LSU Economist Dr. Loren Scott warned President-Elect Joe Biden’s win over President Donald Trump could cause problems for Louisiana’s oil-dependent economy.
The Obama Administration, where Biden served as Vice President, placed new limits on offshore drilling through executive orders, bypassing Congress. Scott said a repeat could spell trouble for one sector.
“I don’t think it is going to cloud the picture for refining. I do think it will cloud the picture for the exploration industry, especially the Gulf of Mexico,” said Scott.
Biden’s climate policy calls for the country to be carbon-neutral by 2050 and for the expansion of renewable energy jobs along with the rollback of fossil fuel-related industries.
Scott said on Biden’s campaign website he vowed that if elected he would stop all permitting in public waters, which includes the Gulf of Mexico.
“It is one thing to say that we are not going to sell any more leases but once a company buys a lease out there and it starts to drill and then it starts to produce oil, there are a lot of permits you have to get at every stage of this,” said Scott.
Governor Edwards has also vowed to see the state cut its carbon emissions by a quarter in the next five years, half within the next ten years, and be carbon neutral by 2050, a goal set by the Paris Climate Agreement.
Scott said Biden’s energy policy impact would be most felt most in exploration-based economies in south Louisiana.
“So if he suddenly says there will be no more permitting in the Gulf of Mexico you can pretty much close the doors on Houma, and you can certainly close the door on Port Fourchon,” said Biden.
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