The ChamberPost

Already Hundreds of Gulf Jobs Set to Move Overseas due to Obama Moratorium

by Meg Bloomgren

Today’s Houston Chronicle reports that international oil field services company Baker Hughes is relocating hundreds of American jobs overseas as a result of the federal moratorium on offshore energy exploration. 

Baker Hughes CEO Chad Deaton made the announcement yesterday at Rice University that the company will relocate 300 of its 2,100 Gulf-based employees overseas and also move 25 percent of its assets.  Deaton warned that the moratorium and the real uncertainty caused by it could lead to companies moving operations from the Gulf indefinitely in the months ahead.  Deaton said that the moratorium could cost 20,000 jobs directly involved in offshore operations, and 200,000 indirect jobs in the coming years. 

This announcement further demonstrates that the Obama administration’s ill advised decision in late May to put America’s resources in the Gulf under lock and key will have long-term consequences for our nation.  In addition to thousands of jobs lost, the moratorium will mean more oil imports at potentially higher prices to consumers and less economic growth. 

Perhaps as troubling as the existing moratorium in the Gulf of Mexico is legislation being considered in both houses of Congress this week that would only add to the expected job losses caused by the moratorium. In its current form, H.R. 3534, the "Consolidated Land, Energy, and Aquatic Resources Act of 2010" (our Key Vote letter in opposition) would dramatically increase energy taxes and create regulatory conditions that make energy production cost-prohibitive, not just in the Gulf, but throughout the entire country, which would increase U.S. dependence on imported energy and jeopardize thousands of jobs across the U.S.

The U.S. Chamber along with a coalition of Gulf business groups is calling on the Obama Administration to immediately lift the moratorium on jobs and growth in the Gulf of Mexico.  Lend your voice to this effort and send a letter to President Obama and Vice President Biden today.

Adding Insult to Injury on the Gulf Coast

by Meg Bloomgren

This morning business leaders from the Gulf Coast region gathered on Capitol Hill to discuss the economic hardships and uncertainty they face as a result of the Obama administration’s blanket moratorium on oil and natural gas exploration in the Gulf of Mexico.

The U.S. Senate Committee on Small Business and Entrepreneurship, led by Senators Mary Landrieu (D-La.) and Roger Wicker (R-Miss.), held a hearing entitled "The Deepwater Drilling Moratorium: A Second Economic Disaster for Small Businesses?"  Witnesses included:  Don Briggs, President of the Louisiana Oil and Gas Association; Dr. Joseph R. Mason, Chair of Banking at the E.J. Ourso School of Business at Louisiana State University; Ethan Treese, Vice President of Dunn and Bradstreet;  Leslie Bertucci , Owner of R&D Enterprises; Troy Lillie, a former refinery worker for Exxon Mobil in Baton Rouge; Charlotte Randolph, President of the Lafourche (LA) Parish, and Kimberly Nastasi, CEO of the Mississippi Gulf Coast Chamber of Commerce.

Senators Landrieu and Wicker  expressed the desire of the committee to receive clear answers from the Obama administration on why or when the moratorium policy would be changed.  The Senators echoed the testimony of Louisiana business owner Leslie Bertucci, who noted that, "the moratorium will not resolve damage to the ecosystem or to the families who lost loved ones, but will instead add insult to injury," in a struggling region. Leslie Bertucci’s  R&D Enterprises, based in Metairie, Louisiana, rents heavy machinery including oil well equipment & supplies.  Her business is down significantly since the moratorium was issued in late May and in order to keep her employees working, she and her husband have slashed their own spending by 75%. She made it clear that her and her employees, "don’t want to file claims; we want to work and remain self-sufficient." 

Troy Lillie, a former refinery worker for ExxonMobil, told the Senators about his employment history supporting the oil and gas industry and the uneasiness that the moratorium has brought for his family over the past 60 days.  As a result of the moratorium, his son-in-law will soon be transferred to work on a rig overseas instead of in the Gulf, leaving his wife and two young children without him for months at a time.  However, he said that his family is "lucky" because they still have work, unlike many of his neighbors. 

