"Job Losses Over Drilling Ban Fail to Materialize"

"WASHINGTON — When the Obama administration called a halt to virtually all deepwater drilling activity in the Gulf of Mexico after the Deepwater Horizon blowout and fire in April, oil  executives, economists and local officials complained that the six-month moratorium would cost thousands of jobs and billions of dollars in lost revenue.

Oil supply firms went to court to have the moratorium  overturned, calling it illegal and warning that it would exacerbate the nation’s economic woes, lead to oil shortages and cause an exodus of drilling rigs from the gulf to other fields around the world.  Two federal courts agreed.

Yet the worst of those forecasts has failed to materialize, as companies wait to see how long the moratorium will last before making critical decisions on spending cuts and layoffs. Unemployment claims related to the oil industry along the Gulf Coast have been in the hundreds, not the thousands, and while oil production from the gulf is down because of the drilling halt, supplies from the region are expected to rebound in future years. Only 2 of the 33 deepwater rigs operating in the gulf before the BP rig exploded have left for other fields."

John M. Broder and Clifford Krauss report for the New York Times August 24, 2010.

SEE ALSO:

"U.S. Officials Saw Drilling Ban Costing Jobs: Report" (Reuters)

"U.S. Saw Drill Ban Killing Many Jobs" (Wall Street Journal)

 

Wednesday, August 25, 2010