Drilling Moratorium May Do More Economic Damage Than the Oil Spill

The six-month moratorium on deepwater oil and gas drilling in the Gulf of Mexico imposed by President Obama is taking a toll on the economy of Louisiana that could far exceed the damage to other industries caused by the BP oil spill.

The moratorium on new deepwater projects in the U.S. Gulf of Mexico will cut planned spending on exploration and production projects by about $1.6 billion from previous forecasts, according to a Barclays Capital survey of oil companies.

Oil and natural gas explorer EXCO Resources Inc said it would buy some Haynesville and Bossier shale property from Southwestern Energy Co for about $355 million.25

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