Gulf Coast Cannot Afford New Offshore Drilling Ban

SMU professor highlights negative impacts of new Interior restrictions on offshore oil, natural gas operations

DALLAS, July 12 /PRNewswire-USNewswire/ -- Responding to the U.S. Department of Interior's announcement today of new restrictions on deepwater oil and natural gas projects, Dr. Bernard Weinstein, associate director of the Maguire Energy Institute at Southern Methodist University's Cox School of Business, released the following statement:

"The Interior Department's new ban on oil and natural gas drilling off our country's shores is yet another reminder of the Obama's administration's disconnect concerning not only the BP rig explosion itself, but also the monumental clean up task ahead. While this moratorium is more specific due to the persistent legal wrangling over the initially-proposed ban, it is without question detrimental to the entire Gulf economy, tens of thousands of workers, and our national energy security as well.  

"Investigation into this accident will take many months, and prudent judgment – not rash, politically-motivated policy – is needed. For guidance, the Interior Department need only look to Brazil, a country with an extensive offshore drilling industry. It has announced that it will wait until all investigation and analysis of the BP accident is completed before weighing any additional regulation or restrictions.

"Fortunately, the head of the new offshore drilling regulatory body also announced today that the Obama administration will be soliciting the public's input on future U.S. offshore drilling policies at forthcoming hearings.  Once these hearings are completed, the Administration may have a better understanding of the serious economic consequences of their decision to impose this new moratorium: the potential loss of thousands of jobs, further reliance on oil and natural gas imports, and hundreds of millions of dollars in lost wages per month. These burdens come on top of the economic dislocations to Gulf Coast residents as a consequence of the oil spill.

"The economic damage from the BP spill may be as great as that caused by Hurricane Katrina. Gulf communities need all the help possible in rebuilding their businesses and their lives. Placing new restrictions on the offshore oil and natural gas industry is not helpful. And prolonging the Gulf Coast's economic adversity with a new drilling ban is certainly something they cannot afford."    

To learn more about the new moratorium, or to schedule an interview with Dr. Bernard Weinstein, please contact: [email protected]

Dr. Bernard Weinstein, associate director of the Maguire Energy Institute and adjunct professor of business economics in the Cox School of Business at Southern Methodist University, has research and policy experience in fossil fuels, nuclear and renewable energy. He has worked with national governments and private firms engaged in international commerce, and he recently completed an assessment of the costs and benefits of the North American Free Trade Agreement. In recent years, he has participated in economic development projects in China, India, Thailand and Mexico. Weinstein offers up-to-date perspectives on economic conditions and prospects.

SOURCE Dr. Bernard L. Weinstein