  • Within the oil and gas sector (onshore and offshore), chemical manufacturing, oil storage and coal, there is a $4-5 billion economic impact for our region.
  • Across the nation, capital spending in oil and gas industry infrastructure increased 60 percent from $56.3 billion in 2010 to nearly $90 billion in 2013.
  • There is an additional estimated $890 billion in oil and gas infrastructure investment planned in the U.S. from 2014-2025, and Mobile’s economy will be impacted because of it.
  • Shutting down Mobile’s oil and gas industry would have unintended consequences for the operation and maintenance of the Port of Mobile, including the loss of federal dollars tied directly to tonnage for necessary dredging.
  • Mobile County has the most diversified economy in the state of Alabama.

 

For More Information, contact

Bill Sisson, President and Chief Executive Officer, 251-431-8610, bsisson@mobilechamber.com

Bob Chappelle, Chief Operating Officer, 251-431-8644, bchappelle@mobilechamber.com