• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • One Year After Oil Spill Was Stopped, Drilling Permits Down Sharply

    The Obama administration is approving deepwater drilling permits at a pace of just 1.7 per month — a dramatic drop that is jeopardizing thousands of jobs for struggling families in Louisiana and neighboring states.

    The latest figures from the Bureau of Ocean Energy Management, Regulation and Enforcement also reveal a sharp reversal in permit issuance for shallow-water wells. Greater New Orleans Inc. compiled the data as part of its Gulf Permit Index.

    Over the past three months, deepwater permits are down 71 percent from their historical monthly average of 5.8 permits per month. Shallow-water permits, which had begun to rebound, have fallen in recent weeks by 34 percent from the historical monthly average of 7.1 permits.

    One year ago today the Macondo well was finally capped after nearly three months of spewing oil in the Gulf of Mexico. Over the course of the past year, the Obama administration has issued new rules for offshore operators but remains far off track on permitting. Meanwhile, Michael Bromwich, BOEMRE’s director, said this week that more regulations are on the way.

    That’s bad news for job creators in the Gulf of Mexico.

    According to a new study conducted by Quest Offshore Inc., 60,000 jobs have been lost in the Gulf Coast states since 2008 — due in part to the slow economy, President Obama’s drilling moratorium and the lack of new drilling permits.

    Each deepwater rig produces 700 jobs for Louisianans alone; a shallow-water rig generates 350 jobs, according to Greater New Orleans Inc. Those numbers add up in a country facing a 9.2 percent unemployment rate.

    But it’s not just Gulf Coast states bearing the burden. The Quest Offshore study, commissioned by the National Ocean Industries Association and the American Petroleum Institute, reveals that communities across the United States are suffering from the Obama administration’s policies as well.

    An estimated 190,000 potential jobs across the country are at stake unless the pace of permitting increases and bureaucratic hurdles are lifted. Those new jobs, coupled with the 240,000 jobs already supported by the Gulf offshore oil and gas industry, have the potential to contribute nearly $45 billion America’s economy by 2013.

    The jobs would also bring much-needed revenue into federal coffers — particularly at a time of record budget deficits. Declining production at existing wells and bureaucratic delays on new wells in the Gulf of Mexico are costing the federal government more than $4 million per day in forfeited royalty payments, lease sales and rents.

    Posted in Scribe [slideshow_deploy]

    13 Responses to One Year After Oil Spill Was Stopped, Drilling Permits Down Sharply

    1. Jeff, Illinois says:

      Yeah throw caution out to the wind . . we just gotta a get another oil rig disaster going again .. !!

      • Mike says:

        Should we close coal mines due to disasters, stop using huge cranes because of an accident? Your and 0's knee-jerk reaction is the most damaging. Accidents happen. 50K+ people die each year driving their cars. Should we turn to bicycles? Surely we should ban cell phones from cars?

    2. charandcoop says:

      I can't understand how we've allowed this one person to ruin this country. And I don't see anyone doing anything to stop him and his administration. That's the real scarry part.

    3. Ray says:

      Jeff in Il – When you were learning to ride a bicycle, how many times did you fall? And, how many times did you get back up and try again? In more than 30 years of drilling in the Gulf, there had not been one oil rig disaster. Even during Katrina, not one oil rig had to be shut down due to leaks. The oil drilling industry had a pretty darned good safety record up to last year. If your job was one of the ones lost due to this insane "permitorium", you'd be crying for it to stop! This president is simply out to destroy more jobs in this country through more and more regulation. He is out to destroy the economy through any means he can! Prove me wrong!!!

    4. L.G. D says:

      Oil is necessary for our economy to survive. Our national security is dependent on drilling here and not relying on other countries, whether in the middle east or elsewhere. We have the oil and gas and it is up to our politicians to see that it happens by stopping the EPA and other government agencies from blocking companies from drilling for it. We need a President how also wants to protect and defend the US and stop worrying about becoming the Leader of the new Global Government. 2012.

      • Guest says:

        This kind of argument is made all the time and makes no sense. Unless you're arguing for nationalizing oil, which I would support. It's only "our" oil as long as it's in the ground. Once it's been drilled, it's a commodity sold on the "open" market to any nation that can pay what the driller demands. Because it was drilled in the US or US waters doesn't mean we get it. How hard is that to understand. Evidently much too hard for any fool drooling "Drill, baby, drill."

    5. @FBRASWELL says:

      Great presentation Rob! The video gives a personal feeling to the report. We're not talking about statistics. Real people are losing their jobs because of policy decisions made by the administration. The final quote in the video was powerful: "I don't see how new jobs are being created, when every day jobs are being destroyed."

    6. Jeff, Illinois says:

      To Ray . .

      When I learned to ride a bike and fell it didn't cause Billions of dollars of property and economic loss. Patrons of this website are amazingly myoptic . . When the Space shuttle blew up . . we didn't say Oh, well . . lets just get right back up into space immediately . . these things just happen . . No we slowed down and tried to learn something and be more cautious . .


    7. Pingback: The Obamoratorium Has Now Cost Us 10 Gulf Rigs

    8. Pingback: JOBS, JOBS, JOBS- GONE, GONE, GONE! | Are We Aware Yet?

    9. Pingback: Oil and Gas News | Lousiana Oil and Gas Association

    10. Pingback: Study: Regulations on Gulf Oil Drilling Stifle Job Creation

    11. Liberalsownfalsehood says:

      Keep it up Libs and eco-zealots! Cling to your Pope Al Gore and global warming religion! Thanks for keeping hundreds of thousands out of work, while your do nothing pretender in chief did nothing except walk on the beaches weeks after the gulf oil rig blew up.

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.