Economic Effects of Coastal Alabama and Destin Dome Offshore Natural Gas Exploration, Development, and Production



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United States Department of the Interior Minerals Management Service Gulf of Mexico OCS Region


Following the discovery of Norphlet gas in Mobile Bay, in the early 1980s the Coastal Alabama region experienced the emergence of a large offshore gas industry which has employed thousands in Mobile County, Alabama, Louisiana, and Texas. The new offshore industry in Mobile County was very different from the tourism- and service-based industries that dominate the region, and which were also experiencing rapid growth in the 1980s. To determine the economic effects of the offshore gas industry on Mobile County, the rest of Alabama, and the combined economies of Louisiana and Texas, an IMPLAN Input-Output model was developed for the Norphlet-dominated offshore industry. the IMPLAN results combined with estimates of industry expenditures on offshore exploration, development, and production drive a spreadsheet model that estimates the impacts on employment, population, and personal income resulting from the Coastal Alabama offshore gas industry. The model estimates past economic effects and forecasts them through 2020. Future industry activity in the Destin Dome area of the Eastern Gulf of Mexico Results are also included. This study is the third in a series of investigations analyzing the social and economic impact of the Coastal Alabama offshore gas industry on Gulf Coast states.


200 pages


Destin Dome, industrial growth, economic impact, offshore oil and gas development