Last week, I attended the annual meeting of the National Lieutenant Governor's Association in Biloxi, Mississippi. The theme of our meeting was Recovery and Renewal, and we focused on how the Gulf Coast has responded to and recovered from Hurricane Katrina in 2005 and the recent Deep Water Horizon oil leak.
In this column I will talk about the Deep Water Horizon oil leak. I will talk about the lingering impacts of Hurricane Katrina in a later column.
As far as the Deep Water Horizon oil leak is concerned, the best assessment of this situation came from Mississippi Governor Hailey Barbour, who talked with us about the physical and fiscal impacts of the leak.
From the physical perspective, I saw very little evidence of the leak. The vast majority of the oil that came from the Deep Water Horizon well was dispersed, captured or burned off shore. While some oil did come ashore in the form of "tar balls" or "sludge", the impacts appear to have been minimal and were not widespread.
I should note that the impacts were greater in Louisiana, where some marsh lands were impacted, and this is the greater concern about the oils long term impact. However, officials we spoke with in both Mississippi and Louisiana confirmed that the physical impacts of the oil leak had been overstated by the national media.
From watching the nightly news you get the impression that the entire Gulf Coast has been covered in oil. That is certainly not the case. We drove along the entire Mississippi Gulf Coast from Biloxi to Bay St. Louis and we saw no evidence of oil. The beaches were open and the water was clear.
While many BP cleanup workers were present, they were generally huddled together under tents trying to stay cool with no real work to be done.
However, from a fiscal standpoint the oil leak has had a devastating impact on the Gulf Coast.
Commercial fisheries in Louisiana and Mississippi were closed for a lengthy period of time (although they are now reopened); and tourism is off by about 40%, which is making it difficult for many hotels, restaurants, and other tourist locations to keep their doors open.
It appears as though a lot of this fiscal impact, especially that relating to tourism, has come about because the national media did not do a balanced job reporting the impacts of the oil leak on the Gulf Coast. Unfortunately, I don't think that will surprise many people.
At present, the major concern over the fiscal impact of the oil leak has nothing to do with the leak itself. It has to do with the misguided decision of the Obama administration to impose a moratorium on the development of additional oil wells in the Gulf of Mexico.
During our meeting we heard from the Lieutenant Governor Scott Angelle (D-Louisiana), who made an impassioned plea for the administration to lift this moratorium because of the fiscal impact it is having on the Gulf Coast.
Not only are people suffering from the loss of jobs associated with the moratorium, but many major oil drilling rigs are being located to other countries and they may never return. This may make it difficult for the Gulf Coast to resume new oil well production for a very long time.
I came away from this trip with two distinct impressions.
First, BP is certainly at fault for the spill and they should be held accountable for the cleanup and reimbursement of all valid losses that families and businesses have sustained.
Second, the national media, through misleading media coverage; and the Obama administration, through misguided policies, have contributed greatly to the fiscal impacts of this disaster on the Gulf Coast.
This begs the question - what can we do to help the Gulf Coast recover from this event. I have two recommendations.
First, if you are considering a vacation this summer or fall consider a trip to the Gulf Coast. They have some wonderful beaches, resorts and other entertainment venues and I know they would be glad to have your business.
Second, let's join together to encourage the Obama administration to lift the misguided moratorium they have imposed on additional off shore drilling. We need to get the oil industry back to work before it is too late.
In my next column I'll talk about the lingering impacts of Hurricane Katrina on the Gulf Coast.
