- In one act, the Obama administration has signed the pink slips of tens of thousands of Louisiana and Gulf Coast citizens.
- The financial consequences from the moratorium will eventually create an economic ripple effect that will negatively impact every citizen of the United States.
- Consumers will bare the brunt of the federal drilling moratorium paying more everywhere from the pump to the grocery store.
There is no question that the moratorium will have, and is having, disastrous effects on the Louisiana economy. The American Energy Alliance report makes that perfectly clear. The original moratorium was issued on May 30th. A federal judge blocked the enforcement of this moratorium on June 22nd, so the Obama administration issued another one on July 12th, this time eliminating the provision of drilling depth from the moratorium.
The AEA report outlines the kind of jobs affected by this move. It's not just rig workers, obviously. there are shipbuilders who provide exploration vessels, platforms, etc.; steelworkers, accountants and bankers who provide financial services, grocers who supply staples for the offshore rigs, transportation, refining, retail and hospitality businesses.
The job loss, of course, leads to lost tax revenue to the tune of $98 million in the Gulf states alone. Because of what Dr. Mason, author of the AEA report, calls a "spill-over" effect, he says "the federal government stands to lose $219 million in tax revenue."
The rally in the Cajundome today is expected to draw plenty of media coverage and hope are that Washington will hear their plea to lift the moratorium and save Louisiana jobs. With bad weather moving in once again, and work possibly being shut down in the Gulf, things continue to look grim.