Regional Economics Information

Font Size: A A A

Publications & Resources

Gulf Oil Spill Update: July 13, 2010

On July 12, the U.S. Department of the Interior revised the rules for a six-month suspension of deepwater oil drilling in the Gulf, replacing the earlier moratorium that was overturned last month. In other news, BP was prepared to begin running a pressure test this week on the cap that the company hoped would shut down the leak for the first time. However, the testing was postponed, pending further analysis.

  • Employment
  • Energy
  • Transportation
  • Travel & Tourism

Employment

  • Louisiana coast initial claims for unemployment insurance were relatively unchanged in the first week of July.
  • BP has paid a little more than 108,000 claims, totaling $177.1 million, to individuals and businesses for lost income.

    State # Claims # Payments Amt Paid Avg paid
    LA 28,172 24,521 $86,096,484 $3,511
    AL 22,596 12,651 $34,761,801 $2,748
    FL 29,067 9,020 $31,649,620 $3,509
    MS 12,611 5,553 $16,676,086 $3,003
    TX 3,856 1,168 $3,942,404 $3,375
    Other 8,365 903 $2,905,669 $3,218
    GA 3,378 338 $1,098,723 $3,251
    Grand Total 108,045 54,154 $177,130,787 $3,271
     
    Source: U.S. House of Representatives Committee on the Judiciary
  • The U.S. Bureau of Labor Statistics will release June employment data on July 20.

Energy

  • Crude oil input into Gulf Coast refineries was unchanged in early July.
  • The U.S. Court of Appeals for the Fifth Circuit ruled 2-1 on July 8 against the administrationâ??s request to stay a lower court decision lifting the six-month drilling ban.
  • Production activity in both deep and shallow waters will continue, provided they are in compliance with the new safety requirements.

Transportation

  • The oil spill has had no discernible impact on Gulf ports.
  • Many ships heading towards New Orleans and other Gulf ports are skirting the oil slick as they approach, taking them an average of two hours out of the way.
  • Considering that vessels carrying imports from Europe and Asia are on the seas for several weeks, the diversions are having no effect on deliveries. However, if the slick expands, the detours could get longer.
  • Bottlenecks could develop if a large number of ships become tainted, which could force ships to unload at other ports. If that happens, delivery costs could rise because goods might have to travel farther on both sea and land.
  • Such bottlenecks appear unlikely at this point because dispersants used by BP to break up the slick have thinned the oil, allowing much of it to wash off sullied ships without the need for cleaning. If it becomes necessary, cleaning ships are available to wash any oil off inbound vessels.
  • Exports should not be affected, as oil that sullies outbound ships would wash off during a weeks-long trip.

Travel & Tourism

  • Northeast Florida destinations are reporting an increase in business because of the oil spill. Contacts admit that exact measurement is difficult, but informal polls indicate that some guests had planned to visit Gulf destinations. Attractions in the region reported a very busy May, June, and July.
  • Southeast Florida contacts report that many west Florida coast cancellations appear to be moving to the eastern coast.