Drilling Moratorium

[CajunFun]

Did the local media cover this?

http://ultoday.com

[LsuULfan]

_ Did the local media cover this?

http://ultoday.com _

Have not seen it. The DA did have this on Sunday

http://www.theadvertiser.com/apps/pb...ID=20105300335

[Hammer58]

In addition to the moratorium the Obama admin has redefined "deepwater" as anything greater than 500' (thats not a typo...five hundred feet) as being "deepwater". That encompases many existing shelf properties.

[Cajunsmike]

_ In addition to the moratorium the Obama admin has redefined "deepwater" as anything greater than 500' (thats not a typo...five hundred feet) as being "deepwater". That encompases many existing shelf properties. _

An industry insider is predicting you will have 1000 Louisianians laid off in the next month as a result of this decision. That does not help the state considering the negative impact to the tourist and fishing industries from the spill. Some believe this is an OK price to pay due to insure things are safer. Considering hundreds of deepwater drills have been drilled without incident over the years, the policy seems to be an overreaction. Following standard industry practices in regards to safety and well control is what is needed. I am skeptical BP did so and we are all having to pay the price for their judgment errros.

[LsuULfan]

_ An industry insider is predicting you will have 1000 Louisianians laid off in the next month as a result of this decision. That does not help the state considering the negative impact to the tourist and fishing industries from the spill. Some believe this is an OK price to pay due to insure things are safer. Considering hundreds of deepwater drills have been drilled without incident over the years, the policy seems to be an overreaction. Following standard industry practices in regards to safety and well control is what is needed. I am skeptical BP did so and we are all having to pay the price for their judgment errros. _

Given the economic impact the moratorium will likely have on this state and this area, where is the OUTCRY from our leaders (including Jindal)??

[CajunNation]

I can't begin to imagine what kind of hole the state is going to face in terms of lost tax revenue from all of this.

I also can't imagine another time when there will be a better opportunity to fix the state's financial idiocy of a unversity in every city.

If we can't be responsible adults about the state's finances, then any pain encountered in education and health care will be deserved.

[Lafitte the Pirate]

The Houston Chronicle said that there will be up to 30,000 jobs lost due to this.

This sucks really bad.

[Duggie35]

The Obama administration is simply throwing out the baby with the bath water! Until this tragic event, 10's of thousands of wells have been drilled in the Gulf of Mexico with nothing aproaching the disaster that this has caused. It is certainly a tragic event and the industry needs to focus on preventing a re-occurrence. However, everytime an airliner crashes and kills 100's of people we don't see the government grounding all of the airlines! When a traggic coal mine accident occurres, we don't see the government shut down mining for months at a time! When people get killed in automobile accidents (which happens many times every day in this country) we don't see the government clear the roadways! Why should the oil industry be any different? Could it be for political reasons???

[Boomer]

But it did shut down the building of the Nuclear plants that we need so badly after 3 mile Island-------Big mistake #1 and this is mistake #2!!!!!

[Cajun90]

The Houston Chronicle said that there will be up to 30,000 jobs lost due to this.

This sucks really bad.

I know of one drilling contractor that has already decided to de-comm two rigs and move two other rigs out of the GOM.

Another customer is currently asking us to evaluate cancellation of current orders.

FROM: LMOGA

Suspension of operations means roughly 33 floating drilling rigs – typically leased for hundreds of thousands of dollars per day – will be idled for six months or longer.
$250,000 to $500,000 per day, per rig – results in roughly $8,250,000 to $16,500,000 per day in costs for idle rigs;
Secondary impacts include:
• Supply boats – 2 boats per rig with day rates of $15,000/day per boat - $30,000/day for 33 rigs – nearly $1 million/day
• Impacts to other supplies and related support services (i.e., welders, divers, caterers, transportation, etc.)
Jobs –
Each drilling platform averages 90 to 140 employees at any one time (2 shifts per day), and 180 to 280 for 2 2-week shifts
Each E&P job supports 4 other positions
Therefore, 800 to 1400 jobs per idle rig platform are at risk
Wages for those jobs average $1,804/weekly; potential for lost wages is huge, over $5 to $10 million for 1 month – per platform.
Wages lost could be over $165 to $330 million/month for all 33 platforms
Secondary impacts: Many offshore workers live in Louisiana. The state is going to see a decrease in income taxes and sales taxes that would normally be paid by those employees. (The state does not collect a sales tax on oilfield supplies and equipment used offshore.)

The 33 gulf wells where operations are suspended were the ones inspected immediately after the Deepwater Horizon blowout (per Interior Secretary Ken Salazar); in those inspections, “only minor problems were found on a couple of rigs”.

From the Department of Interior report.....

In the period from 1971 through 2009, a total of approximately 1,800 barrels was spilled on the Federal OCS as a result of blowout events. Of that amount, 425 barrels were blowouts resulting from hurricane damage. An additional 450 barrels occurred at an oil pump during production operations.

Pretty good safety recored if you ask me.

Here is the link to the Interior Department report which I think clearly indicates that overall the industry has done an extremely good job. This one incident is extremely bad but how about we drop the guilt by associaton.

http://www.rigzone.com/images/news/DOI%20Report%20to%20Obama.pdf

[Duggie35]

Suspension of operations means roughly 33 floating drilling rigs – typically leased for hundreds of thousands of dollars per day – will be idled for six months or longer.
$250,000 to $500,000 per day, per rig – results in roughly $8,250,000 to $16,500,000 per day in costs for idle rigs;

Those rigs will not be idle for six months. These types of rigs are in short supply around the world and can easily move to Brazil, Africa or some where else on new multi-year contracts at $500,000 to $750,000 per day! Therefore, when Obama decides to allow deepwater drilling again, many of those rigs won't be available to go back to work here in the states for many years!!!! With the rigs moving out, that will create the loss of jobs directly associated with the rigs as well as the many additional support jobs that they provide. This administration has no clue as to what they are doing and the economic damage this will do to Louisiana and this Country in general! 2012 can't get here soon enough!!!!!!!!!!!!!!!!!!!!

[BGlass29]

Aka greater dependence on FOREIGN OIL. Why we are dead set on paying everyone else for something we have th largest supply of makes no sense to me.

Those rigs will not be idle for six months. These types of rigs are in short supply around the world and can easily move to Brazil, Africa or some where else on new multi-year contracts at $500,000 to $750,000 per day! Therefore, when Obama decides to allow deepwater drilling again, many of those rigs won't be available to go back to work here in the states for many years!!!! With the rigs moving out, that will create the loss of jobs directly associated with the rigs as well as the many additional support jobs that they provide. This administration has no clue as to what they are doing and the economic damage this will do to Louisiana and this Country in general! 2012 can't get here soon enough!!!!!!!!!!!!!!!!!!!!

igeaux.mobi