Category Archives: Deepwater Horizon

Show your support for the RESTORE Act in our social media week of action

By | Bio | Published: February 15, 2012

From Mobile to Metairie, many are gearing up for the grand finale of this season’s Mardi Gras celebrations next Tuesday. Even if you can’t make it to the Gulf Coast for the scheduled balls and bayou bonfires, you can still participate in an event that could have a lasting impact on Louisiana and its neighboring states.

For our RESTORE Act social media week of action, we encourage you to join the parade of citizens who are pressing Congress to commit oil spill fines from the BP oil disaster to environmental and economic restoration of the Gulf Coast. People across the political spectrum support this approach, but without congressional action, Clean Water Act fines from the spill may not be dedicated to economic recovery, wetland rehabilitation, beach cleanup, and other restorative initiatives that would be supported by the RESTORE Act.

Here are several ways that you can participate:

ONE: Send an email to your senator, asking them to make the RESTORE Act a priority and dedicate BP’s oil spill fines to restoration.

TWO: Use Twitter to tell Senate Majority Leader Harry Reid (D-Nevada) and Senate Minority Leader Mitch McConnell (R-Kentucky) to pass the RESTORE Act.

Click to send this sample tweet: Speak up for the Gulf Coast! Tell @SenatorReid @McConnellPress to pass the #RESTOREAct NOW! #oilspill http://bit.ly/xYL6DW via @RestoreDelta

THREE: “Like” and “share” the Mississippi River Delta Restoration Campaign’s RESTORE Act Facebook image to make sure that Senate leadership knows that Americans want to see BP’s oil spill fines dedicated to Gulf restoration.

Please spread the word to your friends and contacts. We hope that by the time Mardi Gras rolls around next year, mechanisms will be in place to ensure that the damage from the spill and other recent environmental disasters is finally being resolved in the Gulf Coast.

Also posted in BP Oil Disaster, Congress, Events, Interactive Media, Oil Spill | Leave a comment

Unemployment Data Bolsters Case for Regional Restoration Jobs Bill

By | Bio | Published: September 28, 2011

Is there a deepening jobs crisis in the Deep South? Judging by a recent chart from The New York Times, the answer might be yes.

As part of a story about the increasingly regional nature of joblessness in the United States, the Times featured an infographic that illustrated how unemployment rates have varied across America over the past four years.

The cartographic snapshots, sourced with information from the Bureau of Labor Statistics and Moody’s Analytics, show the level of joblessness in each state in December 2007 (considered the “start” of the Great Recession by the business cycle monitoring committee at the National Bureau of Economic Research (NBER)), June 2009 (the “end” of the recession, as judged by NBER), and August 2011 (the most recent month of available data).

The data reveal that the southern United States, which had ridden out the early part of the recession better than other sections of the country, now seems to be experiencing worsening labor market conditions while jobless rates in other parts of America are trending downward.

Unemployment, Louisiana, Texas, Alabama, Mississippi, Florida, Labor, Statistics

Sources: Bureau of Labor Statistics, Moody's Analytics, The New York Times

Here are three points worth mentioning:

  • If you compare the maps for June ’09 and August ’11, you can see that Louisiana is one of only 15 states that witnessed a rise in its unemployment rate after the end of the recession. As we noted in a post earlier this year, much of this increase may have been attributable to the BP oil disaster and its aftermath on the drilling, fishing, tourism, and oil servicing sectors.
  • The jobs situation hasn’t been much better elsewhere on the Gulf Coast. Of the 10 states in the top quintile for unemployment last month, three – Florida, Alabama, and Mississippi – border the Gulf of Mexico.
  • Three Gulf Coast states rank among the top 10 for jobless rate rises since the summer of 2009, with Florida (+0.5%) in tenth place for June ’09-August ’11 unemployment growth and Mississippi (+0.7%) in seventh place behind Louisiana’s western neighbor, Texas (+0.8%), where jobless rates rose from 7.7% in June 2009 to 8.5% in August 2011.

The spike in regional unemployment means that is all the more necessary for federal and local officials to craft policy solutions aimed at putting the Gulf Coast back to work. Luckily, there’s a bill in Congress right now that could do just that.

The RESTORE the Gulf Coast States Act will channel billions of dollars worth of Clean Water Act penalties from parties responsible for the Gulf oil spill towards restoration projects in states that were directly impacted by the Deepwater Horizon disaster. This funding will rebuild important natural habitats in and around the Gulf of Mexico, and it also will translate into jobs for construction workers, wildlife managers, engineers and scientific researchers.

A win for the environment and a win for a troubled economy: let’s just hope Congress can put this plan into action.

