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What Did the 2010 Deepwater Horizon Oil Spill and Offshore Drilling Moratorium Mean for the Workforce?

By Joseph E. Aldy - Common Resources, August 22, 2014

On April 20, 2010, the Transocean Deepwater Horizon suffered a catastrophic blowout while drilling in a BP lease in the Gulf of Mexico’s Macondo Prospect. This accident resulted in the largest oil spill in US history and an unprecedented spill response effort. Due to the ongoing spill and concerns about the safety of offshore oil drilling, the US Department of the Interior suspended offshore deep water oil and gas drilling operations on May 27, 2010, in what became known as the offshore drilling moratorium. The media portrayed the impacts of these events on local employment, with images of closed fisheries, idle rigs, as well as boats skimming oil and workers cleaning oiled beaches.

In a new RFF discussion paper, “The Labor Market Impacts of the 2010 Deepwater Horizon Oil Spill and Offshore Drilling Moratorium,” I estimate and examine the net impact of the oil spill, the drilling moratorium, and spill response on employment and wages in the Gulf Coast. The spill and moratorium represented unexpected events in the region, and the resulting economic impacts varied within and among the Gulf states. Coastal counties and parishes were expected to bear the vast majority of the burden of these two events, while inland areas were expected to be largely unaffected. The moratorium was expected to affect Louisiana—with significant support of the offshore drilling industry—but not, for example, Florida, which had no active drilling off of its coastline. Beyond the economic impacts, the timing and magnitude of the spill response varied across the states over the course of the spill as well.

Despite predictions of major job losses in Louisiana resulting from these events, I find that the most oil-intensive parishes in Louisiana experienced a net increase in employment and wages. In contrast, Gulf Coast Florida counties south of the Panhandle experienced a decline in employment. Analysis of the number of business establishments, worker migration, accommodations industry employment and wages, sales tax data, and commercial air arrivals likewise show positive economic activity impacts in the oil-intensive coastal parishes of Louisiana and reduced economic activity along the non-Panhandle Florida Gulf Coast. The billions of dollars of spill response and clean-up mobilized over the course of the spring and summer of 2010 positively impacted economic activity, similar to the effect of fiscal stimulus. The geographic variation in labor market impacts reflects the focus of spill response efforts in Louisiana and the absence of oil and thus spill response along the Gulf coast of Florida south of the Panhandle.

Read the report (PDF).

Four Years After the BP Disaster, Vietnamese Oyster Fishermen and Shrimpers Struggle to Survive

By Cherri Foytlin - The Life Support Project, October 6, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

Undeterred by the blazing sun and high humidity of a mid-August afternoon in Biloxi, Mississippi, Tuat Nguyen and Bien Do moved nimbly around their shrimp boat, making last-minute preparations to leave for Lake Borgne, where the Louisiana shrimp season would open in a few days. Watching them work, moving with ease from one end of the boat to the other, climbing up and down, it was hard to believe both are in their seventies and each has been making a living on the water for more than six decades.

While Bien made final preparations to depart– they’d already had mechanical problems earlier that day – Tuat, who speaks only a little English, invited community leader and interpreter Thao Vu and myself to sit down for a few minutes at the small table in the boat’s tidy galley.

Tuat says her father taught her how to shrimp when she was only 8 or 9 years old. The invention of GPS and modern technology were still decades away, so at night the moon and the stars were their guide. She remembers following the sun during the day, following it as it moved from east to west. Everything was done by hand. Someone would blow a horn to guide them into the dock after dark.

She says her husband, Bien, can’t remember a time he didn’t work on a boat. He’s a hardworking oyster fisherman and a shrimper, livelihoods that go back generations.

After leaving Vietnam, they settled in Biloxi, drawn by the warm Gulf waters where they could make a living dredging for oysters and shrimping. The Gulf’s abundance and their own hard work allowed them to be productive, independent and part of a thriving community.

But that was before BP.

Dispersant illness robbing a once strong local generation of work, economic security

By Charles Digges - Bellona, September 4, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

NEW ORLEANS/BAYOU LABATRA, Alabama – Lamont Moore’s short dreadlocks and mammoth fists make a shot glass of his coffee mug in the well of his knot-knuckled hand as he leans back to ponder a question, shying vampirically from the light bellowing into the Waffle House on Alabama State Road 39.

Adjusting his Terminator shades with his other meaty mitt, he radiates the impression of a retired prizefighter tired of talking to the media.

But Moore, 34, is fatigued for other reasons. He can’t climb a flight of stairs without having to sit down and catch his wind. He pinches the bridge of his nose against the swirling hurricane of a debilitating migraine. He’s chosen not to join the rest of us in breakfast because of stomach pain. And he can’t read the menu anyway – the sunlight is too much for his eyes.

lamar

Lamar Moore, who cleaned beaches in Alabama during the Deepwater Horizon spill. (Charles Digges/Bellona)

Even the sunglasses that he fashioned out of welder’s goggles don’t help. Most of the time, he says, he bumbling around in a whiteout.

He finally breaks the silence, rubbing a cyst the size of cherry on his jaw that’s been there since he worked the beaches of Dauphin Island, Alabama to help cleanup the oil of the Deepwater Horizon spill. “I’m really sorry, but what did you ask?”

The memory loss is part of the overall symptomology of Corexit poisoning, or “BP syndrome,” as it’s sometimes referred to by Dr. Michael Robichaux, one of the few Gulf area physicians to treat and document the symptoms of poisoning by crude and Corexit, the oil dispersant that BP dumped 1.84 million gallons of to hide the effects of its 4.9 million barrel blowout in the Gulf of Mexico’s Macondo well.

The Fine Print I:

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The Fine Print II:

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