JUST THE FACTS: Drilling Moratorium's Impact on Louisiana's Families and Economy
More Than 41,000 Have Already Signed GEST Petition Calling On President To End Drilling Moratorium
BATON ROUGE (June 14, 2010) - The six-month drilling moratorium in the Gulf of Mexico will cripple Louisiana's economy and leave thousands of families without income, particularly in coastal Louisiana, where one in three jobs is related to the oil and natural gas industry. In Louisiana, oil and gas production can be divided into three industries - oil and gas extraction, refineries and pipelines - which in 2005 supported more than 15 percent of the total household incomes earned in the state.
To date, more than 41,000 people have joined the Gulf Economic Survival Team (GEST) and signed the petition calling on the President to end the drilling moratorium. The petition can be found online at www.GEST.LA.gov.
How much oil comes from the Gulf of Mexico?
- Around 33 percent of domestic oil in the United States comes through the Gulf of Mexico;
- Eighty percent of the Gulf of Mexico's oil and 45 percent of its natural gas comes from "deepwater" operations that occur in more than 1,000 feet of water.
How many jobs does the oil and gas industry provide in Louisiana now?
- The Louisiana Department of Economic Development estimates that the active drilling suspension alone will result in a loss of 3,000 to 6,000 Louisiana jobs in the first two to three weeks;
- The ban could cost Louisianans more than 10,000 jobs within a few months;
- The state risks losing more than 20,000 existing and potential new jobs during a 12 to 18 month period, if the federal panel takes longer than six months to do their reviews and write their reports;
- Coastal Louisiana, where one in three jobs is related to the oil and gas industry, services around 90 percent of deepwater operations in the Gulf of Mexico;
- The Louisiana Department of Natural Resources estimates that an average of two supply boats per rig work every day with rates of $15,000 to $30,000 a boat, which means that suspension of drilling activity will result in a nearly $1 million loss per day in supply boat rental income. Each drilling rig job supports four other jobs in local communities.
What is the overall impact of the Oil and Gas Industry in Louisiana?
- Oil and gas production directly and indirectly supported $12.7 billion in household earnings in the state, representing 15.4 percent of total Louisiana household earnings in 2005;
- The industry supported, directly and indirectly, more than 320,000 jobs and $70.2 billion in business sale in Louisiana in 2005;
- In 2006, more than 58,000 Louisianans worked in extraction, pipeline and refining jobs.
How much does the oil and gas industry contribute to Louisiana's state revenues?
- For the 2006 fiscal year, the oil and gas industry paid more than 14 percent of total state taxes, licenses and fees collected by the state of Louisiana;
- This revenue amounts to more than $1.4 billion - a substantial portion of Louisiana's budget;
- Because this sector generated $12.7 billion in Louisiana household earnings, state government collected more than $890 million in related taxes in the 2006 fiscal year.
How much does the oil and gas industry contribute to local government revenues in Louisiana?
- Using conservative estimates, the oil and gas industry paid more than $172 million in ad valorem taxes to local governments in Louisiana in 2005;
- In 31 of Louisiana's 64 parishes, these taxes exceeded $1 million and in 12 Louisiana parishes they exceeded $5 million;
- Because this sector generated $12.7 billion in household earnings, more than a half billion dollars ($560 million) was added to the treasuries of local governments in the 2006 fiscal year.