Obama's Drilling Freeze Will Cost 120,000 Jobs

Joe Schoffstall | June 16, 2010
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Despite the Gulf regions economy being damaged from the seemingly endless oil spill, President Obama has implemented a six month moratorium on drilling in the region. This ban on drilling is estimated to cost 120,000 people their jobs, as some oil companies may be relocating to more energy friendly areas. According to Wood Mackenzie Research and Consulting, the six month moratorium will result in the following:

  • The 33 drilling platforms which support some 1,400 workers, offshore and onshore will be forced to shut down
  • As many as 46,200 jobs could be idled by the moratorium
  • These are well-paying jobs – $5-10 million per month, per platform in lost wages
  • Long-term job losses as a result of the moratorium could reach 120,000 by 2014
  • The State of Louisiana estimates that the deep-water drilling suspension will result in a loss of 3,000-6,000 in-state jobs in the first 2-3 weeks and potentially more than 20,000 Louisiana jobs within the next 12-18 months.  Louisiana estimates that if the suspension of deep-water drilling activity continues for long period, the state could lose more than $20,000 in the next 12-18 months . (h/t Yid With Lid)
Not only are 120,000 jobs in peril, it was recently announced that many of the oil companies may be relocating to Brazil, possibly squashing any hope of the jobs returning after the drilling ban is lifted. The reason for this is quite simple; if they're not welcome to drill in the Gulf of Mexico, they'll relocate to a more energy friendly area- right off the coasts of Brazil. In a time when the economy is already devastated nationwide, banning oil drilling costing over 100 thousand people their jobs is not the answer. Neither is capitalizing off the disaster to push a global warming energy bill (Cap and Trade)  that has absolutely nothing to do with an oil rig explosion. When will decisions be made that won't affect people or the economy in a negative way, real solutions end up on the table, and actions be taken that will actually make the situation better today than it was the day before?
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