2010 Archives

Drilling halt may be worse than oil spill -critics


The following is from the June 3, 2010, edition of Reuters news service. Bernard Weinstein, associate director of the Maguire Energy Institute in SMU's Cox School of Business, provided expertise for this story.

SMU Oil Spill Experts

oil on pelican
As the oil spill in the Gulf of Mexico worsens, SMU experts talk about the petroleum industry, economics and politics of the situation.
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June 4, 2010

By Eileen O'Grady and Bruce Nichols

HOUSTON, June 3 (Reuters) - A backlash is building against the Obama administration's offshore drilling moratorium, which some argue worsens the harm to a Gulf Coast economy already losing fishing and tourism business to the oil spill.

Louisiana politicians, including Sen. David Vitter and Governor Bobby Jindal, have sent letters to President Barack Obama urging reconsideration of the May 27 executive order.

"It's the wrong thing to do at the wrong time," said Chris John, a former member of Congress who is now president of the Louisiana Mid-Continent Oil and Gas Association.

"It may be good politics, but it is bad economics," said Bernard Weinstein, associate director of the Maguire Energy Institute at Southern Methodist University's Cox School of Business in Dallas. . . "In terms of capital expenditures and wages, offshore drilling has to have a bigger economic impact than fishing."

Read the full story.

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