Kim Nastasi of the Mississippi Gulf Coast Chamber of Commerce said this was supposed to be the year that the Gulf Coast was "going to be back" following Hurricanes Katrina and Rita and the economic recession. She noted that while the oil spill affected the community, the moratorium is having a greater "economic multiplier effect" on small businesses throughout the state and region. She urged the administration to reconsider the moratorium and understand that the loss of jobs is "extraordinary and it’s real."  Natasi pointed to a preliminary business impact analysis of the drilling moratorium’s effects on Mississippi conducted by Dunn and Bradstreet, which said that a total of 379 Mississippi businesses and nearly 3000 employees will be impacted negatively in the short-term.

Join the voices of today’s hearing and send a letter today to protest the standstill on energy exploration activities in the Gulf.

Voices from the Gulf Coast on Economic Survival

by Meg Bloomgren

As thousands poured into the Cajundome this morning to rally against the Obama Administration’s moratorium on offshore exploration, many wanted to speak directly to government leaders in Washington, DC.

Attendees discussed firsthand their experiences trying to make ends meet for their families and businesses in an uncertain time for Gulf residents. Listen to their stories here:

Background here. A report from the Rally here. Our latest letter here and how you can send a letter to protest the standstill on energy exploration activities in the Gulf.

Energy Tour in Alaska

by Matt Letourneau

Right now, Energy Institute president and CEO Karen Harbert is addressing the 2010 Annual Meeting of the Resources Development Council.

Over 1000 attendees from across Alaska have gathered in Anchorage to hear Harbert discuss America's energy realities and opportunities.  The group is made up of representatives from virtually every industry in Alaska, from transportation and tourism to oil and gas.

Anchorage is the second stop in Alaska for the Energy Reality Tour. Yesterday, Harbert met with the Alaska Chamber of Commerce in Juneau, where she heard about the great uncertainties facing the business community in Alaska. The Administration's hostility to oil and gas development is of great concern to Alaskans, as are impending EPA regulations and questions about the tax code and health care costs.

Alaskans have a lot at stake when it comes to energy--which is why we're working to make sure their voices are heard back in Washington.

Rally for Economic Survival - A Call for Common Sense

by Meg Bloomgren

// Update: Voices from the Gulf Coast on Economic Survival

It was standing room only in Lafayette Louisiana’s Cajundome as the 15,000-20,000 people assembled for the Rally for Economic Survival.  Attendees called for common sense action by the federal government to lift the moratorium and send them back to work.

Louisiana Governor Bobby Jindal fired the crowd up and said that Louisianans “don’t want a check from BP, and don’t want an unemployment check from the federal government”.  Instead he noted that Louisianans just want to “go back to work”. 

Lt. Governor Scott Angelle highlighted the important role that oil and natural gas play in the U.S. economy.  He said, from 2005 to2007, the oil and gas industry paid $222 billion in taxes and $23 million in mineral royalties.  Angelle told the workers that they’re not only “helping find energy to fuel America”, but helping to “produce the revenue to pay the taxes so America can educate, medicate, rehabilitate and if all else fails, incarcerate.”

Ewell Smith, executive director of the Louisiana Seafood Promotion & Marketing Board, quoted an excerpt from President Obama’s remarks this past Monday on unemployment insurance.  The audience stood and cheered as Smith read Obama’s words… “It’s time to stop holding workers laid off in this recession hostage to Washington politics.  It’s time to do what’s right – not for the next election but for the middle class.” Smith called on President Obama to heed his own words and end the ban on jobs and growth in the Gulf.

Cherri Foytlin spoke about the personal hardships her family faced as a result of the moratorium.  Weeks before the moratorium was issued, she and her husband bought their first home after years of saving and now with her husband’s income in limbo as a result of the moratorium, they now face foreclosure.  She called on the Administration to take action today to lift the moratorium.