Also posted in BP Oil Disaster, Demographics, Oil Spill, Regional Economic Development, Unemployment | Leave a comment

EPW Committee Approves RESTORE Act, Setting Stage for Senate Vote

By | Bio | Published: September 21, 2011

Earlier today, the Senate Environment and Public Works (EPW) Committee approved a bill that would direct 80 percent of Clean Water Act (CWA) penalty payments stemming from the 2010 BP Oil Disaster towards environmental restoration and economic development on the Gulf Coast. The RESTORE the Gulf Coast States Act (S. 1400) was co-authored by Senator Mary Landrieu (D-LA) and Senator Richard Shelby (R-AL). Seven of the remaining eight Gulf Coast Senators joined Landrieu and Shelby in co-sponsoring the bill, which was supported by EPW Chairwoman Senator Barbara Boxer (D-CA).

Having passed through mark-up, the RESTORE Act will now move to the Senate. In the House, parallel efforts to draw up legislation for the CWA penalties have been taking place for months, with the ultimate goal of crafting bills that will be approved by both chambers.

This is great news for the Gulf Coast. The challenge of reversing the damage from the Deepwater Horizon disaster and the spill that followed remains, but funding from the RESTORE the Gulf Coast States Act will help Louisiana and its neighbors to push ahead with long-delayed wetland rehabilitation and barrier island reconstruction projects that will result in more resilient ecosystems for the region's unique plant and animal life. This work will translate into jobs for area residents and contracts for local companies, providing a much-needed boost to the regional economy.

Despite the rancor and division that have poisoned recent political debates in Washington, a bi-partisan group of committed politicians was able to find a point of common ground in shaping S.1400. We hope that today's victory will be the first step towards the passage of the RESTORE Act in Congress and the implementation of a comprehensive restoration program for the Gulf Coast.

Also posted in BP, BP Oil Disaster, Congress, Green Jobs, Targeted Jobs, Unemployment, Water, Wetlands | 1 Comment

EPA Administrator Stresses Importance of Wetland Restoration for Gulf Recovery

By | Bio | Published: August 9, 2011

Last week, hundreds of scientists, engineers, and policymakers involved in the rehabilitation of threatened environments gathered near Baltimore’s Inner Harbor for the 4th National Conference on Ecosystem Restoration (NCER). One of the featured speakers was Lisa Jackson, who also serves as the head of the Environmental Protection Agency and as the chair of the Gulf Coast Ecosystem Restoration Task Force.

In her address, Jackson said that restoration of the Gulf Coast’s wetlands would be a major focus of the task force’s final report, which is slated to be released this fall. As the task force examines the long-term impacts of land loss in the region, it will work to address pressing questions about the management of the Mississippi River and the labor-intensive projects that have been proposed to restore its delta, the largest along the Gulf of Mexico.

Her words carry great weight. The RESTORE (Resources and Ecosystems Sustainability, Tourist Opportunities and Revived Economy of the Gulf Coast) Act promises significant funding for environmental work in areas affected by the BP oil disaster. The marshes and swamps of coastal Louisiana are vitally important for the overall health of the Gulf of Mexico, so it is particularly encouraging to hear that the Pelican State’s wetlands will receive special attention.

By emphasizing the link between Louisiana wetland restoration and Gulf-wide ecosystem recovery at NCER, Jackson provided affirmation for the central role that the Mississippi River Delta has played, and will play, in the region’s future.

Also posted in BP, BP Oil Disaster, Land Loss, Oil Spill, Water, Wetlands | Leave a comment

Billion Dollar Baby: After BP’s Big Damage Pledge, Is More Money Needed to Restore the Gulf?

By | Bio | Published: May 25, 2011

A billion dollars can buy you a lot of things — an NFL team, a top-flight soccer club, even the obscenely large house of a globe-trotting tycoon.

One thing it can’t buy you is a healthy Gulf of Mexico, especially after a catastrophic event such as the BP oil disaster last spring. While we’re excited about BP’s pledge last month to make $1 billion dollars in early environmental damage payments, our enthusiasm is balanced with the understanding that considerably more money will be needed to fully restore areas affected by the 206 million-gallon spill.

A Down Payment on Delta Restoration

BP, which reported $7.1 billion in net profit for the first three months of 2011, negotiated the proposed payout with two federal agencies (the National Oceanic and Atmospheric Administration (NOAA) and the Department of the Interior (DOI)) and the five states along the Gulf of Mexico (Alabama, Florida, Louisiana, Mississippi, and Texas). The agreement will allow BP to earn early action credits for addressing some of the environmental effects of last year’s spill. These payments could then reduce the company’s future obligations under the Natural Resource Damage Assessment (NRDA) process, which will likely take several years to complete.

Sources: Council on Environmental Quality, Wikimedia Commons

The money won’t be enough to cover all the costs of the disaster (as we’ll explain later), but there’s no denying that the down payment from BP could provide an unprecedented opportunity for Louisiana, which was hit with much of the oil from the Macondo well, to kick off long-delayed restoration projects in its coastal marshes and swamps.

