Obama Administration Underestimates Moratorium Job Loss By As Much As 60 Percent
LSU professor’s analysis reveals drilling ban will cost $5 billion in lost economic output based on White House’s own figures
WASHINGTON, D.C.—Using figures from last week’s report by the Obama administration on the economic impact of its drilling moratorium, Louisiana State University professor Joseph R. Mason ran an analysis with the government’s own economic modeling and reveals the White House underestimated total jobs loss by 7,500 to 11,500 jobs in the Gulf states. In fact, based on the administration’s calculations, Mason finds that that the region stands to lose:
- 19,536 jobs;
- $5 billion in economic output;
- $1.1 billion in earnings; and
- $239 million in state and local tax revenues during the 6-month moratorium.
“The heart of this critique is that the administration cut its estimates by a seemingly ad hoc 40 to 60 percent,” explained Mason. “The justifications given in its report are not supported by U.S. Bureau of Economic Analysis documentation. Without that methodologically unjustified cut, the Gulf starts with almost 20,000 jobs lost.”
“It’s no surprise the administration remains out of touch with the American public when it’s so far out of touch with basic facts like how many jobs will be destroyed by their own anti-growth, anti-energy policies,” said American Energy Alliance President Tom Pyle.
“The administration’s seemingly cavalier attitude in trying to whitewash the devastating fallout from its drilling ban exemplifies a recurring ‘disconnect’ seen between the White House and the economic reality of its misguided energy policies. This apparent disregard for the economic consequences of further burdening our energy sector can also be seen in the president’s proposal to levy additional taxes on the U.S. oil and natural gas sector – a move that would effectively kick the Gulf and national economy when its already down.”
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Founded in May, 2008, The American Energy Alliance (“AEA”) is a not-for-profit organization that engages in grassroots public policy advocacy and debate concerning energy and environmental policies. AEA is the advocacy arm of the Institute for Energy Research (IER), a not-for-profit organization – founded in 1989 – that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets.
