Louisiana

Moratorium Lifted, But Drilling Still Blocked

by Ben Lieberman on October 13, 2010

in Economy, Energy, Environment, Global Warming, Natural Resources

With much fanfare, the Obama administration has lifted its moratorium on deepwater drilling in the Gulf of Mexico. But don’t expect much actual drilling any time soon, thanks to all of the administration’s other red tape strangling domestic oil and natural gas production.

Even before the April 20th Deepwater Horizon spill, the Obama administration had clamped down on new leasing on federally controlled offshore and onshore areas. In fact, 2009 saw less oil and gas leasing than in any year under Bush or Clinton, and 2010 was on track to be no better.

Nonetheless, the Obama administration Department of the Interior used the spill as an excuse to crack down further by imposing a six-month moratorium, until November 30th, on issuing any new deepwater drilling permits in the Gulf of Mexico. For all practical purposes, the administration also put an end to nearly all shallow water drilling in the Gulf, as well as exploration activities off Alaska.

Studies estimating thousands of lost jobs as a consequence of the moratorium — not to mention strong bipartisan opposition from Louisiana’s Congressional delegation — made for bad politics as well as bad policy. Whether or not influenced by the upcoming elections, the Department of the Interior announced that the moratorium is being lifted more than a month ahead of time.

The moratorium is gone, but all the pre-spill hurdles are still in force. In addition, Secretary of the Interior Salazar announced several tough new provisions and stated that only those operators who “clear the higher bar can be allowed to resume.” Interior concedes that these new requirements “may delay development of some OCS oil and gas resources.” Additional delays piled onto a policy that had already ground drilling to a near halt is not good news for American energy production.

Notwithstanding the official end to the moratorium, the real test is whether and to what extent drilling activity resumes. The American people need more energy, not to mention the thousands of high paying jobs an expanded domestic oil and gas sector would bring. If 2010 goes into the books as the second year in a row of sharply curtailed domestic energy production, the new Congress should take a close look at reversing this worrisome trend.

Fraudulent Claims in Louisiana – I’m Shocked, Shocked!

by Fred Smith on October 5, 2010 · 1 comment

in Culture, Odds & Ends, Politics as Usual, Zeitgeist

Kenneth Feinberg, the individual dolling out the $20 billion BP Oil Spill “Settlement” (a No Pressure Voluntary thing), has been criticized for distributing funds too slowly.   Fighting back, Feinberg has noted that the delay has resulted from the flood of dubious claims pouring into his office (some 50,000 at last count).  Over 5,000 of these, he noted, have no documentation at all — another 25,000 claims have various deficiencies.  He is forwarding to the Department of Justice examples where he thinks fraud is an issue.

That Feinberg is surprised that such problems might arise in Louisiana — a state whose history demonstrates that they do not tolerate corruption — but rather insist upon it — is shocking, shocking!

New Federal Interference With Oil-Spill Clean-Up: Feds Stop Louisiana From Dredging Needed to Create Protective Sand Berms

by Hans Bader on June 23, 2010 · 2 comments

in Agriculture, Economy, Employment, Energy, Environment, Ethanol, Global Warming, International, Labor, Legal, Mobility, Natural Resources, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Stimulus to Nowhere, Trade, Zeitgeist

A TV station in New Orleans reports that “the federal government is shutting down the dredging that was being done to create protective sand berms in the Gulf of Mexico.”   Louisiana planned to create the sand berms to prevent the massive BP oil spill from polluting its coastline.

Earlier, a federal judge blocked Obama’s drilling ban on offshore drilling, citing deception by Obama administration officials.  The ban applied mostly to oil companies with radically better safety records than BP.  (BP’s executives gave lots of money to Obama and lobbied for his legislation.)

