[StBernard] Statement from Louisiana Coastal Parishes Regarding the Obama Administration's Moratorium On Existing Deepwater Drilling Activity

[Westley Annis]

South Louisiana is America's energy workhorse. Hundreds of thousands of men
and women of coastal Louisiana go to work each day to service the oil and
gas industry., including painters, electricians, deck hands and mechanics.
This is what we do. It is a job that we take very seriously and have
performed extremely well for over half a century. The men and women of
Louisiana are proud to safely fuel this nation, and most of us do it while
working for small businesses whose names never make headlines.

 
President Obama's May 28 order suspending all existing offshore deepwater
drilling for at least six months will cause irreparable harm to our energy
service industry and drive a stake through the heart of American communities
already suffering tremendously from the environmental and economic impacts
of the BP oil spill. Economic impacts will not last just six months, but
will last for several years to come and ultimately result in irreversible
damage to our local economy, culture and way of life.

 
It has been estimated that up to 6,000 Louisianans will lose their jobs
within three weeks of the rig shutdowns, and up to 10,000 Louisiana jobs
will be lost within a few months. Furthermore, idle rigs in the Gulf will
likely be contracted overseas for work in foreign countries, not returning
to the Gulf for several years after the moratorium, if not at all. Job
losses could total more than 20,000 in just 18 months.

 
Our local economies will be decimated, with anticipations of double-digit
unemployment and a housing market collapse in a region that up, until now,
was the most economically productive in the nation. And the impact expands
beyond businesses most often associated with the energy industry, like tool
rental, crew boats and offshore food service. Every sector of our economy,
from grocery stores and restaurants to hospitals and schools, will be
crippled by the moratorium and may never recover. Washington, D.C. will see
Louisiana' coastline communities left barren from a government decision that
will destroy a very important part of America.

 
Residents of coastal Louisiana have zero tolerance for the actions and
decisions by individuals that resulted in the BP oil spill. We care about
our natural resources, our communities and each other. However, we also know
that in America, we can accomplish two things at once: we can protect
workers and the environment, while we continue to produce energy and jobs
for Americans. It is critical to the entire nation that we do both.

 
We wholeheartedly support the proposed safety recommendations; however, we
believe that many of these safety measures can be expedited and implemented
immediately. We urge President Obama to reduce the six-month moratorium on
deepwater drilling in the Gulf to no more than 30 days, during which time
any additional rig inspections can be conducted by Minerals Management
Service officials, greatly reducing the job loss and minimizing the negative
economic impacts felt by our region while ensuring a safer industry. In
addition, we recommend that MMS inspectors maintain a 24/7 presence on all
ongoing deep water drilling locations, with a 7-10 day rotation schedule and
strict compliance with API standards shall be maintained on all equipment
used in well construction. Without these modifications to the deepwater
drilling moratorium, our region faces a very bleak economic future that will
have catastrophic consequences from Baton Rouge to Boston, Boulder and
beyond.

South Louisiana is America's energy workhorse. Hundreds of thousands of men
and women of coastal Louisiana go to work each day to service the offshore
oil and gas industry. This is what we do. It is a job that we take very
seriously and have performed exceedingly well for over half a century. 
 
In the aftermath of the BP Oil Spill, the Obama Administration has ordered a
moratorium on existing Gulf of Mexico deepwater drilling, which will result
in the immediate suspension of operations at 33 rigs in the Gulf. 
 
This moratorium on offshore deepwater drilling will cause irreparable harm
to our energy service industry and drive a stake through the heart of
American communities already suffering tremendously from the environmental
and economic impacts of the BP oil spill. Economic impacts will not last
just six months, but will last for several years to come and ultimately
result in irreversible damage to our local economy, culture and way of life.

 
It has been estimated that up to 6,000 Louisianans will lose their jobs
within three weeks of the rig shutdowns, and up to 10,000 Louisiana jobs
will be lost within a few months. Furthermore, idle rigs in the Gulf will
likely be contracted overseas for work in foreign countries, not returning
to the Gulf for several years after the moratorium, if not at all. Job
losses could total more than 20,000 in just 18 months. 
 
The Deepwater Horizon oil spill has cost the seafood and tourism industry
dearly in lost revenue. Thousands of fishermen have been out of work for
over a month. It is unconscionable to compound this economic crisis with an
energy policy decision that will result in additional catastrophic losses
for our hard-working residents, small businesses and coastal communities. 
 
An estimated 33% of the nation' domestic oil comes form the Gulf of Mexico.
Eighty percent of the Gulf' oil and 45% of its natural gas comes from
operations in more than 1,000 feet of water- the deepwater. 
 
Port Fourchon in Lafourche Parish services 90 percent of deepwater
operations in the Gulf of Mexico. 
 
Suspension of deepwater drilling operations will result in at least 33
floating rigs being idled for six months or longer. Idle rigs in the Gulf
will likely be contracted overseas for work in other locations, and may not
return to the Gulf of Mexico for several years if at all. 
 
An average of two supply boats work each rig per day with rates of $15,000 -
$30,000/boat. Suspension of drilling activity will result in a nearly $1
million loss per day in supply boat rental income. 
 
Each drilling rig averages 180-280 employees for each two-week shift, and
each job on the rig supports four other American jobs. 
 
The moratorium could lead to a decrease in the future availability of
domestic oil, possibly driving prices to levels above $100/barrel. 
 
Residents of coastal Louisiana have zero tolerance for the actions and
decisions by individuals that resulted in the Deepwater Horizon tragedy. We
care about our natural resources, our communities and each other. However,
we also know that in America, we can accomplish two things at once: we can
protect workers and the environment, while we continue to produce energy and
jobs for Americans. It is critical to the entire nation that we do both. 
 
We urge President Obama to reduce the six-month moratorium on deepwater
drilling in the Gulf to no more than 30 days, during which time any
additional rig inspections can be conducted by Minerals Management Service
officials, greatly reducing the job loss and negative economic impact felt
by our region while ensuring a safer industry. 
 
Furthermore, we recommend that MMS inspectors maintain a 24/7 presence on
all ongoing deep water drilling locations, with a 7-10 day rotation schedule
and strict compliance with API standards shall be maintained on all
equipment used in well construction.