NCPA - National Center for Policy Analysis


July 29, 2010

Lawmakers and residents strongly believe that the moratorium banning oil exploration in the Gulf of Mexico is "reckless" and suffocates small businesses and destroys livelihoods.  According to Democratic Senator Mary Landrieu, "The decision appears to have been made in an uninformed manner that borders on recklessness.  It has increased our risk to the environment, it has increased our national security risk and it has increased the risks to job security.  It must be reversed now," says Yahoo! News. 

According to a study by Louisiana State University finance professor Joseph Mason: 

  • The six-month moratorium, which ends in late November, will cost more than 8,000 jobs in Gulf states of Florida, Alabama, Mississippi, Louisiana and Texas.
  • Nearly $500 million in wages will be wiped out by the deepwater drilling ban, as will $2.1 billion dollars in economic activity and some $100 million dollars in state and local tax revenues.
  • At least 12,000 jobs could be lost nationwide, and with them would go around $200 million dollars in federal tax revenues. 

John Young, chair of Jefferson Parish Council in Louisiana, which is home to the towns of Grand Isle and Lafitte, both heavily impacted by the spill, called the moratorium "a death blow to Louisiana."  "It's throwing out the baby with the bathwater.  We can have safe drilling without a moratorium," Young said. 

According to Sen. Landrieu, "The moratorium was imposed without proper economic analysis and I think the administration will be shocked when they understand how many people this action has put out of work and how many thousands of small businesses are being jeopardized by this action." 

Source: Karin Zeitvogel, "Lift 'reckless' oil drilling ban, Gulf residents plead," Yahoo! News, July 27, 2010.


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