Governor Jindal: Even One Job Lost Is Too Many; Obama Administration Failed to Consider Economic Impact of Moratorium

Statement

Governor Jindal released the following statement today on the Obama Administration's testimony in the Senate Small Business Committee about the Administration's "Inter-Agency Economic Report Estimating the Economic Effects of the Deepwater Drilling Moratorium on the Gulf Coast Economy":

"It is stunning that the Obama Administration explained today that the loss of up to 12,000 Gulf Coast jobs and $1.8 billion in total spending by drilling operators due to their six-month deepwater drilling moratorium was somehow good news because it was less than expected. It is even more unbelievable that an Administration official testified about these anticipated job losses after admitting that the Administration did not consider the economic impact of their deepwater drilling moratorium at all before implementing it.

"These thousands of jobs don't just represent workers, but families and entire communities along our coast. The loss of even one Louisiana job in this national economic recession is one too many. Indeed, the Louisiana Economic Development Department (LED) estimates that job losses as a result of this federal moratorium, which a federal judge already ruled was "arbitrary' and "capricious,' could cause Louisiana alone to lose around 20,000 existing and potential new jobs if the moratorium continues. LED also found that even for many of those employees who still have jobs, their hours have been reduced, which results in lost payroll and reduced economic activity that contributes to the ripple effect of harm caused to our economy by the moratorium.

"Additionally, three deepwater rigs have already left the Gulf of Mexico for Nigeria, Egypt, and the Congo and their contracts at these new locations overseas indicate they will all be there for around a year or even longer. Therefore, the Administration's characterization of the moratorium job losses as "temporary' is disconnected from reality. LED found that other drilling companies are actively exploring additional opportunities to relocate rigs as the moratorium continues. As these rigs leave they take Louisiana jobs with them -- some direct jobs and many more support services and indirect jobs.

"Furthermore, the Administration's de facto moratorium on shallow water drilling -- through new permitting requirements that are causing severe permitting delays - is also exacerbating the job losses caused by the deepwater drilling moratorium. The federal government approved an average of 14 permits a month for shallow water operations in the 11 months before the moratorium, and they have only approved a total of four permits since the moratorium on deepwater drilling was issued. Shallow water OCS drilling activities support thousands of Louisiana jobs in addition to those related to deepwater activity."

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