Rally For Economic Survival

On Wednesday July 21, 2010, fourteen employees of Action Specialties and family members attended the Rally for Economic Survival in Lafayette, LA at the Cajun Dome. The purpose of the rally was to heighten awareness and send a message to Washington that the moratorium on deepwater drilling will have a devastating impact on the jobs and economy of the State of Louisiana, the Gulf Coast Region, and the entire country. Speakers ranged from oilfield workers and family members, representatives from the seafood and restaurant industries, local parish presidents, and both the Lt. Governor and Governor of the state of Louisiana.

Eleven workers on the Deepwater Horizon lost their lives in that tragic accident. The rally started with ninety three seconds of silence in remembrance of these workers and their families. No one wants a repeat of this tragedy, and the industry has taken steps and will continue to take steps to prevent this from ever happening again. The culture of South Louisiana is intertwined between the oil and gas industry, the seafood industry, as well as a love of hunting, fishing, and the coastal environment. Louisiana does not need to make a choice between offshore drilling and environmental responsibility. Responsible drilling and a clean environment can and must coexist.

The moratorium has done more than stopped drilling. It has brought to a standstill economic recovery along the Gulf Coast.

In one act, the Obama Administration has signed the pink slips of tens of thousands of Louisiana and Gulf Coast citizens.
The financial consequences from the moratorium will eventually create an economic ripple effect that will negatively impact every citizen of the United States.
Consumers will bear the brunt of the federal drilling moratorium paying more everywhere from the pump to the grocery store.

The Administration’s own hand selected panel of engineers and other scientists did not recommended this moratorium. They recommended that additional safety measures be investigated and put in place while drilling continues. The moratorium has been defeated in Federal Courts two times, calling it arbitrary and capricious. When the judge asked the attorney for the government if they had even considered the economic impact the moratorium would have, he said No. The effects of the moratorium reach out far greater than the thirty three deepwater wells addressed in the moratorium. There is a de-facto moratorium on all drilling in the Gulf, as the issuance of drilling permits, including shallow water wells, has come to a halt. All of the rigs in the Gulf have passed inspection since the Deepwater Horizon tragedy. The moratorium is often referred to as a six month moratorium. According to LSU, even a six month moratorium would result in a loss of $2 billion to Louisiana’s economy and thousands of lost jobs. The fact is that the moratorium is for a minimum of six months, and will not be lifted until the Administration’s commission recommends it to be lifted. One commission member has been quoted as saying the moratorium could last well into next year. While rigs lay idle and employees are out of work, this commission did not even hold their first hearing until July 15, 2010. There is no sense of urgency.

The oil companies cannot allow these rigs to remain idle. Plans are already being made to move these rigs overseas, along with the jobs that these rigs provide, where there are fewer or no environmental or safety regulations. Due to the costs to move the rigs and the contracts that would be entered into, once these rigs leave, they would not return for at least five or six years.

Because of the uncertainty as to when the moratorium will be lifted and when drilling permits will be issued, spending by the oil companies in both deep and shallow water has practically come to a halt. Not only does this affect the jobs on the rigs, but also the boat companies and their crews, helicopter companies, offshore catering companies, tool and supply companies, uniform and safety equipment suppliers, and the many other service companies providing services to the rigs.

When the President visited our state after imposing the drilling ban, Louisiana Governor Bobby Jindal asked the President what our workers were to do while the ban was in effect. His response was to get a check from BP. When the Governor asked what if BP does not pay, because the workers are out of work because of the moratorium and not because of the spill, his response was let them get an unemployment check. The Governor told him that he does not know the people of Louisiana. We are not asking for handouts. We don’t want a BP check. We don’t want an unemployment check. We just want to be allowed to do our jobs.

The oil industry shares the president’s goals of making drilling safer. The industry would at least like the opportunity to sit down with the Administration to bring its own suggestions to the table, and to find out what the Administration wants them to do. The industry wants the Administration to tell them if they want more equipment in place, tell them what equipment. If the Administration wants them to hire more people, tell them how many. If the Administration wants more safety guidelines, tell them what guidelines and they will do it to get back to work. The conflict between the driller and the company man has always existed, and may be a cause for human error that could compromise safety. It has been suggested that the Administration hire rig marshals, similar to the U.S. Air Marshals, to be located on every rig to be the final arbiter on decisions involving safety issues. The rigs could go back to work as soon as the marshals are placed on the rigs. However, the Administration will not even open this dialog.

Over the last couple of years we have seen collapses in our banking, real estate and auto industries, resulting in billions of dollars of government funds to bail out these industries. This blow to our economy has cost countless jobs because the business is no longer there. In the oil industry, the business is there and the jobs are there, but our own elected officials have stepped in and said that you cannot work even though the jobs are there, and in spite of two Federal Court decisions that say the Administration has overstepped their authority. The employees in the oil and gas industry do not want a bailout. They just want to do their jobs.

On a personal note, we have already written to the governor, our congressional delegation, and to the White House. We attended the rally to show our support for lifting the moratorium. However, we cannot let this message die in Louisiana. This is not just a Louisiana problem, but this is a problem for the entire country. Our economy is still fragile while attempting to come out of the latest recession. The effects of the moratorium could be too much to overcome with the economy in its present state. Attached is a list of only a sample of products made with petroleum, ranging from items as diverse as lipstick to computers. We will be contacting our out of state vendors to make them aware how important this issue is, and to show them how this will impact there businesses as well. We will also ask them to contact the White House, their own congressional delegations, and their own state governments to support lifting the moratorium so people can go back to work.