Obama delayed the clean-up of the Gulf of Mexico by blocking foreign crews from operating sophisticated clean-up vessels.  The Jones Act bans foreign vessels and crews from working in U.S. waters, but it gives the President the authority to completely waive that ban if he wishes.  Obama refused to lift the ban, even though American shippers who generally support the ban said they wouldn’t object to lifting it to fight the spill.  As a result of the ban, the U.S. rejected a lot of foreign aid from counties with expertise in fighting oil spills, and accepted only a small amount of foreign equipment to fight the spill.

The federal government has routinely been a thorn in the side of Louisiana as it seeks to fight the huge oil spill.  It recently used red tape to force Louisiana to stop using 16 barges that were cleaning up the Gulf of Mexico by sucking thousands of gallons of oil out of Louisiana’s oil-soaked waters.  Earlier, four oil skimmers needed to clean the Gulf were blocked by EPA officials.

The oil spill has been called “Obama’s Katrina,” but Gulf Coast resident Paul Rubin says this is unfair to George Bush, who was not nearly as incompetent as Obama has been in dealing with the spill at BP’s Deepwater Horizon.  In the Wall Street Journal, Rubin notes that the oil spill occurred in federal waters and thus was a federal responsibility, while Hurricane Katrina occurred mostly on state land and thus was largely a state, not federal, responsibility, enabling incompetent local officials in cities like New Orleans to “interfere” with federal relief efforts:

In many respects, the Deepwater Horizon disaster and Katrina are mirror images of each other. The harm from Katrina was on state land—mainly Louisiana, but also Florida, Alabama and Mississippi. As a result, President George W. Bush and the federal government were limited in what they could do. For example, Homeland Security Secretary Michael Chertoff wanted to take command of disaster relief on the day before landfall, but Louisiana Gov. Kathleen Blanco refused. Federal response was hindered because the law gave first authority to state and local authorities.  State and local efforts—particularly in New Orleans, and Louisiana more broadly—interfered with what actions the federal government could actually take. New Orleans Mayor Ray Nagin was late in ordering an evacuation and did not allow the use of school buses for evacuation, which could have saved hundreds of lives. President Bush had no power to change that decision.  The Deepwater Horizon oil spill is on federal offshore territory. The federal government has primary responsibility for handling the situation, while state and local governments remain limited in what they can do. For example, the Environmental Protection Agency has repeatedly changed its mind regarding the chemical dispersants that Louisiana is allowed to use. . . .As opposed to Katrina, state and local attempts to address the oil spill have been hindered by an ineffectual and chaotic federal response.

Obama is now using the BP oil spill to push a corporate-welfare-filled global-warming bill crafted partly by BP’s lobbyists.  Obama’s global warming legislation expands ethanol subsidies, which cause famine, starvation, and food riots in poor countries by shrinking the food supply, and also result in deforestation, soil erosion, and water pollution. Subsidies for biofuels like ethanol are a big source of corporate welfare: “BP has lobbied for and profited from subsidies for biofuels . . . that cannot break even without government support.”

The $800 billion stimulus package is using taxpayer subsidies to replace U.S. jobs with foreign green jobs. It is also destroying jobs in America’s export sector.

Obama Administration Blocks Clean-Up of Oil Spill by Louisiana and Foreign Allies By Imposing Red Tape

by Hans Bader on June 18, 2010 · 5 comments

in Agriculture, Economy, Energy, Environment, Ethanol, Global Warming, Health and Illness, International, Labor, Legal, Natural Resources, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Trade, Zeitgeist

The Obama Administration recently used red tape to force Louisiana to stop using 16 barges that were cleaning up the Gulf of Mexico by sucking thousands of gallons of oil out of Louisiana’s oil-soaked waters.

Earlier, it delayed the clean-up of the Gulf of Mexico by months, by blocking foreign crews from operating sophisticated clean-up vessels.  The Jones Act bans foreign vessels and crews from working in U.S. waters, but it gives the president the authority to completely waive that ban if he wishes.  Obama refused to lift the ban, even though American shippers who generally support the ban said they wouldn’t object to lifting it to fight the spill.  As a result of the ban, the U.S. has rejected a lot of foreign aid from counties with expertise in fighting oil spills, and accepted only a small amount of foreign equipment to fight the spill.