The Mississippi River Delta covers most of southeastern Louisiana, and it is a significant source of fresh water and nutrients for the Gulf of Mexico. This area also is an important habitat for dozens of marine species that spawn and grow near the southern coast of Louisiana. For these reasons, the state of the delta and its environs is a useful gauge for the health of the Gulf.

Unfortunately, the Mississippi River Delta is a system on life support. What’s more, efforts to save this region are not moving fast enough to slow the pace of land loss, leaving the weakened wetlands increasingly vulnerable to damage from hurricanes, oil spills, and other disasters.

For example, in the four years since Congress authorized wetland restoration work under the Water Resources Development Act (WRDA) of 2007, little progress has been made on completing the projects outlined in the Louisiana Coastal Area (LCA) Near-Term Plan, which serves as a roadmap for restoration and preservation initiatives in the Pelican State’s wetlands. While the de-authorization and closure of the Mississippi River Gulf Outlet (MRGO) was an important step towards reversing decades of marsh and cypress wetland loss in St. Bernard Parish and New Orleans, the roll-out of large-scale initiatives like the MRGO restoration (which would include the rehabilitation of the Central Wetlands Unit) has not yet occurred. In addition, priority projects like the Barataria Basin Barrier Shoreline Restoration and the Medium Diversion at White Ditch have barely moved past the planning phase.

If, as promised, $100 million of the $1 billion BP pledge is used for environmental restoration in the State of Louisiana, thousands of people could be put to work at LCA sites across the coastal zone. Additional funding from DOI and NOAA could provide necessary resources for the U.S. Army Corps of Engineers to expedite projects including the pulsing diversions and other heavy engineering projects aimed at reconnecting the Mississippi River to its sediment-starved delta. All of that would be great news.

Continued Need for CWA Penalties

However, we must not forget that the environmental losses stemming from the BP oil disaster were probably far higher than $1 billion. For instance, when a hull breach caused the Prestige to sink off northwestern Spain in 2002, tens of thousands of tons of oil were released into the North Atlantic. Local unemployment jumped as jobs disappeared in Galicia’s seafood sector, and the region’s tourism revenue fell in the wake of the ecological disaster, widely regarded as the worst in Spain’s history. The World Wildlife Fund estimated that the cost of the Prestige disaster, which was much smaller than the Gulf oil spill, ranged from $3.4 – 6.8 billion.

Aside from the significant economic effects of incidents such as the Deepwater Horizon disaster (which already are being felt in Louisiana), we must also consider the cultural costs of spills. For example, the Exxon Valdez disaster was linked to subsequent declines in area fish populations that were devastating for Cordova and other fishing communities near Prince William Sound.  In southern Nigeria, the source of 40 percent of America’s oil imports, 50 years of incessant oil leaks and pipeline ruptures have resulted in the release of 1.5 million tons of petroleum in the Niger Delta and the Bight of Biafra. These spills have ruined farmland and important subsistence fisheries for local ethnic groups, including the Ijaw and the Ogoni.

How does one put a price tag on such losses? How soon will we understand the ecological effects of the massive oil spill and the subsurface dispersant releases last year in the Gulf of Mexico? When, if ever, will the rhythm of life in the Gulf Coast’s fishing towns return to pre-spill normalcy? For an incident on the scale of the BP oil disaster, multiple billions of dollars – not just one — will be needed to revitalize the threatened ecosystem and the economies that depend upon it.

Everything must be done to ensure that the money from BP’s pledge goes towards two near-term goals – rehabilitation of the region’s environment and the creation of job opportunities for its residents. At the same time, we must also continue to fight for the lion’s share of Clean Water Act penalties leveled against BP and other responsible parties. Congress still is deliberating on what to do with the money, and we must let them know that despite this down payment by BP, the CWA money should still be sent to the region whose people and businesses need it most — the Gulf Coast.

If you would like Congress to dedicate the Clean Water Act penalties to Gulf Coast restoration, please click on this Action Alert to send a message supporting the measure to your representatives.

Additionally, one of our generous supporters has offered to match $1-for-$1 any online gift made to EDF before May 31st, specifically to help us pass the RESTORE the Gulf Coast Act of 2011.  The RESTORE Act will force the government to allocate the fines paid by BP to Gulf Coast restoration, where it is needed most.  Please make your gift right now and it will be matched $1-for-$1.

Also posted in BP, BP Oil Disaster, Oil Spill, Regional Economic Development, Stimulus, Water, Wetlands | Leave a comment

Trawling for Help: Fishing Losses Illustrate Spill’s Effect on Louisiana Seafood Sector

By | Bio | Published: May 24, 2011

How have fishermen been faring since the BP oil disaster? Like so much else along the Gulf Coast, it depends on whom you ask.

On the one hand, there are signs that the outlook for the region’s marine industries is brightening. Revenues have rebounded at many seafood restaurants in New Orleans, and with Memorial Day fast approaching, anglers and boat charterers have been gearing up in earnest for the start of southern Louisiana’s summer fishing rodeos.

