Posted on 12/06/2010 8:42:42 AM PST by Ernest_at_the_Beach
While the original story of the new drilling moratorium was covered here at Hot Air, the new unemployment numbers which came out this week highlight an even more disturbing aspect of this proposal by the administration. Jack Gerard of the American Petroleum Institute (API) sent out a rather graphic warning to President Obama on Wednesday which laid out the danger of such a decision.
Jack Gerard warned that the administration’s decision today not to allow offshore drilling in the eastern Gulf of Mexico, the Atlantic and the Pacific in the government’s next five-year drilling plan could result in the loss of tens of thousands of American jobs, billions less in government revenues and an increasing dependence on foreign energy sources.
In a longer study compiled by API, some of the alarming facts and figures are brought to light.
By 2020, these jobs could have grown nation-wide to more than 57,000
Also by 2020, government could have reached annual revenue collection exceeding $3.8 billion and still rising. By extending a moratorium on these areas which have been held off limits for decades, Americans are denied benefits such as these from this valuable economic activity.
But even this doesn’t tell the full story. Retreating on this front will impact far more than the direct jobs and revenue involved in energy exploration. As this story shows, the industry stretches out to provide opportunities far from the actual oil rigs. A prime example is that of Thomas Clements, who operates a business manufacturing machine parts for equipment used in energy exploration. He’s been struggling with government energy policy and its effect on his operation for some time now and went to petition his government for redress of grievances back in August.
At that time, thanks to the deepwater drilling moratorium, Clements, who co-owns a small business that produces metal parts for oilfield equipment, had no income. Not quite three months later, Clements still lives on his savings — and business is down by 54 percent for the year.
“Right now, we’re living off savings and that’s it,” he said Monday on a conference call. “It’s everything we’ve saved up. We’ve worked our entire lives to get to this point. … We were supposed to be in the black this year. We’re definitely still in the red and, in the future, we’re not too sure what it looks like even though the moratorium is lifted.”
Until the Interior Department begins to issue permits at a higher rate, Clements said, his business prospects will remain uncertain. While the drilling moratorium technically applied only to deepwater drilling, the Interior Department’s permits for shallow water drilling slowed, too — by 53 percent. The department has yet to pick up the pace. It continues to issue 3.8 fewer shallow-water drilling permits a month than it did the year leading up to the oil spill. No new deepwater permits have been issued since May.
This “permitorium” as it is being called is hitting people across a number of industries and the service sector as well. Even in spaces where drilling is not being expressly forbidden, the government is dragging its feet on the issuance of new permits bringing a large swath of economic activity – along with the corresponding jobs which might be produced – to a screeching halt.
The last gulf oil spill was bad news, no doubt. And it serves as a reminder that we must continue to work to increase safety and containment measures. But it does nothing to alleviate our need for both domestic energy resources in an uncertain global climate and the jobs that come from such endeavors. Let’s hope the next Congress can talk some sense into those currently holding opportunity in check.
Increases dependence on foreign oil
Ends jobs
Removes any tax income
Creates illusion of failure.
All and all, everything this administration wants to do to this country.
That’s the idea. Although the loss of more than 50,000 jobs is probably less important than the loss of money to the Saudis, Indonesians, and others, and large increases in the price of energy.
Obama wants to see us all freezing in the dark.
And this BP oil spill was no disaster.
Why has the media coverage on this BP “disaster” dropped by factor of a trillion times ?
Global warming hoax, swine flu hoax, this bp fiasco, need any more proof the media are not reporters but marxists/democrats posing as reporters, lying to advance socialism.
We support the Saudi family by being forced to purchase their oil. They use our money to support terror groups around the world that want our distruction. We are so smart it is sickening. The oil in the U.S. belongs to the people, not the government.
If this president were white it would be the biggest racist scandal any president had ever endured.
What a pos.
The list, ping
Let me know if you would like to be on or off the ping list
More money for the muslims, and therefore, more money for jihadists.
Makes sense to me. Have there been any traffic accidents the last few years? Let’s ban all cars.
Obama,Pelosi and the progressive DNC not the mainstream media care. Remember Pelosi said unemployment insurance creates jobs. How in God's beautiful green earth is Obama et al not impeached and in jail; rather than the media protecting them is beyond frightening. Obama hates America.
Obama,Pelosi and the progressive DNC Nor... the mainstream media, care.
Remember Pelosi said... unemployment insurance creates jobs.
How in God's beautiful green earth is Obama et al not impeached and in jail; rather than the media protecting them is beyond frightening. Obama hates America.
So where is the L/MSM on this issue. They seem so quiet. But of course.
Exactly. Why will not the Pubs push , even though the votes will not be there, for all forms of our own domestic energy resources? We will need our oil, shale, gas, coal and the safe building of nuclear energy and we will need it soon. Pubs could educate the public on this if they only would!!!
Nahhh. Americans would rather pay 4 or 5 bucks a gallon for IMPORTED Arab oil.
The drilling moratorium should be the biggest scandal of the 0bama regime. It has been done without legislation or elected representatives debate. It is costing millions and putting some hard working people out of jobs, likely to go far offshore for good. This is as bad as the many czars that have been appointed without Senate oversight into funding or approval. 0bama needs to be held accountable and this is one situation that should be causing a huge outrage.
If possible our “energy policy” MUST include:
1. Build as many nuclear plants, as quickly as possible
2. Drill everywhere there might be oil. Sell to china if there is more than we need. Tax it to pay off the national debt.
3. Somebody please try ferrite-ferrite batteries.
DG
It is NOT a moratorium! It is a total offshore driling BAN!!!
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