Gulf Residents to Rally Against Moratorium on Jobs, Energy Security

By July 17, 2010Briefly Legal, Energy

The Louisiana Oil and Gas Association is reporting on plans for a rally next Wednesday at the Lafayette Cajundome, the Rally for Economic Survival, protesting the federal moratorium on deepwater drilling in the Gulf of Mexico that is costing jobs just as the region needs for more economic activity and employment.

Don Briggs, president of the association, commented, “I have never seen so many people so focused and dedicated to a cause. I hope the entire nation will see the large crowd we assemble at the Cajundome, hear the words of our diverse and distinguished speakers and realize how important lifting the moratorium is for the entire country. More importantly, I hope President Obama will see the people in the Cajundome – representing all walks of life – and hear their message to lift the moratorium immediately.”

One of the speakers will be Louisiana Gov. Bobby Jindal, who has an op-ed in today’s Washington Post, “Ban on deep-water drilling adds insult to injury“:

[The] federal government unwisely chose to add insult to injury by decreeing a moratorium on deepwater drilling in the gulf. This ill-advised and ill-considered moratorium, which a federal judge called “arbitrary” and “capricious,” creates a second disaster for our economy, throwing thousands of hardworking folks out of their jobs and causing real damage to many families. Now this federal policy risks killing 20,000 more jobs and will result in a loss of $65 million to $135 million in wages each month….

Let’s be clear: This moratorium will do nothing to clean up the Gulf of Mexico, and it is already doing great harm to many hardworking citizens. The effects will extend well beyond Louisiana. Since the moratorium was announced, America has already lost two rigs to foreign countries. More drilling companies are negotiating right now to work elsewhere. Every time we decrease our level of production, we make America more dependent on foreign sources of energy.

Diamond Offshore Drilling has announced the move of rigs to off the coast of the Congo, Africa, where the oil it produces could wind up being shipped back to the United States.

The Louisiana Mid-Continent Oil and Gas Association offers more details on the economic impact.

  • Each drilling platform averages 90 to 140 employees at any one time (2 shifts per day), and 180 to 280 for 2 2-week shifts
  • Each E&P [exploration and production] job supports 4 other positions
  • Therefore, 800 to 1400 jobs per idle rig platform are at risk
  • Wages for those jobs average $1,804/weekly; potential for lost wages is huge, over $5 to $10 million for 1 month—per platform.
  • Wages lost could be over $165 to $330 million/month for all 33 platforms

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