The U.S Chamber today posted an action alert for Americans to join these voices from the Gulf and urge the President and Vice President to end the standstill on energy exploration activities in the Gulf.  Join us by sending a letter today!

Rally for Economic Survival

by Meg Bloomgren

// Update: Reports from the Rally here and here.

Tomorrow in Lafayette, Louisiana’s famed Cajundome, more than 20,000 Gulf Coast residents will gather with a simple message for the Obama administration:  Lift the moratorium on oil and gas exploration, because it is negatively impacting the Gulf economy, thousands of American jobs, and America’s energy future.  Organized through word of mouth and other grassroots activities, the Rally for Economic Survival is the nation’s largest protest against the moratorium.  Expected speakers include Governor Bobby Jindal, country singer Sammy Kershaw, and other government and business leaders.  You can watch live beginning at 9AM central time tomorrow at www.RallyForEconomicSurvival.com.

Shipbuilders and maritime operators, caterers and local restaurant owners, engineers, rig operators, technicians, transportation companies and many other industries will be represented to encourage the Obama administration to reconsider their May 27th decision to place all energy exploration activities in the Gulf at a standstill. 

Rally organizers (including regional chambers of commerce and the Louisiana Oil and Gas Association) are encouraged by comments last week by the Obama administration’s own oil spill commission co-chairs, former Senator Bob Graham and former EPA Administrator William Reilly.  At a hearing in New Orleans, the co-chairs questioned the government’s reasoning for issuing a de facto moratorium on all exploration activities in the Gulf after government regulators had already inspected the affected rigs following the spill and signaled them safe for operations.  Federal Courts have also twice ruled in favor of stopping the moratorium.

The moratorium has significant ramifications for Gulf coast businesses and residents.  If the moratorium continues, more than 20,000 workers could lose their jobs in the next 12-18 months.  In addition, energy producers are beginning to move their rigs overseas due to rising costs of leaving rigs idle for six months or more.  When rigs leave the Gulf, they will not only leave gaping holes where high paying jobs once were, but they’ll leave American resources under lock and key causing our nation to import more oil at potentially higher prices for consumers and at great risk to our energy security.

The Institute for 21 Century Energy is supporting this important event and has championed efforts inside the beltway, including advertising, advocacy, and coalition-building, to urge President Obama to lift the moratorium on jobs and economic growth.  I’ll be on hand at the rally tomorrow and will post comments and insights from Gulf businesses and rally attendees here throughout the day.

Energy Reality Tour in the Pacific Northwest

by Matt Letourneau

I'm writing from Washington state today, where the Energy Institute's 2010 Energy Reality Tour continues.   Karen Harbert just wrapped up a speech to over 300 attendees at the 2010 Women in Nuclear conference, which brings together women from across the country who work in the nuclear industry.  It was certainly gratifying to see so many woman committed to delivering clean, emissions free nuclear power to communities from coast to coast.

With new nuclear build well underway, it is vitally important that we continue this momentum.   Proposals for dozens of new nuclear plants have been submitted to the Nuclear Regulatory Commission, and real capital is now being invested to make these plants a reality.

It has taken the nuclear industry decades to recover from the slowdown of the 1980s.   As a result, plans for expansion were shelved.  America is paying the price for those shortsighted decisions now, as the renewed focus on reducing carbon emissions has left us with few options to generate clean baseload electricity.

The mistakes from that period could be repeating themselves, as the administration has implemented a de facto blanket moratorium on offshore oil and gas exploration in the wake of the Deepwater Horizons tragedy.  That is a subject that Karen will be addressing later today with the Tacoma-Pierce County Chamber of Commerce, and at the Energy Reality Tour's next two stops, in Juneau and Anchorage later this week.

Stay tuned!

