BP Plc’s oil spill may cost the U.S. Gulf Coast region 17,000 jobs and about $1.2 billion in lost economic growth by year-end even if the flow is stanched permanently next month, Moody’s Analytics said in a report.
Under a more pessimistic scenario in which the oil spill continues through December and President Barack Obama’s six- month moratorium on deepwater drilling is extended, economic losses may reach $7.4 billion, and more than 100,000 jobs would be lost, Moody’s said today in a report written by Marisa Di Natale, a director based in West Chester, Pennsylvania.
Louisiana, with its heavy dependence on fishing, aquaculture and oil extraction, and Florida, which relies on tourism, are likely to be hardest hit by the spill, the report said. Outside the five-state Gulf region, which also includes Texas, Alabama and Mississippi, the spill’s impact is likely to be negligible, according to the report.
“We’re talking about a very localized impact,” Di Natale said in a conference call after the release of the report. “We don’t think there’s going to be a major impact when we look at the national economy.”
The Moody’s forecast assumes the well will continue to leak until early August, when two relief wells stop the flow permanently, and that none of Florida’s Panhandle beaches will be closed as a result of the spill.
Obama’s Moratorium
The report warns that the six-month moratorium on new deepwater oil-drilling alone may cause more job losses than the spill’s direct impact on Florida tourism.
The oil leak may potentially be stopped sooner than Moody’s baseline scenario. BP Plc halted the flow of oil from the well for the first time July 16 and was given permission earlier today to keep the well closed for another 24 hours.
A separate, industry-funded report released today also warned of the impact of the moratorium on new deepwater drilling, saying it is “crippling the local economy” and may cost the region 8,169 jobs and about $2.1 billion in economic losses in its first six months.
The study, commissioned by the American Energy Alliance, the advocacy arm of the Institute for Energy Research, a Washington-based research group, predicted that nationwide job losses will reach 12,000 in six months, costing the U.S. economy about $2.8 billion in lost activity and $219 million in tax revenue.
“The moratorium could be more costly than the oil spill itself,” Joseph R. Mason, author of the study and professor at Louisiana State University in Baton Rouge, said in a release accompanying the report. “By stifling one of the area’s primary economic engines, the administration is crippling the local economy and risking long-term consequences.”
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Hi mike peters here, cosmic blessings to everyone out there, i am another yourself. Aotearoa New Zealand beginning and end, everyone knows there’s something different about us Kiwi, we are going to show the world how to live in love, peace and harmony. Firstly the need to free minds from television,radio,newspapers,billboards the endless worry of bills and money that are a diliberate tool to seperate ourselves from our hearts intention. Our hearts natural intentions are to live/exist in harmony, those that know the cycles of time have exploited this knowledge. The land of the rising sun, heavens children. Global Research realnews websites and Pacific Free Press websites, blogs such as Lord Stirling’s Europe blogspot and Jeff Rense are all saying the same scary stuff, about global bankster elite illuminate ww III The one global dollar. Already read between the lines in whats going on with investors in this country. We as the people cant trust a government that knows about our galactic earth and universal connection and still continues to up hold a charade of wellness. We need to value the prisoners in our jails, a peace in prison programme keeping family members connected to keep the famillies together when one member of the family is imprisoned every family member suffers. Its calm heads all round. There are those imprisoned in this country that are honourable men and have an influence over a lot of people in this country Aotearoa New Zealand, there are good men that need to come together, valueing the women and children, free the children from school curriculums basic universal human rights stuff. Fight the honesty in the courts of all drugs being made honest , questioning the honesty of alcohol, and putting the responcibility of educating the children back in the parents hands witrh community support aroha and koha stuff,love and giving.
Gulf of Mexico oil spill is an international disaster and brings about many banes for the world. There have already been written tons of analyses on the pollition and environmental hazards in the deep sea and neighbouring land – most prominently Louisiana state. It all started with the explosion of Deepwater Horizon Rig Station on April 20, 2010 that killed 11 platform workers and injured 17 others. Consequent to explosion, a big leak hole was created in the drilling area of sea bed and oil reserves down the sea bed started gushing out. The gusher was estimated as 35,000 to 60,000 barrels per day. So you can well imagine the hazard of oil spill covering the sea level of Gulf of Mexico. Marine life about 5000 sq. miles around the epicenter of the leak is either dead or endangered, fishing is practially eliminated in this area for a long time to come. Dioxide and monoxide of Sulphur, Benzene, Lead (all dangerous to human health) are spreading over coastal areas of Louisiana.
But the author has touched another serious aspect. USA is hit drastically by recent Recession/Depression and has not come out of it. Unemployment has hit all time record. This tragedy has just multipled American problems as estimated 100,000 jobs would be lost. So the tragedy doesn’t end with the plugging of the leak. The real hardship would go a long way.