The deep water drilling ban imposed on the Gulf Coast after the BP oil rig disaster in April did not affect the Gulf economy or lead to massive job losses, the Obama administration said in a report.
A report submitted to the Senate Small Business Committee said job losses resulting from the offshore drilling ban was minimal. It said only 2,000 of the total 9,700 people working on 46 offshore rigs in the area had lost their jobs.
However, between 6,000 and 10,000 workers in related sectors have lost jobs since the moratorium on drilling was imposed in May, the report said.
The overall jobs scene in the area remained stable on account of the alternative employment options provided by the cleanup activities, the study has said. BP has already spent close to $8 billion in compensations and environmental cleanup efforts so far.
However, the report was attacked by Louisiana lawmakers and drilling companies. The study did not take into account the losses suffered by small businesses in the region, said Democratic Senator Mary L. Landrieu, who is also the chairwoman of the Small Business Committee.
The Shallow Water Energy Security Coalition said the report was "an attempt to glaze over the real, devastating impact of the ban on deep water drilling."
The coalition has maintained that over 7,000 jobs would be directly impacted by the drilling ban.
The Gulf oil industry has been spooked by the drilling moratorium, as well as the planned legislative action targeting offshore drilling which they say will kill jobs, cut output and affect firms’ profitability.
“If this moratorium continues, or extremely difficult policies like unlimited liability go into effect, the Gulf would be a less desirable place to operate,” Bruce Thompson, president of the American Exploration and Production Council, said last month.
The oil industry will be hit badly if Obama administration’s proposals to roll back several oil industry tax breaks get through the legislature. President Obama had proposed tax increases to the tune of $31 billion on oil companies in his first budget, and he raised tax proposals to $37 billion in last year’s budget.
source: www.ibtimes.com
