Developing oil and gas resources off Virginia's coast could mean billions of dollars and thousands of jobs for the state, officials said.
But exploiting those valuable underwater deposits could take years.
"There will be great opportunities to create companies and create jobs," said Hugh Keogh, president and CEO of the Virginia Chamber of Commerce, "and bring Virginia along into a new and exciting industry."
The federal Minerals Management Service estimates the 2.9 million acres in the prospective Virginia offshore lease — at least 50 miles out in the Atlantic Ocean — may contain 130 million barrels of oil and 1.14 trillion cubic feet of natural gas.
The potential economic impact for the Old Dominion "really depends on how much [gas and oil] is found out there," said Michael Ward, executive director of the Virginia Petroleum Council, "and there are different estimates of how much might be out there."
Over a 10-year period, offshore natural-gas production could stimulate creation of more than 2,500 jobs, produce investment of nearly $8 billion, payrolls of $644 million, and $271 million in state and local taxes, according to one estimate cited by state officials.
Developing the resources off Virginia's coast could generate nearly $19.5 billion in revenues to federal, state and local governments, the American Petroleum Institute said, citing another study.
The heavy presence of shipbuilding and maritime-related businesses in Hampton Roads will smooth the transition to developing Virginia's subsea oil and gas resources, Keogh said.
"We hope that the offshore development could occur in a environmentally safe and well-regulated way," Keogh said, "but nevertheless in a productive way that would create jobs and revenue for Virginians."
However, that development is unlikely to occur quickly. It will take seven to 10 years after the leasing occurs in 2011 or 2012 for production to begin, said Michael Whatley with the Southeast Energy Alliance in Fredericksburg.
"Anytime we can have additional domestic supplies, it's good news," said Bob Innes, spokesman for Columbia Natural Gas of Virginia, an energy-distribution company in Chester. "The nice news about it is, it's right off our shores."
One energy company that was not affected by the president's announcement was Richmond-based Dominion Resources Inc., which is selling its oil- and gas-exploration and production business.
"Once [the sale is] completed," company spokesman Dan Donovan said, "we will not be drilling anywhere, including offshore Virginia."
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