Drilling Moratorium

POSTED: Friday, June 25, 2010 - 4:00pm

UPDATED: Friday, June 25, 2010 - 8:14pm

BATON ROUGE (WVLA) --Community leaders, chambers of commerce and economic experts met at the Louisiana Association of Business and Industry (LABI) today to share information about the economic impact of the moratorium on exploratory drilling in the deep waters of the Gulf.

They say coastal parishes will suffer the most; the oil and gas industry makes up 20% of their total economy. A judge in New Orleans ruled the moratorium is unjust, but it's still in place, while that decision is appealed.
The uncertainty of the mandate, coupled with the ongoing crisis on the coast, is already affecting business on, and off shore.

Grand Isle Fisherman Berry Michell said "fishermen make their living off the water. This is what they do to support their families, this is what they do to pay their tuition for school, this is how we pay our mortgages, this is how we pay the insurance, the gas for our vehicles." Being totally cut off from their livelihood, cost the commercial fishing industry up to $3 million a day.

And there is a larger impact, long term. Dr. Jim Richardson, an Economist with LSU, says there's no way the moratorium will only last six months. He says the government can't assemble a staff and secure all the rigs in that time frame. 

That's a real fear for the industry. Some are already leaving the Gulf Coast.

Dan Juneau, President of LABI has seen the impact first hand. He says "rigs are leaving. By the end of this week, there will be three already gone and five more who are finalizing plans, deep water rigs. We know of 16 shallow water rigs that were working before April 20th that aren't working now. That soon will go up to 35 or so."

Click on the attached files to view Power point presentations of the statistics discussed today.

Eysink Louisiana Moratorium.ppt4.64 MB

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