On the other hand, when we consider the deep decline in dockside sales that occurred in the immediate aftermath of last year’s spill, we see that the men and women who earn their living catching and processing fish from the Gulf of Mexico face a steep path to economic recovery.

Crab and Shrimp Case Study

The Times-Picayune ran an excellent article last month about how the value and quantity of Louisiana seafood hauls changed during and after the spill. The author of the story, Benjamin Alexander-Bloch, referenced landing data from the Louisiana Department of Wildlife and Fisheries (LDWF).

Unsurprisingly, Alexander-Bloch found that 2010 was not a banner year for fishing receipts. Comparing last year’s values against those from 2006 through 2009, he noted that 2010 fishing tonnages were lower than the baseline averages from the ’06-’09 reference period. Values declined as well, though the extent of revenue drops varied by seafood type.

We took his analysis a step further and looked at how monthly returns changed after the Deepwater Horizon explosion. We focused on the tonnages and landed values for two of the more valuable species (crab and shrimp) during the nine months after the disaster (May 2010 – January 2011). We would have extended our study further, but we didn’t have data for February 2011 through the present.

Scanning through the graphs, we saw that dockside receipts for crabs and shrimp fell and then rose in the months following the spill. Compared to the May-January average for 2006 – 2009, we found that the cumulative landed value of shrimp ($96, 970, 471) was 28.40% less than the ’06-’09 baseline ($135,439,596). For crab catches, the May ’10 – Jan ’11 total of $22,196,790 was 22.09% less than the ’06-’09 baseline ($28,490,806). You can see how the values compared month-to-month in the below charts.

Sources: Louisiana Department of Wildlife and Fisheries (LDWF); The New Orleans Times-Picayune

What was the reason for the declines? It seems that they stemmed largely from precautionary fishing restrictions implemented by the National Oceanic and Atmospheric Administration (NOAA) shortly after the disaster.

The Coast Guard first reported sightings of oil sheen near Louisiana’s coast about a week after the April 20, 2010 explosion of Deepwater Horizon. Several days later, in a move welcomed by the Louisiana Seafood Promotion and Marketing Board, NOAA announced that seafood harvesting would halt for ten days in waters that had been severely impacted by the spill. By June, about 88,500 square miles of the Gulf of Mexico had been closed to seafood harvesting.

This no-go fishing zone shrank dramatically after the Macondo well was capped, and shrimp hauls began to climb sharply from their summer low as trawlers returned to the Gulf. Crab catches continued falling for several more months before tonnage numbers reversed course.

Fishing for a Lifeline

Behind these economic losses were lost paychecks, late mortgage payments, and shattered hopes. More than a year after the disaster, promotional boards all along the coast are still struggling to champion their products and maintain the momentum of the seafood sector’s recovery. Lawsuits by local groups and angry grumblings about the pace of payouts betray the real hardship stalking workers in a region that had ridden out the recession pretty well before the spill. Despite the money that’s already been awarded to fisherman and others affected by the spill, there is still plenty of want in the coastal counties and parishes of this region.

That’s why we need to look at ways to generate jobs with long-term potential for residents of the Gulf Coast. One such project could involve putting people to work on restoration initiatives. Many fishermen already take on temporary jobs in other sectors throughout the year, so transitioning to work at home elevation sites or rehabilitated cypress swamps might not be a huge leap for them. Furthermore, these men and women understand the natural habitats of this region, and they could offer invaluable insight on how best to manage freshwater, saltwater, and brackish habitats as the region copes with oil spill recovery and the ongoing floods from the Mississippi River. These efforts would provide workers with an opportunity to protect and preserve their treasured environment for their children and grandchildren.

The Gulf Coast’s fishermen will need support from their state capitals and from Washington to implement policies that will restore damaged coastlines and repair fishing grounds affected by the spill. This complex task could be helped along immensely with Clean Water Act penalties from the companies that harmed the Gulf (and its fishing industry) in the first place.

Shouldn’t our country make every effort to turn this vision into a reality? Makes sense to us.

Also posted in BP, BP Oil Disaster, Fish, Targeted Jobs, Unemployment | Leave a comment

For Richer? No, for Poorer: Statistics Reveal Post-Spill Slowdown in Coastal Louisiana Job, Wage Growth

By | Bio | Published: April 20, 2011

Source: Flickr (matt coats)

During the run-up to the one-year anniversary of the Deepwater Horizon disaster, you probably read an article or two detailing the questionable use of BP’s money by elected officials on the Gulf Coast. Sensational stories about county officers rewarding themselves and their cronies with bloated contracts and shiny new gadgets during and after last year's spill appeared in The Washington Post and dozens of other newspapers. 

Should we be surprised or shocked by these revelations?  Show us a disaster, and we will find you egregious examples of profiteering in its wake.  It is naïve to suggest that the BP oil disaster, occurring in a poor region with a troubled history of malfeasance, would have been any different. 

