By Birmingham Business Journal

The moratorium on oil and natural gas exploration in the Gulf of Mexico could result in the loss of more than 8,000 jobs in the region, including along Alabamaâ¿¿s coast, according to a Louisiana State University study sponsored by an energy advocacy group.

The Gulf region could lose $500 million in wages and $2.1 billion in economic activity over the next six months if the moratorium isnâ¿¿t lifted, LSU said in the study that was sponsored by Save U.S. Energy Jobs, a project of the American Energy Alliance that was established to promote the nationâ¿¿s energy sector.

Joseph R. Mason, economist and Louisiana Stateâ¿¿s endowed chair of banking, found that Alabama, Louisiana, Texas and Mississippi will be negatively affected economically by the moratorium.

He outlines a possibility of a loss of 12,000 jobs nationally in the next six months, as well as a loss of $2.8 billion in economic activity and $220 million in lost tax revenue.

⿿The data are clear,⿝ Mason said in a release. ⿿The moratorium will cost the Gulf Coast region jobs, money and economic development. In fact, the moratorium could be more costly than the oil spill itself.⿝

To read more Birmingham Business Journal coverage of the Gulf oil spill, click here.

Copyright 2010 American City Business Journals
Copyright 2010