Even Democrats are now criticizing the Obama administration for refusing to waive the ban to allow America’s allies to clean up the oil spill:

“Rep. Corrine Brown (D-Fla.) said it was unacceptable that her state couldn’t utilize foreign vessels for skimming. She held up pictures of skimmers available in Mexico and Norway that could help.  ‘We are in emergency mode and we need skimmers,’ Brown said. ‘We need the big ones. I understand they’re available in other countries, including Mexico and Norway. What is the process for the state to utilize these vessels from other countries? … We’re talking about protecting Florida’s coast.’ . . .Deputy Maritime Administrator David Matsuda confirmed there has been one Jones Act waiver request for a foreign deck barge to operate within three miles of the U.S. coast. That request was denied . . . .Of course, the Obama administration could eliminate the bureaucratic delay entirely by simply following the precedent set by the Bush administration, which waived the Jones Act in the aftermath of Hurricanes Katrina and Rita in 2005 to transport oil and gasoline throughout the Gulf region. Homeland Security Secretary Janet Napolitano has the legal authority to suspend the law.”

“The BP clean-up effort in the Gulf of Mexico is hampered by the Jones Act. This is a piece of 1920s protectionist legislation, that requires all vessels working in U.S. waters to be American-built, and American-crewed. So” the U.S. Coast Guard ”can’t accept, and therefore don’t ask for, the assistance of high-tech European vessels specifically designed for the task in hand.”

The law itself permits the president to waive these requirements, and such waivers were “granted, promptly, by the Bush administration,” in the aftermath of hurricanes and other emergencies. But Obama refused to do so after the spill, notes David Warren in the Ottawa Citizen.  Instead, Obama rejected a Dutch offer to help clean up the spill, noted Voice of America News:

“The Obama administration declined the Dutch offer partly because of the Jones Act, which restricts foreign ships from certain activities in U.S. waters.  During the Hurricane Katrina crisis five years ago, the Bush administration waived the Jones Act in order to facilitate some foreign assistance, but such a waiver was not given in this case.”

“After the Obama administration refused help from the Netherlands, Geert Visser, the consul general for the Netherlands in Houston, told Loren Steffy: ‘Let’s forget about politics; let’s get it done.’” But for Obama, politics always comes first: “The explanation of Obama’s reluctance to seek this remedy is his cozy relationship with labor unions. . . ‘The unions see it [not waiving the act] as … protecting jobs. They hate when the Jones Act gets waived.’”

(The Obama Administration belatedly accepted some foreign equipment for use in fighting the spill, although it still blocked ships with foreign crews from working in U.S. waters.  As Voice of America notes, although ”the Netherlands offered help in April,” such as providing ”sophisticated” oil “skimmers and dredging devices,” the Obama Administration blocked their crews from working in U.S. waters, and as a result, this crucial ”operation was delayed until U.S. crews could be trained” in June.  “The Dutch also offered assistance with building sand berms (barriers) along the coast of Louisiana to protect sensitive marshlands, but that offer was also rejected, even though Louisiana Governor Bobby Jindal had been requesting such protective barriers.”)

In April 2009, the Obama administration granted BP, a big supporter of Obama, a waiver of environmental regulations.  But after the oil spill, it blocked Louisiana from protecting its coastline against the oil spill by delaying rather than expediting regulatory approval of essential protective measures.  It has also chosen not to use what has been described as “the most effective method” of fighting the spill, a method successfully used in other oil spills.  Democratic strategist James Carville called Obama’s handling of the oil spill “lackadaisical” and “unbelievable” in its “stupidity.”

