DISASTER IN THE GULF

Can We Quit Drilling Off Shore? Many so-called environmentalists think we can and should. Those pictures of oil-soaked birds and dead sea turtles bother me as much as the next person; however, my answer is that we can't and we shouldn't. As much as I love the gulf coast (after all, I live here), I am a practical man and I know we have to use offshore oil to keep from giving everything we earn to OPEC. To those who want to drastically cut back on domestic oil production my comment is: "You start walking first."



Can We Learn Anything From The Disaster? I think we can. Perhaps the most important is the fact that, we can't expect the government to fix everything. Government agencies had the authority to monitor BP very closely. Still, they couldn't keep the rig from exploding. Just a few days prior to the explosion, it was announced that BP was one of three finalists for the Dept of Interior's safety award. If BP could have prevented the public relations disaster that was this explosion, they surely would have. Despite the fact that the EPA, OSHA, DOE, and DOI with their multitudes of employees had the authority to make inspections and halt production, production proceeded and we have a major problem. Both BP and the government have an arsenal of resources to deal with all the oil washing up on shore but the cleanup has barely begun. Hurricanes, tornadoes, earthquakes, and oil rig explosions will happen from time to time and, if you wait for someone, like the government or the big corporations to save you, you are bound to be disappointed. Our founding fathers came here 400 years or so ago and there was no one to save them. We need to follow their example and provide for ourselves.



What Does This Mean For Our Economy? Lots of fish, shrimp, and birds will die in the gulf. Tourists will stay away from the beaches in droves. Its going to hurt the economy in this region for some time. Its a problem we didn't need at a time when we are discovering that many of us have been living beyond our means and can no longer afford to continue. Companies that produce drilling rigs and have concentrated exploration and production efforts in the gulf will have to stop work or develop more elaborate techniques to manage the risk of offshore production. Still, we will be drilling offshore again because we can't afford not to. Nature produces bacteria that will destroy the spilled oil that escapes man's efforts to remove it.

How Can We Protect Ourselves? Live frugally, invest conservatively, and keep a cash reserve for emergencies and to take advantage of opportunities that will undoubtedly arise in the future. If life hands you lemons, get some tequila and salt and give me a call.