However, it’s equally naïve to assume that things are now hunky-dory for everyone on the Gulf Coast. A year after the Deepwater Horizon explosion, we do not see legions of “spillionaires” sunning themselves on the region’s sandy white beaches.  Instead, we see thousands of dispossessed fishermen, service workers, and everyday people trying hard to make ends meet in a difficult economy.  We see people sweating in ever-longer unemployment lines and find their families avoiding trips to the beach, for fear of scaring youngsters with searing images of tar balls and rotting dolphin carcasses washing ashore. 

Lest you think we’re playing sad violins without statistics to back up our statements, take a look at the latest labor market report for the Mississippi River Delta.  This region bore the brunt of the oil disaster last summer, so it’s instructive to see how things have changed there in recent months.  When we compare workforce statistics from February 2010 against those for February 2011 (the most recent available), we find evidence that things have not improved for the average worker in that section of the spill zone.  

If anything, they’ve gotten worse. 

Trickling Down to Whom? 

Before the Deepwater Horizon explosion, Louisiana’s economy had been performing relatively well, with steady rates of labor participation and healthy wage growth despite the downturn.

Yet between February 2010 and February 2011, the unemployment rate in the nine parishes of the combined New Orleans and Houma Metropolitan Statistical Areas jumped more than one percent, while the national unemployment rate for civilian workers fell by nearly one percent. 

The increase in joblessness was alarming because of its magnitude and its scope. Unemployment rates rose by 0.9% or more in every one of the seven parishes in the New Orleans Metropolitan Area (Jefferson, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist, and St. Tammany). Similar jumps in unemployment were observed in the two parishes of the Houma Metropolitan Area (Lafourche and Terrebonne). 

In Plaquemines Parish, one of the hardest hit sections of coastal Louisiana, the rate of unemployment surged from 5.9% to 8.4% between February 2010 and February 2011, equivalent to a 42.4% jump in the jobless rate. In another wetland parish, St. John the Baptist, the February 2011 unemployment rate (10.5%) stood a full percentage point higher than the national average of 9.5%. 

Changes in parish-level unemployment between February 2010 and February 2011. In the top graph, the two parishes furthest left form the Houma Metropolitan Statistical Area (MSA), while the remaining seven form the New Orleans MSA. In the bottom graph, increases in unemployment are shown on an inverted scale. Over the twelve-month period, the regional unemployment rate rose nearly 18%, surging from 6.4% to 7.5% (Sources: Louisiana Workforce Commission, U.S. Census Bureau)

We also see that in the energy sector – source of some of the highest paying jobs in the Mississippi River Delta – employment either held steady or dipped slightly in the months after the spill.  The New Orleans Metropolitan Area reported 100 fewer workers in “oil and gas extraction,” with employment falling from 7,600 workers (February 2010) to 7,500 workers (February 2011).  Similarly, in the Houma metropolitan area, the number of people employed in “support activities for mining” (i.e., servicing rigs and fuel facilities) fell from 4,900 in February 2010 to 4,700 one year later. Related sectors such as shipbuilding also have taken a hit, with the number of New Orleans area workers engaged in boat construction falling by 500 (equivalent to 8.3% of the Feb. ’10 workforce) since last winter. 

The weakening job market has been mirrored by a worsening situation on the salary front.  Across much of the nine-parish region, weekly wages for workers have flat-lined since the BP oil disaster.  In the New Orleans metropolitan area, workers’ earnings barely budged between February 2010 and February 2011, with average weekly take-home pay moving from $824.33 to $826.19, an increase of $1.86.  This miniscule growth in average compensation (0.2%) was about 1/10 of the increase in Consumer Price Index (2.1%) over the same period, suggesting that workers’ pay was not keeping pace with inflation. 

These numbers only tell the part of the story for one section of the spill zone.  If we were to examine unemployment (and underemployment) throughout the entire Gulf Coast, we would likely find even more evidence of the deleterious impacts wrought by the Deepwater Horizon disaster and its sticky aftermath.  While the “gusher of money” spewing from BP may have improved the financial situations of a relatively small number of politically connected residents, these broader statistics show that the wealth has not been trickling down to average folks in the region. 

Show Them the Money 

The “spillionaire” articles have prompted much-needed conversations about accountability and public spending in government chambers along the Gulf Coast.  We too believe that strict oversight will be needed to ensure that legal fines, Clean Water Act penalties, and other payments are directed towards efforts that will restore the environment and improve economic conditions for all affected by the spill. 

However, the fact remains that the lingering problems plaguing oil-soaked wetlands and ocean bottoms damaged last year will not be solved without money from the parties that were responsible for this catastrophic event.  We hope that lawmakers across the country will look past the screaming headlines and recognize this salient fact as they debate the fate of those funds in the weeks to come.

