U. S. Oil Industry is Sinking

Moody’s Analytics has estimated the impact of the Gulf Oil Spill:

• 17000 jobs lost by year end, due to federal deepwater drilling moratorium. Houston-based Diamond Offshore announced, on July 9, that its Ocean Endeavor drilling rig will leave the Gulf of Mexico and move to Egyptian waters immediately. It has other rigs that may leave as well.

• $12 billion by year end

• The economic impact will be centered in Gulf region, however a secondary impact by increased unemployment

Unknown to most Americans is the fact that Interior Secretary, Ken Salazar, scrapped 77 oil lease parcels in Utah, shortly after taking office two years ago. He claimed that the leases were rushed by the previous administration and wanted an investigation.

Salazar’s inspector general evaluated the process and found nothing wrong with the auction of the leases. The report came out on December 28, 2009, but did not come to light until copy was sought under an open-records request by U.S. Rep. Rob Bishop.

Salazar offers no apologies, and will not reverse his actions, preferring to further wait while the department has a “fresh look” at the parcels, before deciding on whether or not to release them.

There is little doubt that this look will continue into perpetuity, sinking out of sight and mind, or, at least until there is a massive shift in government policy.