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The BS About Loss Of Oil Industry Jobs

by: Bill Egnor AKA Something The Dog Said

Fri Jun 04, 2010 at 06:31:29 AM MST


There is a meme that I am starting to hear from the Republicans and the Democrats that have become wholly owned subsidiaries of the oil industry. It is the idea that there will be massive job losses from the suspension of deep water drilling in the Gulf and elsewhere. Rule one in any Republicans play book; keep the issue isolated so you never see the big picture. This is because any time you look at Republican policies in the larger context they fall completely apart.

There are about 1.3 million jobs in oil production in the United States. Roughly 25% of them are in Louisiana. This is due in large part to the very friendly environment to oil development that exists in the state. Depending on what study you look at the Bayou State is either the 3rd or 1st most corrupt state in the nation. Its corruption is not a partisan thing; it is an equal opportunity corrupt state with the likes "Dollar" Bill Jefferson and Sen. David Vitter. Can there be any doubt that large amounts of oil industry money have been part of this corruption.  

Bill Egnor AKA Something The Dog Said :: The BS About Loss Of Oil Industry Jobs

Corruption is not always completely bad for the people of a state. Being able to buy the legislature in Baton Rouge has brought a lot of jobs to the state. The problem is, of course, the perspective. As long as we just look at one industry it looks like a pretty good deal. When we pull back and look at the state in general there is real problem.

There are twice as many jobs in fishing and tourism in LA as there are in oil production. As long as the oil industry did not have a major catastrophe then there was no conflict. Now that we have seen that BP really had no idea how to handle a disaster of this magnitude (their sworn statements on the applications to the contrary, but we'll get to that can of worms in another post)  it is clear they are not really a net benefit to jobs.

The cost of oil has always been viewed in terms of the cost of developing and refining. We as a nation use a rough metric of the cost of a gallon of gas to determine if the cost of drilling is too high. This is a false measure. It is easy for people to understand but there are so many variables that are not included it really does not reflex the true cost of oil.

Starting this summer the primary U.S. fishery, a place where we get 40% of all of our sea food, will be closed to fishing. Oil is toxic and carcinogenic, you do not want to eat seafood that has been contaminated with it. The cost of seafood is going to rise sharply and will stay high for a very long time. When oil is "weathered" it is eaten by bacteria. This helps the oil disappear, but it puts the toxins and carcinogens into the food chain. Given the potential size of this spill it may be a very long time before seafood from the Gulf is really safe to eat.

The long term costs of this spill will also include the affects of hurricanes. While we all hope that there will not be too many major storms that wash the tar balls inland, the real hurricane worries are in the future. The marshlands which blunt the force of hurricanes as they come inland are going to be devastated by the oil this year. This will make it easier for them to be reclaimed by the sea over the next few years. Sometime around 2015 the real trouble will start; hurricanes will be able hit the coastal cities without being undercut by the millions of acres of marsh that does this job today.

Hurricane Rita was a Category 3 storm when it made landfall. It caused 11.3 billion in monetary damages and killed at least 107 people. Without the marshlands the damage and cost would have been much higher as the energy of the storm would not have been blunted. Sadly we will get the chance to test whether the destruction of marshlands will mean more destruction on land.

All this leads back the penny-wise and pound-foolish thinking of Republicans and bought Democrats (Sen. Landrieu I am looking right at you!) when it comes to talk of lost jobs. There will be lost jobs if we stop deepwater drilling in the Gulf. That is a fact. There are other facts though. Right now we are staring down a loss of as many as 1 million jobs lost between commercial fishing, sport fishing, recreational water uses and all of the people who owe their living to the Gulf directly or indirectly.

The whole concept that we should protect the jobs of an industry that is risking the jobs three times the number of jobs in other industries is completely insane. It is clear that BP and the other oil companies have lied to the Federal Government when they said that they could handle a spill 10 times the current size of Deepwater Horizon with "minimal impact" to fishing and the shore. With this lie exposed there can be no reasonable assertion of safety. We can not take the risk that other companies will not make the same kinds of mistakes that BP made.

While they might not remove the drilling mud too soon, as BP clearly did, there are other problems that have to addressed. There is no standard for Blow Out Preventers. There is no set of standards that require it to be working (remember that the battery on the so-called fail safe deadmans switch was itself dead)  and there are not enough stringent inspections by a competent and uncorrupt agency to assure that standards are followed even if they were in place.

All this leaves us at the mercy of another disaster just like this one. The President and many others said drilling was high tech and safe. They said this because it was what they were told and there had not been a major disaster in our waters. It was a lie that has been exposed. We can not go back to the old days of thinking it is true. The jobs that deepwater drilling have created were also a lie. They were based on false statements and hope. They can not be preserved without the danger of another disaster like we are dealing with now.

When you look at long term cost to jobs, the environment and the health of the nation, these oil jobs cost far too much. While it might be a hardship for the people who will not work because of the banning of deepwater drilling, it is a net positive for the nation. We can find ways to re-deploy oil workers far easier than we can fishermen and those who work in the tourism industry.

It was the short sightedness of the Republicans and Democrats from BP that put us in the mess. We should not pay any attention to their squawks about losing jobs that should have never existed in the first place.

The floor is yours.

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Excellent diary
n/t

------------------------------
"Honestly, I think we should just trust our president in every decision that he makes and we should just support that." --- Britney Spears, September 2003


Losing Jobs in Oil & Gas Is a Standard Republican Meme
For example, Denver Business Journal noted that
But oil and gas executives have said the rules will drive their costs higher, in some cases by thousands of dollars per well. They've also predicted that investment dollars will be diverted to other states viewed as more favorable for energy operations when the economy recovers.

This sort of thing goes on, but very few leases are ever abandoned which is an indication that their owners see potential economic benefit from them.

How many have considered that loosening of safety and environmental rules for such activities are really public subsidies to an industry?   Would not an peak oil  rise in price of the resource be sufficient incentive to exploit it at some time in the future under safe conditions?


Far too few
There has been almost no discussion about what the public - you and me and all of our neighbors - is made to give away to industry.

Most of the costs and risks fall on us and we have only the tiniest of voices to influence decisions.  Most of the benefits and profits are gobbled up by industry - the same industry that screams when a tiny portion of their operations are affected by policies that spread the costs and risks back to them.

The recent environmental rules established for Colorado fossil fuel drilling are another prime example.  The industry talked a lot about the hundreds and thousands of lost jobs the rules would cause.  It never happened, but the meme was set.  The Republican Governor's Association already has a TV ad trying to tie Hickenlooper to Ritter as 'job killers' because of Ritter's environmental and energy policies.  Those policies have helped Colorado weather the Great Recession.  Without clean energy business and jobs coming to Colorado, how much worse would our economy be right now?


[ Parent ]
Fisherman Jobs and Tourism DOUBLE oilfield jobs?
Take a guess how those fisherman jobs came about?
From the oilmen and women buying seafood at restaurants!

And of course the tourism.......but hey, you take away drilling and oil from the Gulf, you'll see a lot more than just oil jobs disappearing.

So before you say anything else ignorant, you might think about the longer term results that can come from NO OIL activity in the Gulf region.

Oil is not the enemy, spills are however. Maybe in 20 years we can be unaddicted to oil, but let's do it gradually.

You can't shitcan an industry overnight without toppling the whole economy....something we don't need right now.


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