Gulf Economic Survival Team

Get us back to work fueling America!

Facts & Figures

Impacts of President Obama's Order Halting Work on 33 Exploratory Wells in the Deepwater Gulf of Mexico
From the Louisiana Mid-Continent Oil & Gas Association / May 28, 2010

 

  • Roughly 33% of this nation's domestically produced oil comes from the Gulf of Mexico, and 10% of the nation's natural gas.
     
  • Eighty percent of the Gulf's oil and 45 percent of its natural gas comes from operations in more than 1,000 feet of water - the deepwater (2009 data).
     
  • Suspension of operations means roughly 33 floating drilling rigs - typically leased for hundreds of thousands of dollars per day - will be idled for six months or longer. $250,000 to $500,000 per day, per rig - results in roughly $8,250,000 to $16,500,00 per day in costs for idle rigs.
     
  • Secondary impacts include:
    • Supply boats: 2 boats per rig with day rates of $15,000/day per boat - $30,000/day for 33 rigs = nearly $1 million/day
    • Other suppliers and related support services like welders, divers, caterers and transporters will also be affected.

     
  • Each drilling rig platform averages 90 - 140 employees at any one time (2 shifts per day), and 180-280 employees for 2 2-week shifts.
     
  • Idle drilling rigs in the Gulf could be contracted overseas for work in other locations, and if/when the moratorium is lifted, rigs will not be available for completing work in the Gulf.
     
  • A six-month halt in new drilling would defer 80,000 barrels/day, or 4 percent of 2011 deepwater Gulf of Mexico production (Wood MacKenzie)
     
  • The moratorium could lead to a decrease in the availability of domestic oil, and it is hard to tell how commodity speculators are going to respond over the next six months. There is the possibility for driving oil prices to levels well over $100 per barrel.
     
  • A loss of tolls collected on LA Highway 1 to Port Fouchon due to a loss of traffic related to deepwater operations may result in the State of Louisiana having to pay to retire debt for highway improvements. This will result in a loss of funding for other projects in the state's budget.
     

Laying Pipeline

Port Fourchon Water Tower

Louisiana coastal port activity

Louisiana shipyard workers

Readying pipeline