Obama responds to Jindal

The 6-month moratorium on deepwater drilling was instituted for a clear reason: the President believes we must ensure that the BP Deepwater Horizon spill is never repeated. This will allow for the new safety equipment and procedures announced in Secretary Salazar's May 27th report to be implemented and for the independent commission to review the cause of the spill and analyze the rules and regulations governing offshore drilling.

A repeat of the BP Deepwater Horizon spill would have grave economic consequences for regional commerce and do further damage to the environment.

Among the drilling rigs that have frozen exploration in the Gulf are 2 operated by BP, and 2 jointly operated by BP and another company. Proceeding without the moratorium would mean that BP would continue deepwater exploration in the Gulf.

Economic impacts were certainly taken into account - the moratorium is surgical and shallow water drilling, in which the risks are better known, is continuing under stricter safety rules. Additionally, oil and gas production is continuing at the existing set of production wells, so we are not expecting short term effects on our oil and gas supply.

Under the administration's legislative proposal to assist those harmed by the spill, workers unemployed because of the 6-month moratorium would be eligible for unemployment assistance. The proposal would also create jobs for cleanup, restoration, renovation and recovery. And the Small Business Administration is currently offering economic injury loans to impacted businesses on the Gulf Coast.