Tuesday, June 15
June 15, 2010Thursday, June 17
June 17, 2010
Long considered the hub for deepwater drilling operations in the Gulf of Mexico, Port Fourchon has grown and prospered based, in part, on its centralized location and the east access it provides to reach oil platforms located well off the coast.
However, the daily hustle and bustle could be brought to a screeching halt or, at least be significantly slowed, should a 6-month deepwater drilling moratorium issued by President Barack Obama remain in place for an extended period.
Rumblings of possible extensive employee layoffs by oilfield service and offshore support companies with operations at Port Fourchon are already making their way through the community.
“The situation could become dire if the moratorium continues for any significant length of time,” said Chett Chiasson, executive director of the Greater Lafourche Port Commission.
“All 33 rigs in the Gulf that would fall under the deepwater drilling moratorium are serviced out of Port Fourchon,” he explained. “In fact, 90 percent of deepwater activity in the Gulf is serviced out of Port Fourchon.”
According to Chiasson, several thousand people are employed by companies with operations at the port. He projects up to half those workers could be laid off if economic conditions get bad enough.
“We could possibly see some smaller tenants leaving the port, although that would likely fall under a worst-case scenario,” Chiasson said. “Smaller companies are more likely to feel the economic impact of an extended drilling moratorium, especially those who may not have the capital to weather a slowdown in work.”
Chiasson noted that commissioners and port commission staff are working with tenants daily in an effort to limit their exposure to the moratorium. “We are doing our best to assist port businesses during these times of uncertainty,” he said.
Lafourche Parish President Charlotte Randolph agreed that most locals are not convinced the Obama administration fully understands the economic impact a six-month shutdown of deepwater drilling.
“Nine of the top 10 taxpayers in Lafourche Parish are businesses involved in the oil and gas industry,” she said. “The economic hit the parish could take from an extended drilling shutdown is substantial. An economic downturn for these companies means fewer jobs and more layoffs, which, in turn, lead to less sales tax collections, which means less funding for schools, law enforcement and so on.”
A 2008 economic study of the port’s impact on the local and national economy indicates that some $63 billion worth of oil and natural gas was tied to the port and the platforms they service. In addition, some $351 million in household earnings can be traced back to employees and businesses based at the port, the study found.
“We could go on and on with the figures of how important a role this port plays not only to south Louisiana but to the rest of the nation as well,” Chiasson said. “We are trying every day to get the Obama administration to understand this importance, too.”
Chiasson said a group comprised of oil and gas-related businesses, offshore support companies and port representatives are planning a trip to Washington, D.C., to express the seriousness of the moratorium.
“We’re going to get our message out that this moratorium cannot stand,” Chiasson said.
A welder works on a platform in Port Fourchon. If President Barack Obama’s six-month moratorium on oil exploration is not lifted, port director Chett Chiasson fears the impact could be disasterous for area workers. * COURTESY PHOTO
