The moratorium immediately shut down 33 deepwater rigs in the Gulf of Mexico, including 22 near Louisiana. According to the Louisiana Department of Economic Development, this action could cost 3,000 to 6,000 Louisiana jobs in the next two to three weeks and potentially 20,000 by the end of next year. For every one employee on an oil rig, there are nine employees onshore supporting that one employee. These are good paying jobs that contribute to the Gulf region's economy.
Further, estimates show lost wages per month from direct and indirect jobs are $165 million to $330 million, and the idle offshore service vessels used by the 33 platforms represent $1 million in lost revenue per day. Expensive to run, these exploration and production operations, once stopped, could take years for the industry to get back up and running as the exploration and production process for oil and natural gas is slow.
Already residents, business owners and local politicians in these coastal communities are asking the president to reconsider as these actions have created much uncertainty and economic instability, with the potential for ripple effects far and wide. Manufacturers who make and supply the equipment, services, engines, boats and materials such as steel and concrete can expect massive economic consequences the longer this moratorium goes on. As a result, thousands - if not hundreds of thousands - of jobs will be lost