Jindal said he had a conference call with President Barack Obama's senior adviser, Valerie Jarrett, and appealed to her to shorten the six-month moratorium, arguing that a half-year pause would force oil companies to move drilling operations overseas for years and that the federal government could easily impose new safety standards and monitoring in a shorter time frame.Obama wants BP to pay for the impact of his own moratorium but it's not clear why they should or would pay for something he ordered. Can you imagine the precedent that this would cause if the government could order some action in response to an event and then just send the bill to the private company with the biggest pockets?
"She asked again why the rigs simply wouldn't come back after six months," Jindal said. "What worries me is I fear they think these rigs can just flip a switch on and off."
Obama wants to set up a government unemployment benefits program to reimburse all the people he's put out of work. Doesn't he realize that people just want to work - they don't want the government handouts? How has that government-induced unemployment been working out for the folks in California's Central Valley?
Already, companies are moving their drilling rigs out of the area to foreign countries where they can put them to work.
According to the official state drill count, 17 of the 22 deepwater drilling rigs in Louisiana waters pulled up their drills in the first week of the moratorium, which was announced by Obama and Interior Secretary Ken Salazar on May 28 and requires them to plug and abandon their wells at the first safe opportunity.As Bruce McQuain explains, these rigs are too expensive to let them sit idle waiting for the Obama administration to figure out what a mistake they've made with this moratorium.
Anardarko Petroleum Corp. has used a legal maneuver to break its contracts with rig owners and suppliers on three deepwater drilling rigs, meaning those rigs and supply fleets have been left to idle. The company has said it's considering putting its resources elsewhere in its global portfolio.
On Thursday, Shane Guidry of Harvey Gulf International Marine, the primary tug company responsible for moving the rigs, said he's been contacted by two other oil production companies -- which he wouldn't name because of his contractual obligations -- negotiating with him about moving three rigs to foreign waters.
"One company is talking to me about moving a rig to Nigeria, which I'm concerned about because of the unstable situation there, and another to Colombia," Guidry said. "Another of my customers is looking to move the rig to Israel."
Gross ignorance is all that [it] can be called. These rigs cost about $500,000 a day for oil companies. You do the math. Those owning the rigs probably wouldn’t mind sitting around, doing nothing and getting paid 90 million for each rig. But the oil companies are going to move them, while they have them under contract, to foreign leases they own in order to seek oil.And why should they have a clue? They've never run any business in the real world so they don't understand costs and unintended consequences? They figure that they can just send the bill to BP, but BP does not have a limitless budget and they're too busy paying for their own mess without having to pay for the one that Obama created all on his own.
Exploration rigs have always been at a premium (which is why their daily rate is so high), and they’re constantly working somewhere – as long as the price of oil supports such exploration. But since half a year is the apparent non-negotiable moratorium, those rigs are going to pull up stakes and move to foreign leases – leaving the oil untapped, and providing jobs elsewhere. We end up with higher unemployment and more dependent on foreign oil than ever.
And our leaders haven’t a clue.