ACCESS NUMBER: 30868 

STUDY TITLE: Economic Impact of Fishing and Diving Associated with Offshore Oil 

and Gas Structure 

REPORT TITLE: Economic Impact of Recreational Fishing and Diving Associated with 

Offshore Oil and Gas Structures in the Gulf of Mexico 

CONTRACT NUMBER: 1435-01-97-CT-30868 

SPONSORING OCS REGION: Gulf of Mexico OCS Region 

APPLICABLE PLANNING AREA: Gulf of Mexico 

FISCAL YEARS OF PROJECT FUNDING: 1997, 1998 

COMPLETION DATE OF REPORT: February 2001 

COSTS: FY 1997: $100,000 FY 1998: $198,958: CUMULATIVE PROJECT COST: 

298,958 

PROJECT MANAGER: Robert L. Hiett 

AFFILIATION: QuanTech, Inc. 

ADDRESS: 1815 Fort Myer Drive, Suite 908, Rosslyn, Virginia 22209 

PRINCIPAL INVESTIGATORS: Robert L. Hiett, J. Walter Milon 

KEY WORDS: Recreational Fishing, Recreational Diving, Economic Impact 

BACKGROUND: There are more than 5,000 oil and gas structures located in state and 

federal waters in the Gulf of Mexico, primarily in Louisiana and Texas waters and on the 

adjoining outer continental shelf. More than 100 older structures are being removed 

annually, and the Minerals Management Service expects that these numbers will 

continue to decline. Because oil and gas structures provide shelter and, indirectly, 

contribute food for benthic, demersal, and pelagic fish, the behavior of Gulf of Mexico 

fishermen and divers has been influenced by their presence. A study conducted in the 

1980s, for example, found that oil and gas structures were used by 70 percent of 

Louisiana fishermen. In order to guide decision-making about the removal of older 

structures, the Minerals Management Service needs current information on the extent of 

recreational use of offshore structures and the economic impact associated with that 

use. 

OBJECTIVES: There were three study objectives addressed by this research. First, 

QuanTech was asked to assess the recreational demand for fishing and diving 

associated with offshore oil and gas-related structures and with artificial reefs resulting 

from the “rigs to reef” programs in Texas, Louisiana, Mississippi and Alabama. 

Secondly, the study was to assess the economic impacts resulting from this recreational 

demand on the economies of Texas, Louisiana, Mississippi, and Alabama. Finally, an 
ACCESS NUMBER: 30868 

objective was to analyze the incremental expenses associated with recreational fishing 

and diving that would not have been incurred if anglers had no offshore structure fishing 

or diving opportunities. 

DESCRIPTION: The data collection methodology for meeting these objectives of the 

project combined in-person interviewing of recreational fishermen and divers in the field 

with follow-up telephone interviewing. The field interviews were used to estimate the 

proportion of fishing and diving trips taken near Gulf of Mexico oil and gas structures or 

artificial reefs created from such structures. The follow-up telephone interviews were 

used to estimate trip-related costs and capital expenditures associated with recreational 

fishing and diving. An independent survey of charter boat operators, party boat 

operators, and dive shops was used to obtain subjective estimates of the importance of 

oil and gas structures to recreational fishing and diving in the Gulf. A total of 10,475 

interviews were obtained in the field with private boat fishermen, charter boat fishermen, 

party boat fishermen, and recreational divers. A total of 2,724 telephone follow-up 

interviews were conducted with these fishers and divers to obtain the required 

expenditures information. In addition, 60 telephone interviews were conducted with 

charter boat operators and owners/managers of dive shops across the region. 

SIGNIFICANT CONCLUSIONS: This study confirmed that there is substantial 

recreational activity associated with the presence of oil and gas structures in the Gulf of 

Mexico from Alabama through Texas and these activities have a substantial economic 

impact. Because the presence of oil and gas structures is important to recreational 

fishing and diving, consideration should be given to assuring the continued availability of 

at least some of these structures across the range of the Gulf Coast area, even after 

they are no longer used for oil or gas extraction. Decisions on structure removal must 

take into account the effects on recreational activities and the economic value they 

represent. It is noted that the process by which fishermen and divers select the specific 

oil and gas structures to visit is not well understood. Both the incremental value which 

was established in this research and the fact that fishermen and divers visit multiple 

structures on each trip suggest that there is a decision process which underlies the 

selection of particular structures for recreational activities. If a decision about removal 

of a specific structure is being considered, it would be extremely useful to have in hand 

a set of variables which are known to be associated with structure recreational usage. 

Decision-making processes for structure removal should include consideration of the 

needs of recreational fishermen and divers. Moreover, fishing and diving interests 

across the Gulf should be kept informed about the processes of structure removal and 

given opportunity to participate in such decisions. 

STUDY RESULTS: The proportion of trips taken within 300 feet of oil or gas structures 

ranged from 20.2 percent for private boats to 50.9 percent for party boats. Among divers 

interviewed, 93.6 percent of the trips were within 300 feet of an oil or gas structure. Of 

the 4.5 million recreational fishing trips estimated in the Gulf States from Alabama 

through Texas in 1999, 21.9 percent of them were within 300 feet of an oil or gas 

structure. Of the 83,780 estimated diving trips, 93.6 percent were within 300 feet of 

such a structure. The survey accounted for a total of $172.9 million in trip-related costs 

for fishing and diving near oil and gas structures in the Gulf States from Alabama 

through Texas. Of this number, $13.2 million were trip expenditures for diving with the 
ACCESS NUMBER: 30868 

balance of $159.7 million associated with trip expenses for recreational fishing. The 

survey accounted for a total of $640.0 million in equipment costs associated with 

recreational fishing and diving activities by those who visited oil or gas structures in the 

Gulf states from Alabama through Texas during the survey year. Of this number, $0.6 

million was equipment expenditures for diving with the balance associated with 

equipment expenditures for recreational fishing. The analysis also indicated that there 

was a total of $324.6 million in economic output in coastal counties of the Gulf region 

associated with fishing and diving activities near oil and gas structures during the year. 

The value added component of this was $164.1 million with employment estimated at 

5,560 full time equivalents. 

STUDY PRODUCTS: Hiett, R.L. and J.W. Milon. 2001. Economic Impact of 

Recreational Fishing and Diving Associated with Offshore Oil and Gas Structures in the 

Gulf of Mexico: Final Report. OCS Study MMS 2002-010. U.S. Dept. of the Interior, 

Minerals Management Service, Gulf of Mexico OCS Region, New Orleans, LA. 98 pp.

*P.I.’s affiliation may be different than that listed for Project Manager(s).