Obama is now using BP’s oil spill to push the global-warming legislation that BP had lobbied for.  Obama’s global-warming legislation expands ethanol subsidies, which cause famine, starvation, and food riots in poor countries by shrinking the food supply.  Ethanol makes gasoline costlier and dirtier, increases ozone pollution, and increases the death toll from smog and air pollution.   Ethanol production also results in deforestation, soil erosion, and water pollution. Subsidies for biofuels like ethanol are a big source of corporate welfare: “BP has lobbied for and profited from subsidies for biofuels . . . that cannot break even without government support.”

BP Supported Obama Stimulus Package, Global Warming Bill, and Corporate Welfare; BP Bankrolled Obama Campaign

by Hans Bader on June 9, 2010

in Agriculture, Bailout Watch, Deregulate to Stimulate, Economy, Employment, Energy, Environment, Ethanol, Global Warming, Health and Illness, International, Natural Resources, Politics as Usual, Precaution & Risk, Regulation, Sanctimony, Stimulus to Nowhere, Trade, Zeitgeist

Columnist Tim Carney notes that BP, responsible for the massive oil spill, is “a close friend of big government whenever it serves the company’s bottom line.” It lobbied for President Obama’s $800 billion stimulus package, the “cap-and-trade” global-warming bills backed by Obama, and “the Wall Street bailout” that Obama voted for.  “BP has more Democratic lobbyists than Republicans.”  Obama is the biggest recipient of campaign cash from BP executives.

Obama’s global warming legislation expands ethanol subsidies, which cause famine, starvation, and food riots in poor countries by shrinking the food supply, and also result in deforestation, soil erosion, and water pollution. Subsidies for biofuels like ethanol are a big source of corporate welfare: “BP has lobbied for and profited from subsidies for biofuels . . . that cannot break even without government support.”

The $800 billion stimulus package is using taxpayer subsidies to replace U.S. jobs with foreign green jobs. It is also destroying jobs in America’s export sector.

Obama falsely claimed that the stimulus package was needed to prevent “irreversible decline,” but the Congressional Budget Office admitted that it would actually shrink the economy “in the long run.”  Unemployment has skyrocketed past European levels, as big-spending countries have fared worse than thrifty ones.  As the Examiner notes, “If his stimulus program was approved, Obama promised, unemployment would not go above 8 percent . . . The reality is that it passed 10.3 percent.”  In 2008, Obama promised a “net spending cut,” but as soon as he was elected, he proposed massive spending increases.

Obama’s global warming legislation would also drive jobs overseas, since it would impose a costly cap-and-trade carbon rationing scheme on American industry, while leaving foreign plants operated by multinational corporations unregulated.  That’s one reason why many big companies with plants overseas are lobbying for the global-warming legislation, which would give them an advantage over competitors that make their products largely in America.  The legislation would result in a tax increase for American consumers of up to $200 billion a year or $1,761 per household.

Unlike other oil companies, which have good records of safety and avoiding spills when it comes to oil drilling, BP has a bad record, earning it the label of “serial environmental criminal” from critics.  The Obama administration granted BP a waiver of environmental regulations in April 2009, yet it blocked Louisiana from protecting its coastline against the oil spill by delaying rather than expediting regulatory approval of essential protective measures.  It has also chosen not to use what has been described as “the most effective method” of fighting the spill, a method successfully used in other oil spills.  Democratic strategist James Carville called Obama’s handling of the oil spill “lackadaisical” and “unbelievable” in its “stupidity.”

Obama is now using BP’s oil spill to push the global-warming legislation that BP had lobbied for.

Louisiana auto insurance at a crossroads

by Michelle Minton on December 31, 2009

in Insurance

Louisiana drivers pay the third highest expenditures for auto insurance in the country (with N.J. taking second and D.C. taking the top honor). On average, consumers pay $1,096 a year for their insurance. This Friday it will get even more expensive as the new minimum coverage mandate is adjusted. The reason for the increase, among other things is due to the rising costs for medical care and accidents.

