Jun 042010
Gulf Oil Jobs Crisis - by Decree

If you’ve been following the oil spill, you know the president has declared a six-month moratorium on offshore oil drilling. ¬†This is in addition to the existing ban on drilling closer to shore, as well as exploration and drilling on most land-based applications. ¬†Jobs will be lost by the thousands, and gasoline prices will soar. ¬†As reported in the Inside Louisiana News.com blog, Governor Jindal of Louisiana wrote an alarmed letter regarding the job losses, here. Proof that the economic damage has already begun is illustrated by the invoking of force majeur clauses to cancel existing drilling contracts and ceasing activity until the end of the moratorium, as reported here, on Tom Fowler’s Energy blog. ¬†I thought the following comment in the thread that followed was indicative of what we can anticipate: I have to wonder if President Obama and his advisors have thought thru the ripple effects of halting 33 projects in the Gulf of Mexico and putting a 6-month stop on new drilling. Employees of oil and gas operators; employees of drilling rig contractors; employees of multiple oil and gas service companies; employees of crew boat companies; employees of helicopter service companies; vendors who supply fuel and groceries, etc. to rigs….and I’m sure there are more that just haven’t come to mind, who will lose work in a time when, on another hand, President Obama is promoting increased employment and healing the economy. His decision will wreak havoc on Texas and Louisiana economies with ripple effects beyond that. Finally, a little food for thought regarding the importance of oil drilling to our livelihoods. ¬†Most of America needs a car to get to work. ¬†They also do not have public transportation as a substitute. ¬†Not everyone has the year-round weather, safe-paths, or age and health related ability to ride a bike to work. ¬†We can’t know how much oil we have domestically until we stop acting as if we can simply will our dependency away. ¬†The poor will suffer the most, and the middle-class our administration claims to love and protect – will become poor. ¬†Some will conclude that continue reading