Also posted in Analysis, BP, BP Oil Disaster, Oil Spill, Unemployment | Leave a comment

What Could the Oil Spill Commission Report Mean for Restoration Work in Louisiana?

By | Bio | Published: February 9, 2011

Deep Water ≠ Light Reading: At 380 pages, the Oil Spill Commission report offers an in-depth discussion of the 2010 disaster in the Gulf. One of the challenges facing Congress and the White House in 2011 is how to implement the report's recommendations, including ones that are pertinent to the health and survival of Louisiana's wetlands (Source: Oil Spill Commission)

Shortly after the Oil Spill Commission published its latest report to the President on January 11, the Environmental Defense Fund and seven other non-profits released a statement encouraging Congress to act on one of the report’s key recommendations.

The groups urged the Republican-led House and the Democratic-led Senate to unite behind proposals to direct 80 percent of the Clean Water Act (CWA) penalties assessed on parties responsible for the spill towards Mississippi River Delta restoration.  This theme was soon picked up on other blogs, and its message was echoed in timely editorials published later that week in The New Orleans Times-Picayune, The Economist, and The New York Times.

Given the broad base of local support for Gulf Coast restoration, and the shared opinion that oil spill penalties should support this initiative, it would make sense for a significant portion of the responsible corporations’ CWA fines to go towards rehabilitation of regions affected by the spill.  However, as Louisiana and its neighbors continue along the uneven path towards recovery, the question on many minds is how soon this environmental restoration funding–via CWA fines from BP, Transocean, and/or Halliburton–will translate into economic benefits for the people of the Gulf Coast.

And of those benefits, one could not come soon enough: jobs.

The Best of Times, the Worst of Times

At first glance, the employment issues facing Louisiana might not seem severe. That's because by some metrics, the state is doing far better than its peers.

Louisiana netted 19,200 new non-farm jobs between October 2009 and October 2010, while the United States as a whole eeked out a gain of 35,000 over the same period, according to the Bureau of Labor Statistics. In the two years since the collapse of Lehman Brothers and the commodity and stock price slumps that followed, Louisiana’s unemployment rate has consistently remained below the national average.  In addition, the announcement of new factory openings and impending trade deals last summer was seen as evidence of the Louisiana economy’s resilience to recessionary shocks.

However, when you delve deeper into the numbers, you find that things are far from perfect in the Pelican State.  Especially worrisome are recent developments in Louisiana's employment indicators.  Louisiana was one of only 16 states to report an increase in unemployment between October 2009 and October 2010, and while the national unemployment rate fell slightly from 10.0 percent in November 2009 to 9.8 percent in November 2010, the state's unemployment rate rose from 7.3 percent to 8.2 percent during the 12-month period.  These numbers show that the gap between joblessness in Louisiana and unemployment in the rest of the United States is narrowing. In other words, they suggest that the job market in the Pelican State is worsening at the very moment when the job market of the nation-at-large is improving.

The wetland parishes have not escaped the economic pain.  In the New Orleans-Metairie-Kenner metropolitan statistical area – home to most of the Mississippi River Delta’s residents – every one of the seven parishes reported an increase in unemployment between November 2009 and November 2010.  The jobless rate in Orleans Parish surged from 8.1 percent to 9.8 percent, matching the national average.

One of the factors behind the recent uptick in unemployment was the BP oil disaster.  The effects of the Gulf oil spill appear to have been concentrated in the coastal parishes that were impacted earliest (and longest) by subsequent fishery closures and deepwater drilling moratoriums.  These events idled thousands of workers, putting a chill on the economy of southern Louisiana.  While the disaster itself created unexpected windfalls for some residents, many workers, especially those in the fishing and fossil fuel sectors, wonder if a return to pre-spill normalcy is possible now or in the near future.

Problems in Plaquemines Parish

As an example, consider the experience of Plaquemines Parish.  The finger-shaped parish, which includes the southernmost sections of Louisiana, extends into the Gulf of Mexico.  Given its lengthy coastline, the thinly-settled peninsula is economically dependent upon the riches that lie within and beneath its surrounding waters.

In 2009, Plaquemines Parish ranked fourth (behind the more heavily populated Terrebonne, Lafourche, and Jefferson Parishes) in the percentage of state commercial fishing licenses held by its residents.  That year, Plaquemines Parish issued 811 licenses to commercial oystermen and shrimpers, who in turn provided business for dozens of bait shops, restaurants, refueling depots, and repair stations dependent upon the fishing industry.  The parish also was an important supply point for offshore oil platforms, providing hundreds of jobs in catering and transportation for residents of Venice, Pointe à la Hache, and other ports.

Plaquemines Parish was one of the first places where oil from the Deepwater Horizon hit land.  Oil sheen was reported in East Bay and West Bay on May 7, and tar balls began washing ashore near South Pass on May 12, less than a month after the April 20 Macondo well explosion.

