Moratorium on Deep Water Drilling Lifted

Looking at the actual economic impact of the ban on Gulf states

Wednesday, October 13, 2010

Rig, Offshore, Oil An offshore oil rig located off the coast of California (Flickr: arbyreed)

Deep water drilling can resume in the Gulf of Mexico; the federal government lifted its moratorium on deepwater drilling yesterday.

What was the actual economic impact of the nearly four month moratorium? Gregg Gothreaux, president and CEO of the Lafayette Economic Development Authority was very worried about how the pause in oil and gas drilling would affect Gulf states, whose local economies depend heavily on the rigs. Now that the ban has been lifted, Gothreaux says the pause didn't hurt the states as badly as he had predicted. While he is grateful the ban is over, he fears some aftereffects, including a slow-down in permit applications for new drill rigs, will last longer.

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