Study Finds Offshore Oil and Gas and Wind Energy Create Billions in Ecosystem Service Value
The Conservative Energy Network (CEN), a coalition of 26 state-based conservative clean energy organizations, today released a groundbreaking new study, The Environmental and Economic Benefit Connection Between Offshore Oil & Gas and Offshore Wind Energy.
Download the Study Here: The Environmental and Economic Benefit Connection Between Offshore Oil & Gas and Offshore Wind Energy
The study highlights the substantial and often uncalculated environmental and economic benefits generated by offshore energy subsea infrastructure. Authored by net environmental benefit expert Joseph Nicolette, this is the first study in the world to apply the Net Environmental Benefit Analysis–Comparative Assessment (NEBA-CA) methodology to an offshore wind (OSW) project. The report shows that both offshore oil and gas (O&G) platforms and OSW developments produce measurable ecosystem services, such as enhanced marine habitats and increased fisheries productivity, valued in the billions of dollars. These benefits, which are typically left out of traditional evaluation frameworks, offer significant advantages for marine life, coastal economies, and long-term energy planning in the United States and internationally.
A NEBA-CA is a risk-benefit framework recognized by U.S. and international regulatory agencies, and is used by policymakers, regulators, and private industry for evaluating actions that impact the environment. Originally adapted to assess decommissioning options for offshore O&G platforms at the end of their useful life, this proven methodology has been used for over a decade in O&G studies. In this report, NEBA-CA is applied for the first time to OSW, with a preliminary assessment of the Coastal Virginia Offshore Wind Commercial (CVOW-C) development, demonstrating its value as a tool for evaluating future offshore wind projects.
“While these energy sectors are often viewed in opposition, this study reinforces that both offshore wind and offshore oil and gas contribute to marine ecosystem health and human economic prosperity in similar ways,” said John Szoka, CEO of CEN. “As policymakers look for balanced energy solutions, we should recognize that offshore energy development, whether oil, gas, or wind, delivers substantial and positive unintended benefits that extend well beyond energy production, leading to multigenerational benefits. In any review of existing or proposed offshore wind projects, a NEBA based Comparative Assessment would provide a transparent, data-driven basis for decision-making, balancing both benefits and risks.”
Key findings of the report include:
• A thriving marine ecosystem contributes to thriving coastal economies: CVOW-C structures provide significant and measurable ecosystem service benefits, generating value equal to hundreds of millions of dollars over time.
• Minimal risks to marine mammals: Scientific studies indicate that negative impacts on marine life, including whales, are unsubstantiated and mitigated through existing regulatory measures.
• Positive Impacts on Commercial & Recreational Fishing:
- OSW structures act like artificial reefs, enhancing secondary fish production and improving biodiversity.
- The CVOW-C project is projected to increase commercial fishing value by at least 15%; as the ecosystem matures, potential spillover effects from enhanced marine life may affect areas outside the project area.
- The project is expected to double the recreational fishing value of the area by attracting anglers, charter fishing, and other activities like scuba diving and spearfishing.
“After 40 years of environmental consulting and ecosystem service economic analysis, I can confidently say that offshore wind and oil and gas subsea infrastructure can provide long-term ecological and socioeconomic benefits that far outweigh perceived risks,” said Joseph Nicolette, the report’s author. “By using a NEBA based Comparative Assessment framework, policymakers and industry leaders can better understand these benefits and make more informed decisions about offshore energy development.”
The report also calls for site-specific studies using a NEBA-CA to refine the valuation of these benefits and risks. Such analyses would help guide energy policy with scientifically backed data, ensuring that offshore energy projects maximize both economic and environmental returns.
The full report is available here.
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Conservative Energy Network (CEN) is a 501(c)(3) non-profit coalition of state-based conservative clean energy organizations advancing policy solutions that emphasize market competition, consumer choice, and innovation. Learn more at www.conservativeenergynetwork.org.