The White House responded Thursday to concerns that the ban on drilling for oil in the deep waters of the Gulf of Mexico will cost the region thousands of jobs.Comment: I understand that people are upset about this horrible spill that continues unabated as I write this, but there is already a strong indication coming from the Obama administration to curtail or prevent future off-shore drilling. Some of this is to appease the radical "greenies" in the Democratic party but also to look like he is being tough on BP and Big Oil. Less drilling for our resources means less American jobs and less tax revenue. It also means more reliance on foreign sources for a product that, despite what "greenies" tell us, we will continue to use and need for decades to come.
"The six month moratorium on deepwater drilling was instituted for a clear reason," White House spokesman Ben LaBolt told CNN. "The President believes we must ensure that the BP Deepwater Horizon spill is never repeated."
But Louisiana Governor Bobby Jindal said that prohibiting deepwater drilling could cost the state up to 6,000 jobs this month, and 10,000 jobs over the next few months, in a letter sent Wednesday to president Obama.
If the ban continues for an "extended period," Jindal said, the state could lose up to 20,000 existing and new jobs by next year.
The moratorium was extended last week from 30 days to six months pending the outcome of an investigation into what caused an oil rig operated by BP to explode and sink last month.
The ban requires all Gulf wells in more than 500 feet of water to shut down, and also prevents permits from being issued for any new deepwater drilling.
However, there are 4,515 shallow-water wells in the Gulf that will not be affected, according to the Louisiana Mid-Continent Oil and Gas Association (LMOGA)...
...According to the LMOGA, roughly 33 floating drilling rigs in the Gulf will be idled as a result of the ban. Jindal said 22 of those deepwater rigs are off the coast of Louisiana.
And the group estimates that as many as 1,400 jobs are at risk for each of the 33 idled rigs.
Those jobs pay an average of $1,804 per week, which means the potential for lost wages for all 33 rigs could be as much as $330 million per month, LMOGA said.
Thursday, June 3, 2010
Less Rigs, less work, more unemployed