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With Drilling Stopped, Losses Could Multiply

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http://www.nytimes.com/2010/06/05/us/05gulfecon.html?hp

Chett Chiasson, the executive director of Port Fourchon in Louisiana, has a message for President Obama — and any Americans who have applauded the administration’s decision to halt deep-water drilling in the Gulf of Mexico: You just don’t get it.

“I don’t know that this country realizes the cascading impacts of this moratorium,” said Mr. Chiasson, whose estimates that his port handles 90 percent of the traffic servicing the deep-water oil and gas industry in the gulf. “It’s going to have an impact for years to come.”

The Interior Department’s six-month moratorium on deep-water drilling most directly affects 17 oil companies, including multinational giants like BP, Exxon Mobil, Shell and Chevron. The order, issued May 27, forced 33 rigs to shut down operations.

Every one of those rigs is serviced out of Port Fourchon, according to Mr. Chiasson, so the drilling ban could end up slashing the incomes of thousands of other workers — from welders and divers to caterers and drivers — who depend on the industry.

One oil industry group, the Louisiana Mid-Continent Oil and Gas Association, has estimated that each exploration and production job represents four supporting jobs in and around the region. If that is the case, thousands of jobs — and millions of dollars in wages — could be affected by the work stoppage, the group said.

With that in mind, a growing chorus of residents, business owners and local politicians in the gulf region are imploring the Obama administration to reconsider the deep-water drilling ban.

“We need to know what you are prepared to do to prevent catastrophic damage to our battered economy,” said an editorial addressed to the president that appeared in The Times-Picayune of New Orleans on Friday. “It is not clear, Mr. President, why it will take six months to determine what went wrong on Deepwater Horizon and how to remedy safety deficiencies.”

In a separate letter Wednesday to Mr. Obama and Interior Secretary Ken Salazar, Gov. Bobby Jindal of Louisiana said: “During one of the most challenging economic periods in decades, the last thing we need is to enact public policies that will certainly destroy thousands of existing jobs while preventing the creation of thousands more.”

I wonder how long before people turn on Obama for this? The oil industry certainly provides lots of local jobs and this ban on drilling has been enacted with no plan for those that will suffer economically. Unless of course BP is expected to pick up the tab for all this?

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Expert: 25,000-80,000 Houston jobs at risk with new drilling restrictions

http://www.kens5.com/news/Expert-25000-80000-Houston-jobs-at-risk-with-new-drilling-restrictions-95629279.html

The long run fall out of these types of things is often stupid government policies afterwards. Imo in the USA the political class was just looking for an excuse to shut down drilling as it was.. and they got it.

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Obama forgets...for he is a tw@ and a puppet, that oil is wealth.

turning off his own wealth is madness. but....having a proper regulator making sure things are done properly would help. I hear that permits to drilling in the gulf are laughably simple to get if you are an oil major.

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Guest sillybear2

Somebody needs to tell Obama about the law of unintended consequences, his arbitrary decisions will cost more jobs than the halted fisheries, talk about man made disasters.

As for constantly emphasing "British Petroleum" like it's a dirty word he doesn't aknowledge the fact British troops are getting shot at as part of the US's hopeless campaigns, in fact he doesn't acknowledge them at all, nor do all the unthinking retarded rednecks Obama is whipping up with his cheap popularism :-

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Edited by sillybear2

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More and more companies would rather deal with stable, forward looking dictatorships in the developing world. In a democratic society the ignorant masses and their chosen leaders take stupid decisions without thinking through the consequences.

If this spill was in Angola which has a huge offshore drilling industry would they shut down the whole industry? No, my bet is they would behind the scenes get a lot tougher on the backup and safety equipment.. and BP would face one cracking fine. But they wouldn't go to the stupid level of stopping all new drilling.

They also would not allow an unknown legal risk to a company who is investing so much in their nation.

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Expert: 25,000-80,000 Houston jobs at risk with new drilling restrictions

http://www.kens5.com/news/Expert-25000-80000-Houston-jobs-at-risk-with-new-drilling-restrictions-95629279.html

The long run fall out of these types of things is often stupid government policies afterwards. Imo in the USA the political class was just looking for an excuse to shut down drilling as it was.. and they got it.

I wonder what the average salary of those people are?

$4,000,000,000

So that's $4bn if you take the 80,000 number and multiply it by an average of $50k a year salary.

I would assume that total job losses could far exceed this with less money being spent in the local economy.

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Guest sillybear2

More and more companies would rather deal with stable, forward looking dictatorships in the developing world. In a democratic society the ignorant masses and their chosen leaders take stupid decisions without thinking through the consequences.

Those rigs will be on their way to Brazil before the month is out, then the finished product will be sold back to the US, so another victory against foreign oil dependence and domestic unemployment, nice one Obama :rolleyes:

To be honest why should anyone take advise on safety, engineering or morality from a bunch of people who manage a set of road bridges that randomly drop out of the sky, the engineering equivalent of lego compared to drilling for hydrocarbons under 5000ft of water then a further 18,000ft of rock.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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