In the months that followed, temporary work from the Vessels of Opportunity Program and other cleanup projects helped to reduce the impact of the spill on employment in the parish, while the influx of journalists, spill voyeurs, and others provided steady business for companies situated near the spill zone.  Anecdotal evidence of an unexpected boom in Plaquemines Parish was borne out by ballooning sales tax revenue, which increased 80 percent year-on-year between June 2009 and June 2010.

Leader of the pack: The chart above illustrates the important role that fishing played in the pre-spill economy of Plaquemines Parish (Sources: Louisiana Workforce Commission, Plaquemines Parish Government)

Now the cameras have departed, and with them thousands of media personnel.  Since tourism has not yet rebounded to its pre-spill levels, the motels, hotels and restaurants in Plaquemines Parish are struggling to attract clients.  Besides the service sector, other industries critical to the economy of southern Louisiana – including fishing and energy extraction – remain in tough shape.  The sluggish recovery from the deepwater drilling moratorium has idled dozens of oil industry workers, while oystermen and shrimpers in coastal communities have faced shrinking demand for their catches amid a consumer backlash against Gulf Coast seafood.

Requiem for a bream: Several months after the Deepwater Horizon explosion, this dead fish was photographed in an oil-slicked stream near Pointe à la Hache, the seat of Plaquemines Parish (Source: Wikimedia Commons)

Unsurprisingly, the distribution of funds from the Gulf Coast Claims Facility (GCCF) has not been enough to prevent real hardship from stalking the villages and hamlets of Plaquemines Parish, creating a surge of anger and desperation among workers with few alternatives to their pre-spill careers.

What will happen to these people?  What sort of training and development programs could be established to create opportunities for residents of Plaquemines Parish?  And how could these short-term opportunities be structured to improve the long-term health of southeastern Louisiana’s economy? 

The recovery of Plaquemines Parish could be helped along by post-spill legislation and its effect on long-delayed wetland protection projects.  If billions in oil spill penalties are used to expedite environmental rehabilitation in southeastern Louisiana, the swamp could replace the sea as the engine of economic growth in Plaquemines Parish.

The Economic Potential of Environmental Protection

Many of the areas coping with an increase in unemployment are the very places that would benefit most from an expedited program of coastal rehabilitation in southern Louisiana.  As a result of its location along the lowest reaches of the Mississippi River, Plaquemines Parish would be a major site for initiatives to rebuild and restore Louisiana’s deltaic wetlands.

Several of the Louisiana Coastal Area (LCA) projects authorized by Louisiana’s Office of Coastal Protection and Restoration (OCPR) are sited in Plaquemines Parish.  They include the Medium Diversion at Myrtle Grove, the Medium Diversion at White Ditch, the Barataria Basin Barrier Shoreline Restoration, and the Modification to the Caernarvon Diversion.  These public works projects will restore natural habitats critical to bird populations and aquatic life.  In addition, the wetlands and barrier islands they will create shall serve as natural components of the region’s flood defense system. 

The work will be expensive, but these investments will pay dividends by providing a new lease on life for southeastern Louisiana.  The LCA initiatives, in concert with other plans for coastal restoration and flood protection in southern Louisiana, could create tens of thousands of jobs for people throughout the Pelican State.

Hands-on Work at Hopedale: A construction crew installs flapgated culverts at a hydrologic restoration project site in St. Bernard Parish (Source: Louisiana Office of Coastal Protection and Restoration)

If we reference the U.S. Army Corps Chief of Engineers’ project cost estimates for the White Ditch Diversion ($91.5 million) and the Barataria Basin Barrier Shoreline Restoration ($248.6 million), and use a jobs/spending ratio of 9.45 full-time equivalent (FTE) job-years per $1 million from our Central Wetlands Unit analysis, we can conservatively estimate that these two projects alone would create (91.5 + 248.6) * 9.45 ≈ 3,214 full-time jobs in Louisiana. If we instead use the respective spending caps (150 percent of projected cost) to estimate the price tag for these initiatives, and reference the Economic Policy Institute’s job/spending ratio of 20.3 FTE job-years per $1 million for environmental work, then we could say that, at the high end, the Barataria Basin Shoreline Restoration and the White Ditch Diversion would generate (1.5 * (91.5 + 248.6)) * 20.3 ≈ 10,356 full-time equivalent positions in Louisiana.  Inevitably, many of these jobs in construction, landscaping, engineering, and project management would go to residents of Plaquemines Parish, creating new opportunities for its 20,000 residents.

Regional leaders recognize that these efforts are important for the future of Plaquemines Parish and its neighbors.  Parish President Billy Nungesser, who was appointed to the Louisiana Coastal Protection and Restoration Authority (CPRA) in 2009, has stated: “Our coastal plan is our economic development plan.  Failure is not an option.”

