SLEC chief: It’s time to let us get back to work

Dear Editor,

It has been a difficult year to run a small business in Louisiana. Companies from the Bayou Region have been forced to lay off employees and have gone from a period of expansion to one of economy-crippling contraction. The economic impact of restrictions on the drilling industry is far-reaching and affects companies ranging from hotels to restaurants to equipment suppliers.

Business was strong in the Bayou Region during the early part of 2010. I was seeing companies growing and hiring new employees each month. But then in April, following the Deepwater Horizon accident, the moratorium was placed on offshore drilling, putting thousands of Louisianans out of work.

When the moratorium was finally lifted late this year, business came back at a rate mirroring the federal government’s painfully slow permitting process. Then, just last month, the Obama administration proposed extending the review time for offshore drilling permits from 30 days to 90 days, adding even more uncertainty to doing business offshore.

Already we have seen oil rigs exit the Gulf for places such as Brazil and Egypt. These rigs are taking advantage of business environments that encourage offshore drilling.

Each rig that leaves the Gulf takes American jobs and economic growth with it. Until the federal government creates a climate of confidence for businesses and offshore drilling, we are going to continue to see oil rigs leave the Gulf for international waters. That is tough news for the businesses of our region that depend on active rigs to bring in work.

Our state is resilient. We are not asking for a handout but only the opportunity to get back to work. Rather than support our state in that endeavor, the Obama administration and leaders in Washington, D.C., are holding us back. At a time when Louisiana’s unemployment rate is 8.2 percent and the national unemployment rate is at nearly 10 percent, our leaders should be looking for ways to enable people to get back to work, instead of creating policies that force them to the unemployment line.

Offshore drilling in Louisiana has been an important part of our state’s economy for nearly a century – it’s an integral part of our livelihood. Everything that can be done should be done to ensure that offshore drilling is done safely off our coasts. We certainly understand that, but we’re seeing firsthand that instead of ensuring safe exploration, bureaucratic red tape and arbitrary restrictions just create a more uncertain climate for investment.

While I may be discouraged about the short-term prospects for growth in our local economy, and the future of offshore drilling in our state might be on the ropes – I’m not giving up the fight. With the right policies, Louisiana can continue to thrive and provide the jobs and energy that our nation needs to grow our economy. Let’s get Louisiana back to work.

Vic Lafont,

President/CEO,

South La. Economic Council