A Crude Awaking In the Gulf - by Tony Munoz,

The BP oil spill has exposed the US’s inability to cease oil production in the Gulf of Mexico even in the face of an unprecedented ecological disaster. Even as the crude soils the coastwise beaches, sensitive wetlands and destroys businesses, the offshore industries are demanding the administration end its six month moratorium on deepwater drilling. On the human level it’s about jobs, but the loss of production is estimated to be 26,000 barrels per day (bpd) in the fourth quarter and 70,000 bpd in 2011, which will have a profound effect on the nation’s economic engine and its ability to emerge from the global economic crisis.

The US can ill-afford to fall behind in the global economy especially while its debt is off the charts and unemployment is at 9.5 percent, which is expected to remain at this level throughout 2010. The GOM produces 8 percent of the entire US domestic production accounting for 28 percent of liquid consumption. The US maintains 2 percent of world oil reserves and the GOM accounts for 19 percent of the reserves. Meanwhile, US demand for oil and gas is expected to rebound by 5 percent this year even with tepid economic growth.

For more; The Maritime Executive Magazine :: A Crude Awaking In the Gulf