American Elephants

Economist Dr. Loren Scott Explains Why the Moratorium is Worse Than the Spill. by The Elephant's Child

Dr. Loren Scott, Louisiana State University Emeritus Professor of Economics explains why Obama and Salazar’s moratorium on drilling in the Gulf of Mexico is worse than the spill. This is a wonderful conversation with someone who knows and understands the Gulf and the oil industry and can explain the economic effects of the administration’s misguided moratorium.

He points out that there have been 50,000 wells drilled in the Gulf with no problems.  When there is a ski-lift accident in one resort, do they shut down all the ski runs in the country?  There are around 8,000 people employed on the rigs 24/7.  Their  unemployment will result in at lest 32,000 lost jobs.  Dr. Scott’s explanation of cause and effect is devastating, and a disaster for the whole region.  Do take the time for this deeply interesting video, you will be glad you did.

The arrogance of the administration as it plays with the lives of the people of Louisiana and the stunning disinterest in the effects of their actions is breathtaking.

ADDENDUM: The video, no longer available here, is available at the Heritage blog.  It is worth your time and quite informative.

6 Comments so far
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Since there is no way drilling in the Gulf will cease simply because that oil is so needed, the moratorium was little more than a ploy, a nice way to over-react while actually doing nothing to get the mess under control.


Comment by zeusiswatching

And a way to undermine the oil industry, drive up prices, decrease domestic drilling, all of which hurts Americans, but makes “Cap and Trade” and Obama’s corrupt “green energy” agenda easier to push through.


Comment by American Elephant

Dr. Scott points out that three energy companies have already moved their rigs out of the Gulf to somewhere where they are allowed to work. They obviously believe that the moratorium will be reinstated, and will last much longer than six months.


Comment by The Elephant's Child

And it shows the modus operandi of government, which is to react to disasters after the fact. The one thing that they could have done beforehand was to require a contingency plan in the event of a leak. Immediately after the fact, they could have loosened the regulations that have hindered the clean-up.


Comment by renaissanceguy

I hold BP accountable for the spill, but I am increasingly looking at the way the U.S. Gov. has not been helping locals to clean up the mess as a huge lesson in how not to handle a disaster. So far, we haven’t any oil where I live in Florida, but we are worried.

I wonder if us locals will be allowed to clean up the mess or should we just expect a crappy handout of some sort (like a mobile home with deadly fumes) if this horror wrecks our coastline? Just starting to get a little skeptical of Uncle Same here. Just a little.


Comment by zeusiswatching

[…] Professor of Economics Loren Scott from Louisiana State University said that about 50,000 wells have been drilled in the […]


Pingback by Obama Knows Drilling Moratorium Will Cost 23,000 More Lost Jobs, Imposes it Anyway. « American Elephants

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