Entergy report: Gulf damages could total $350B by 2030

Global warming, rising sea levels, more fierce and frequent hurricanes, and environmental degradation could result in $350 billion in losses over the next 20 years on the Gulf Coast, America’s oil and natural gas nerve center, according to a risk assessment released today by power company Entergy Corp. The analysis of hazards, assets and vulnerabilities—including the offshore oil and gas world in the Gulf of Mexico—paints a bleak picture for the energy corridor between Texas and Alabama. “Sitting here doing nothing is not a plan that is acceptable,” says Wayne Leonard, the chairman and CEO of Entergy, a Fortune 500 power provider based in New Orleans. Entergy is one of the largest nuclear power providers in the United States and an advocate of expanding nuclear power as an alternative to fossil fuels, which generate greenhouse gases. Leonard called the report a “call to arms” to Gulf Coast governors, policy makers, and oil and gas companies to wake up to the threat of climate change and do much more to invest in preparations for a risky future. He says the report showed that losses from hurricanes and other environmental hazards would take a toll on the region’s economy. For instance, losses of $350 billion, which amounts to rebuilding New Orleans’ entire asset base six times, would consume about 3% of the region’s gross domestic product each year, the report said. The $4 million study was done by McKinsey & Company, an economic research firm, and Swiss Re, a company that specializes in risk assessments.