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La. could lose millions during moratorium

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Posted: Jun 3, 2010 11:57 PM by Ashley Rodrigue
Updated: Jun 4, 2010 1:28 AM

  Rating: 1.0 (2 votes)

Topics: moratorium, Louisiana, rig workers, state treasurer, jobs, oil drilling

State leaders are upset with President Obama's six-month moratorium on deepwater drilling and the further economic damage it could have on the state.

Governor Bobby Jindal says as many as 10,000 jobs are at stake. Oil lobbyists report more than $300 million in worker pay would be lost each month, which means less tax revenue for the state. Louisiana collects $65 billion in oil and gas revenue each year.

About 600 oil rigs are scattered across the Gulf of Mexico today. Most of them are in-service, but 33 percent are silent, by order of the president.

"Some of these same families being put out of work and losing their income due to this oil spill could now be jeopardized, could now be threatened again by this moratorium," said Gov. Jindal.

State Treasurer John Kennedy says that threat extends from the coast to the Capitol.

"Our state revenues, based on the economy, have not been doing well and treading downward, and this will contribute to that," Kennedy said.

He says almost a third of the state's $210 billion economy is reliant on oil rigs, their operators and the tiny towns that keep both afloat.

Kennedy said, "Those are big numbers and it'll impact us dramatically, but I predict if they don't reverse this moratorium, it'll impact the rest of the U.S. just as much."

The impact includes the possibility of paying the price of $100-a-barrel oil at the gas pump. State leaders say the country - in particular, the coast - can't afford that or another oil spill.

Jindal said, "What we're saying is, make sure that whatever time the federal government needs to do their jobs to oversee this industry, do that, but do it as quickly and safely as possible."

Kennedy said, "We will learn from this horrific experience, but life goes on and the energy needs of this country, which are contributed substantially by the state of Louisiana, are very important to our way of life."

Topics: moratorium, Louisiana, rig workers, state treasurer, jobs, oil drilling

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