We agree.  The comprehensive restoration of southern Louisiana’s wetlands will demand consistent input from visiting planners, engineers, and consultants, providing a new client base for the state’s service sector.  Restored wetlands will provide resilient new habitat for aquatic life, improving the health of important fisheries in the Gulf and supporting the long-term recovery of Louisiana’s marine industries.  The flood protection afforded by buffering swamps and marshes will keep communities and infrastructure sheltered from storm surges and floods, allowing southeastern Louisiana to remain an active hub of America’s offshore energy industry.

To us, the case is clear, but the important decisions now lie with Congress and the President.  They have the power to make restoration funding a priority this calendar year. We hope that the House will act soon on recent legislation from Rep. Ed Markey (D-MA) and Rep. Steve Scalise (R-LA) to direct Clean Water Act funds towards marsh and swamp restoration on the Gulf Coast.  Failure to move now on post-spill penalties for wetland rehabilitation would be a bad break for Louisiana, its beleaguered environment, and its battered economy.

Also posted in BP Oil Disaster, Green Jobs, Oil Spill, Regional Economic Development, Targeted Jobs, The White House, Unemployment, Wetlands | 1 Comment

Music to Our Ears

By | Bio | Published: November 24, 2010

Source: GRN

Let’s have a round of applause for the Gulf Restoration Network (GRN). Last week, it brought together ninety musicians and bands to draft a letter to the President about saving coastal Louisiana.

As reported in The Hill on November 19th, a motley crew of musical acts, including the Indigo Girls, My Morning Jacket, and Pearl Jam, urged President Obama to remain focused on long-term rehabilitation of areas impacted by the BP oil disaster. For centuries, the Mississippi River delta and other sections of the Gulf Coast have served as incubators of jazz, zydeco, and other musical genres, making this region an important center for American music.

While praising the creation of a Gulf Coast Recovery Plan and efforts to set up a $20 billion trust fund for community damages, the artists noted that the “amazing and irreplaceable cultures of the Gulf region” remain vulnerable in the wake of the disaster. Citing the need to reverse decades of environmental degradation on the Gulf Coast, they suggested that “a large portion of the fines levied against BP should be dedicated to on-going restoration efforts through…Gulf Restoration plan implementation.” 

These musicians join a growing chorus of movers and shakers who support the use of oil spill fines and assessments for environmental restoration in coastal Louisiana. While the chances of securing dedicated funding from BP’s Clean Water Act penalties appear slim during the lame-duck session of Congress, we’re encouraged by the crescendo of interest in preserving and protecting the Pelican State. It’s our hope that the efforts of these notables and others will translate into tangible measures to rebuild and restore this region.

Also posted in BP Oil Disaster, External Media, Oil Spill, The White House | Leave a comment

Has It Really Been Six Months?

By | Bio | Published: October 20, 2010

Fire on the water: Coast Guard vessels hose down the burning wreckage of Deepwater Horizon on April 21, the day after the accident that triggered the BP oil disaster (Source: United States Coast Guard)

Half a year has passed since the Deepwater Horizon explosion on April 20th. In the months that followed, the wetlands of southern Louisiana and the waters of the Gulf of Mexico were sullied by millions of barrels of crude oil from the Macondo well, and the region’s residents were forced to confront the myriad economic and environmental issues stemming from one of the biggest oil spills of all time.

The BP oil disaster brought much needed attention to the ecological challenges facing coastal Louisiana, a topic we had been discussing on our blog for months prior to the spill. However, there’s a sinking feeling that the capping of the well and the drafting of a recovery report have solved all the problems in the Gulf.

They haven’t, which is why we and others at the Environmental Defense Fund have been actively involved in efforts to shape the recovery and renewal of the Gulf Coast. On one of our sister blogs, Chief Oceans Scientist Doug Rader penned a fascinating series this past September about the environmental risks associated with ignoring the lingering effects of the spill on wildlife in the Gulf.

More recently, EDFers in our Washington office have been busy with efforts to secure BP’s Clean Water Act penalty payments for wetland restoration and other regenerative projects near the spill zone. Writing yesterday in The Hill, Paul Harrison, the director of EDF’s coastal Louisiana program, observed that Congress has yet to confirm whether BP’s penalties will be funneled into the Federal treasury or rightly diverted to a recovery fund for long-term restoration of the Gulf.

If you ask the people who lived through the trauma of the spill, they’ll confirm what we already know: Significant majorities of Democrats (82%), Republicans (67%), and Independents (67%) in areas affected by the BP oil disaster support federal and state involvement in comprehensive rehabilitation of the Gulf Coast.

Why should they be denied what they rightfully deserve? As we’ve stated before on our blog, ecosystem restoration has the potential to generate jobs and generate hope for the people of the Gulf Coast. As we pass the six-month milestone, we hope that decision makers and politicians from both parties will come together to ensure that the wetlands and waters of this region are made whole again.

Also posted in BP, BP Oil Disaster, Congress, Oil Spill | Leave a comment