Mary Landrieu
(Photo by Kris Connor/Getty Images)
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WASHINGTON – United States Senator Mary L. Landrieu, D-La., today joined other members of Louisiana’s congressional delegation in signing and delivering a letter to President Obama, explaining reasons why it is in the best interests of both the Gulf Coast and national economies to end the ongoing de facto moratorium on deepwater oil and gas drilling in the Gulf of Mexico.  In the letter, the delegation requests the opportunity to discuss with the president how energy production on the Outer Continental Shelf (OCS) can be effectively resumed to the benefit of all stakeholders.  The letter, which was delivered to the White House, reads in part as follows:

“Analysis provided by your Administration indicates that the economic impact of the moratorium led to nearly $2 billion in reduced industry spending and a loss of up to 12,000 jobs.  Studies commissioned by business and industry leaders independent of the government report even higher figures.  As we work to restore U.S. manufacturing jobs, offshore energy production can be a driver for national independence and innovation.  Instead, the current decision to limit OCS drilling has paralyzed an important domestic industry, cut thousands of jobs, and stifled economic investment and growth at a time when job creation is paramount.
“Most obviously, the decline in domestic oil production has contributed to higher gasoline prices for all Americans.  As prices increase, our economic recovery will continue to be inhibited.  It has been reported that one-fifth of the current price increase of oil is related to a weaker dollar.  Clearly, increased domestic oil production mitigates this effect and should be supported by your administration.”
The administration imposed the moratorium following the April 2010 blowout at the Deepwater Horizon drilling platform, resulting in the spill of an estimated five million barrels of oil into the Gulf over a period of 85 days.  The administration declared an end to the moratorium on October 12, but since then not a single new deepwater drilling permit has been issued for the Gulf of Mexico.

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