Harbert: Let's Not "Dash to Rash" on Energy Policy

by James Sneeringer

Karen Harbert, president and chief executive officer of the U.S. Chamber's Institute for 21st Century Energy, has a post today in Politico's Arena blog. The subject: the Administration's moratorium on offshore energy development. Karen begins:

The Obama administration’s moratorium on offshore development is a classic example of Washington “dash to rash” decision making. In his ruling, Judge Feldman referred to the moratorium as capricious and arbitrary.

And no wonder: The administration showed no link between the tragic Deepwater Horizon accident and all of the other offshore exploration wells, many of which have passed Interior Department inspection subsequent to the explosion. While we all believe that a renewed focus on safety measures, spill prevention, and advanced technology is necessary, we should not use the Gulf spill to halt American energy production.

Read the rest of her post on Politico.com--and read the other responses in the Arena.

Impacts of the Administration’s Ongoing Gulf Oil Moratorium

By Megan Bloomgren

The U.S. Chamber this week called on the Obama Administration to lift its six-month moratorium on active deepwater drilling leases in the Gulf of Mexico.  Imposed four weeks ago, the moratorium is already negatively impacting the local economy and thousands of American jobs.  The Louisiana Department of Economic Development (LED) estimates that 10,000 jobs could be lost this summer in Louisiana as a result of the Administration's six month moratorium and job losses could reach 20,000 in the next 12-18 months if the moratorium remains in place.

Regional businesses and chambers of commerce continue to call on the Administration to reconsider the moratorium.  At a recent meeting of regional chambers and other industry groups in Baton Rouge, Dan Juneau, President of the Louisiana Association of Business and Industry, spoke to a TV reporter about the effects that the blanket moratorium is having on the region’s ability to grow, keep Americans working, and compete.

We will continue to urge the Administration to lift this moratorium while redoubling safety efforts.  Enabling safe and responsible exploration and production in the Gulf will ensure that our nation has the American energy, jobs, and growth needed to rebuild the Gulf region and ensure a competitive 21st century economy.

Read stories about Gulf workers affected by the moratorium.  Read more about the U.S. Chamber’s ongoing oil response activities. 

G-8, G-20 Declarations Show Continue Divide on Energy and Climate Change

by Steve Eule

Climate change and energy were featured in the statements of the G8, G8+G5, and G20 declarations coming out of Canada over the weekend, and once again their treatment of these issues demonstrates the large divide between developed and developing countries. Our pre-Copenhagen report (PDF) highlighted some of the divisions evident in the leaders’ declarations from d’Aquila, Italy last year, and the passage of time hasn’t lessened them any.

Like last year, the G8 leaders support a goal of a 50% reduction in global greenhouse gas emissions by 2050—80% for developed countries—to avoid a 2°C increase in temperatures. And like last year, these targets were missing from declarations signed off by the leaders of the emerging economies. A global emissions reduction of this magnitude implies eventual emissions reductions on the part of developing countries like China, a position there aren’t prepared to accept yet, either in the G20 or the UN Frame Convention on Climate Change.

The G8 statement also strikes many of the same themes that previous G8 statements have struck, and we hope to see some follow-through. The G8 leaders emphasis on energy security—an issue that remains a high priority for business and consumers—and the indispensible role of new technologies in meeting the challenges of providing reliable and abundant energy and reducing greenhouse gas emissions is welcome. It’s encouraging that the leaders recognized the importance of nuclear energy in the future energy mix, both the improve energy security and reduce global greenhouse gas emissions. It’s hard to see our energy security can be improved or emissions reduced without a clear role for nuclear power.

We’re also pleased to see a commitment to eliminating tariff and non-tariff barriers to clean energy goods and services. At a time when many national legislatures, including our own, are threatening what amounts to carbon tariffs, we would be much better off focusing our efforts on lowering tariff barriers, not raising them, as a way to accelerate global commerce in clean energy.