Survey Finds Oil Moratorium May Cost 8,000 and $2.1 Billion

New survey finds the Obama Administration  moratorium on oil drilling in the Gulf of Mexico could cost the 8 ,000 jobs and $2.1 billion to the region. The survey by Dr. Joseph R. Mason, Louisiana State University endowed chair of banking and renowned economist for Save US Energy Jobs a project  Alliance of American Energy.

Decrease in Earnings From Six Months Moratorium on Oil Drilling

The survey shows 8,000 jobs and $5oo  Million in lost wages for the first six months.“The moratorium will cost the Gulf Coast region jobs, money, and economic development,” he said. “In fact, the moratorium could be more costly than the oil spill itself.”

The report not only cover the cost the Gulf Coast states but  the moratorium impact  on the nation.  The survey says 12,046 jobs nationwide would be affected.  The energy industry and associated industries will be hit as well.  Jobs in these industries will be affected including the following: mining, transportation, warehousing, wholesale and retail trade, health care, entertainment, education, and waste management.

The hardest hit states includes Louisiana  which could lose 4,719 jobs followed by Texas could lose 2,492 jobs due to the moratorium. There would be a loss in wages from $65 million to $135 million  per month affecting a troubled job market.

If that not enough their tax revenue will  Gulf Coast states will drop.: Texas will lose by $22.8 million, Alabama will decrease by $7.2 million, Mississippi will decrease by $8.4 million, and Louisiana will decrease by $59.3 million, according to the analysis.

“The region is already struggling from devastating losses from Hurricane Katrina, Hurricane Gustav, and the nation’s depressed economy,” Mason said. “By stifling one of the area’s primary economic engines, the administration is crippling the local economy and risking long-term consequences.”

he report also warns against a permanent moratorium on offshore drilling in the GoM. As a “worst-case scenario,” it would cost more than 400,000 jobs and $95 billion nationwide.

Tom Pyle, president and CEO of the American Energy Alliance, said, “We need to find ways to save US energy jobs, not cut them.”

He said the Gulf Coast would be devastated, and the jobs of families nationwide would be affected.

“For the good of the families throughout the Gulf region and our nation’s energy security, the Obama administration must lift the moratorium and get the Gulf back to work,” Pyle said.

Exploration And Production Magazine

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