‘Both kinds: Country and Western.’ 

The Obama administration has effectively banned two kinds of off-shore drilling — deep-water and shallow-water — says Dan Kish of the Institute for Energy Research:

[T]here are effectively two moratoria in place: the formal one, targeting deepwater drilling, and an informal one targeting shallow-water drilling operations.  “About half of the rigs in the shallow waters of the Gulf are not operating,” said Kish, “because they can’t get permits from the government agency that is supposed to give them permits.  So, in essence, what’s happening is that much of the fleet of deep- and shallow-water rigs in the Gulf of Mexico, which supplies a third of our domestic oil, are being laid up, put in cold storage, awaiting the government to make a decision one way or the other.”

Analysts said that of the thirty-three deepwater rigs in the Gulf, along with another eight under construction and committed to operate in the Gulf, at least four have already left, or are preparing to leave, the U.S. for foreign shores, pursuing contracts in emerging markets like the Egypt, the Congo, Brazil, and Greenland.

…[Tulane's Eric] Smith calculated that current restrictions effectively halting shallow- and deepwater drilling in the Gulf account for the loss of a combined 137,000 jobs, and impose a cost of $3 billion in “payroll effects,” with Louisiana consequently suffering a loss of $300 – $400 million in tax receipts.  Smith’s assessment is in line with some of the projections put forward by Dr. Joseph R. Mason of Louisiana State University, who estimated in a recent analysis that the moratoria will inflict “broad economic losses within the Gulf region and throughout the nation as a whole,” to the tune of $2.7 billion in economic activity.

Oh: And don’t forget to add in the cost of all the handouts we’ll need for the people whom the government insists on keeping out of the job.

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Staff Report

Staff Report

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A daily newspaper covering San Francisco, San Mateo County and serving Alameda, Marin and Santa Clara counties.
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