While the actual amount of increase is likely to be minimal (an additional $71 per year per policy according to the chief actuary for LA’s dept. ) the unintended consequence (as noted in the NYT article) could be the reduction in auto coverage state-wide not an increase. The folks who couldn’t afford more insurance before the mandate still won’t be able to afford it and instead of pinching pennies somewhere else in their budget they may choose to drop coverage all-together increasing the deficit of coverage in Louisiana–not increasing coverage.

Oyster Ban Update: Partial Victory!

by Ryan Young on November 17, 2009 · 1 comment

in Deregulate to Stimulate, Economy, Health and Illness, Nanny State, Personal Liberty, Politics as Usual, Precaution & Risk, Regulation

Remember the raw oyster ban from a recent Regulation of the Day? I am happy to report a partial victory (hat tip to Jacob Grier).

The ban, due to take effect in 2011, has not been repealed outright. But, in response to public outcry, it has been delayed:

The FDA announced it would commission a study to explore alternatives to reducing the illness vibrio vulnificus, and also do an economic analysis of how the ban would impact the oyster industry.

“Before proceeding, we will conduct an independent study to assess how post-harvest processing or other equivalent controls can be feasibly implemented in the Gulf Coast in the fastest, safest and most economical way,” according to an FDA news release.

Regulation of the Day 67: Oysters

by Ryan Young on October 28, 2009

in Deregulate to Stimulate, Economy, Health and Illness, Nanny State, Personal Liberty, Regulation, Regulation of the Day

My colleague Richard Morrison brought to my attention a new FDA rule that requires oysters harvested between April and October to be sterilized before they are eaten. The goal is to prevent a rare – and sometimes fatal – bacteria from harming anyone.

An unintended consequence is that the state of Louisiana is up in arms. The sterilization rule essentially bans raw oysters, a local delicacy, for seven months every year. Sterilization also affects the flavor of cooked oysters, a common ingredient in Cajun cooking.

Restaurateurs are livid. One describes the rule as “ludicrous.”Another calls it “a nuclear bomb” for the oyster industry. State officials are also upset, and have issued strongly worded statements opposing the rule.

Citizen Showing Gadsden flag ‘Stopped and Detained’ by Louisiana Police

by Christine Hall on May 8, 2009 · 2 comments

in Bureaucrash, CEI Projects, Features, Legal, Nanny State, Personal Liberty

Louisiana police stopped and detained an American citizen for displaying the historic Gadsden “Don’t Tread on Me” flag on his car, World Net Daily reports. The flag has a treasured history in America – named after an American general and statesman, Christopher Gadsden, and was once used by The United States Marine Corps as a motto flag. In any case, political talk show icon G. Gordon Liddy was incensed by the reported incident and is now encouraging patriotic and First Amendment loyalists to go buy a Gadsden flag sticker and put it you-know-where — on your bumper sticker. Just so happens, the Bureaucrash activist group is offering the sticker — along with other politically incorrect, First Amendment-loving t-shirts, stickers, pins and other “contraband.” Visit Bureaucrash.com and click on “contraband” to get your Gadsden flag on.

Edit: Link to the G Gordon Liddy Show podcast, hour 1.

LibertyWeek 20: The Future Is Cao?

by Richard Morrison on December 9, 2008 · 1 comment

in CEI Projects, Podcast

Welcome back to LibertyWeek, where your hosts Richard Morrison and Cord Blomquist bring you the best in news and views, always from the perspective of free markets and limited government. We start this week’s episode with praise for the new look and feel of OpenMarket.org: the blog you want to read. We then move on to the most delicious edition of Scandal Watch yet — the arrest of Illinois Gov. Rod Blagojevich on federal charges of “staggering” corruption. After that we look at the demise of Rep. William “Freezer Cash” Jefferson, the rise of Rep.-Elect Anh “Joseph” Cao (pictured, right), investigations into the mortgage mess, how taxpayers get trashed by recycling mandates and a debate over the ethics of scalping tickets in Olympic News.

# Special thanks to Josh Barro for the Tweet of the Week.