A Louisiana economic development group says federal permitting for deep-water drilling continues to fall well below levels prior to the 2010 Gulf of Mexico oil spill, causing area businesses to lay off workers and relocate away from the Gulf Coast.
In a report released last week, the Greater New Orleans, Inc. economic alliance studied the rate of federal permitting for offshore activity since the moratorium on deep-water drilling was lifted in October 2010.
The group found that federal regulators have approved about three deep-water drilling permits per month since the moratorium ended, down from six permit approvals per month prior to the spill.
The Deepwater Horizon rig explosion in April 2010 killed 11 people and unleashed the largest offshore oil spill in U.S. history. In its wake, the feds clamped down on offshore oil activity, instituting a six-month moratorium on deep-water drilling.
The study found that permit approval took an average 109 days in 2011, compared to 61 days during the five years prior. The percentage of drilling plans approved fell to 34 percent in 2011, from an average 73 percent.
In the group’s survey of 99 companies, 49 percent said they had laid off workers in response to the moratorium, including engineers, office staff, riggers and captains. About 38 percent said they reduced employee hours or salaries. The average annual revenue for the responding companies fell from $136.5 million before the spill to $104.5 million today.
Of the respondents, 46 percent said they had moved all or part of their operations away from the Gulf of Mexico as a result of the moratorium.
However, the report noted that businesses negatively affected by the moratorium were more likely to respond to the survey, possibly causing skewed results.
Across Louisiana, the oil and gas extraction industry didn’t shed workers, remaining at about 8,500 employees before and after the moratorium, according to the report. The number of workers in supporting industries rose 6 percent, from 37,718 immediately before the oil spill to 39,840 after the moratorium was lifted.
The study attributed the employment growth to greater onshore oil drilling in the state’s shale gas areas.
“Several survey respondents mentioned hiring new workers for shale work,” the report noted. “The Haynesville Shale activity in North Louisiana may have mitigated some of the employment decreases resulting from decreased activity in the Gulf of Mexico.”
Greater New Orleans, Inc. is an economic development alliance that promotes the interests of businesses in New Orleans’ 10-parish area.
It takes more than ONE permit to drill at each well site in the Gulf. What about the other 14 or 15 permits, including the last which comes just hours before the bit hits the sea floor? It’s all smoke and mirrors, John Q Public, don’t believe what you read. Such a shame, because Americans are the beneficiaries of the revenue that comes from the royalties of these oil exploits. If that oil and gas royalty money is not going into the fund to support our infrastructure, do you know where that needed cash comes from? Income tax increases… YOUR pocket!
I work in the offshore drilling industry. I didn’t really need to read this article to KNOW that…..
we can thank our great & brilliant obama for this along with all the nuts that think the world can run on only wind/solar power. these are the same fools that have caused the delay in the pipeline from Canada
Obama lies and the country continue to suffer. Most people living on the east and west coasts are not aware of this information.
The Obama Administration is the biggest job killer going. I certainly hope he is voted out this year. I don’t think this country can withstand another 4 years of his policies.
Obama says he supports drilling and exploration. He lies. Facts show that Obama is anti-oil, anti-natural gas, and anti-business. No matter what he says.
Ah yes, the O&G whine as they release income statements with record profits.
It doesn’t matter if O&G ruin the Gulf and put thousands of fishermen and shrimpers out of business, why they can go to work cleaning (yeah, right) beaches and marshes. A whole new industry of clean-up workers on O&G payroll to make them look like good citizens.
By gone days to fish, shrimp and crabs. Why there are fish farms now that can create much more GMO caches than the piddly shrimp trawlers could haul out.
Fill our Gulf with black gold, Texas tea. O&G will break the backs of tourist industry and hire them all to scoop up tar balls for the rest of their days.
The unemployment numbers would be much higher if not for the fact that many Louisiana oilfield workers are now working in North Dakota.
Ah yes, the O&G whine as they release income statements with record profits.
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When Obama blocks permits and puts the EPA on the road to create roadblocks for oil and gas, prices rise and so does profits. And the lost investments caused by Obama’s actions would kill most businesses, but Oil Companies can go elsewhere and operate in countries that actually want jobs and more oil.
So when disasters strike, coal mine collaspes, space shuttle explosions, refineries blowing up, chemical releases,we don’t have a duty to examine the reasons for the loss of life???? How about the damage to the Gulf and the States tourist industries. Do we not have a duty to do all we can to ensure that all safty precautions actually WORK ???? Poeple, quit whinning and realize that from every disaster comes investigations. Does the BP explosion in Texas City ring any dead brain cells??//
@GOP Middle-Class Murderers
Wow there is just too much ignorance in that post to even take the time to respond.
@GOP Middle-Class Murderers
Are you paid to monitor these posts and put out such gibberish? Who’s paying you?
OMG ! OMG ! O My God ! Obama Must Go !
Only Then will life come back as we know it !
GOP Middle-Class Murderers wrote:
February 6, 2012, 11:19 AM
Fill our Gulf with black gold, Texas tea. O&G will break the backs of tourist industry and hire them all to scoop up tar balls for the rest of their days.
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Watch a lot of the Beverly Hillbiliies I see. I’m sure that’s about as much as you know about it. As far as tarballs, they’ve been there since the dawn of time. Look up the Karankawa Indians of the Texas Coast. Learn something.
I support the moratorium. See the links below for why.
http://blog.skytruth.org/2012/02/gulf-monitoring-consortium-issues-6.html
http://thinkprogress.org/green/2012/02/03/418287/seven-year-oil-leak-in-gulf-of-mexico-still-spilling/?mobile=nc
Isn’t there a brand new story at the top of the page that BP just posted $7.7 BILLION in profits for the 4th quarter?
And I’m supposed to feel sorry for them because they have to follow rules?