Via Amanda Carey at the Daily Caller:
The first off-shore drilling company in the Gulf of Mexico to declare bankruptcy has blamed the government-imposed standstill for a shortage of shallow-water permits following the summer’s massive oil spill. Texas-based Seahawk Drilling, the second-largest shallow-water driller operating in the Gulf, announced it had filed for bankruptcy Friday and would be selling its remaining assets to Hercules Offshore.
According to the press release announcing the sale, the company’s liquidity and revenue stream “have been adversely affected by the dramatic slowdown in the issuing of shallow-water permits in the U.S. Gulf of Mexico following the Macondo well blowout.”
This can’t possibly be a surprise, even to this inept administration. You prevent an energy firm from drilling, their revenue stream dries up, they close their doors, and jobs are lost. And, as an added bonus, we’re forced to import even more oil than we already were, and prices keep rising. How is this good for America again? Even Democrat Senator Mary Landrieu has had enough:
“I have repeatedly said that the administration’s excruciatingly slow release of oil and gas permits will cause job losses,” Landrieu said in a statement. “How many more rigs have to leave and how many more businesses have to close before it realizes the havoc the de facto moratorium is wrecking on the Gulf Coast?”
Excellent question. Even if Obama suddenly comes to his senses (not likely) and lifts the suicidal moratorium, many rigs have already fled U.S. waters in search of more business friendly environments, taking their jobs with them. It’s doubtful they would suddenly come back anyway, given the tremendous uncertainty being generated by Obama’s ever-changing position:
The Obama Administration has had a back-and-forth position on offshore drilling. Earlier this month, a U.S. District Court judge ruled the administration acted in contempt by pursuing a moratorium after another judge previously struck it down. In March of 2010, President Obama expanded access to offshore drilling. That action was reversed in May after the oil rig explosion in the Gulf.
Back and forth is the understatement of the year. Only someone with no clue how businesses make decisions could possibly not see that this kind of uncertainty alone is enough for decision makers to sit on the sidelines. No business owner in his or her right mind would invest in capital or human resources when faced with such a murky tax and regulatory climate. In the meantime, Obama pontificates about solar shingles, windmills, and billion dollar bullet trains nobody wants (other than the public employee unions who will operate them, that is). And these taxpayer subsidized boondoggles will solve our energy problems and make up for all the jobs our president in short pants is destroying? I think not.
And neither does the above mentioned Democrat senator, who clearly isn’t buying this foolishness. Indeed this would all be laughable if it wasn’t so dangerous to the nation’s economy and national security. There is one potential candidate in 2012 who is perfectly positioned on this issue. Should she run, her common sense approach to our nation’s acute and growing energy needs will stand in stark contrast to Obama’s nonsense.