It may not have generated much interest outside energy and
investment circles, but a recent comment by Tidewater, Inc. president Dean
Taylor sent earthquakes through the New Orleans business community. In June,
Taylor told the Houston Chronicle that the international marine
services company — the world’s largest operator of ships service the offshore
oil industry — was seriously considering moving its headquarters, along with
scores of administrative jobs, from the Crescent City to Houston. "We have a lot
of sympathy for the city," Taylor said. "But our shareholders won’t pay us to
have sympathy. They pay us to have results for them." It was
the last thing the hurricane-scarred city needed to hear. Tidewater was founded
here a little more than 50 years ago, and kept its main office in New Orleans
throughout the oi1 bust of the 1980s and the following decades of industry
consolidation, when dozens of energy firms all but abandoned New Orleans for
greener pastures on the Texas coast. In the nearly two years since Hurricane
Katringa ravaged the city, the pace of exodus has accelerated, complicating New
Orleans’ halting recovery; according to the local business weekly City
Business, the metropolitan area has lost 12 of the 23 publicly traded
companies headquartered here, taking white-collar jobs, corporate community
support and sorely needed taxpayers with them — and threatening to leave the
city even more dependent on a tourism-based economy than it was before the
storm. Making matters worse, some observers say, is the city
leadership’s apparent indifference to the bloodletting. Just weeks after
Hurricane Katrina in August 2005, Mayor Ray Nagin, then in the very early stages
of a heated reelection bid, dismissed warnings that many companies, like
displaced residents, might opt to relocate. Nagin said he hoped they would stay.
"But if they don’t," he said with typical glibness, "I’ll send them a postcard."
The comment might have been written off as one of Nagin’s many verbal missteps.
But in the months that followed, the warnings turned out in many cases to be
true, even as the city’s rebuilding effort languished, infrastructure repairs
limped along, the state reimbursement program for damaged homes faltered and the
New Orleans’ infamous crime rate made a sickening comeback. New
Orleans "wasn’t considered a great city for doing business before the storm.
People were always dribbling out," says Peter Ricchiuti, a professor of
economics at Tulane University. While many of the companies that made it through
the storm could stand to benefit from the city’s recovery, he says, Katrina may
have hastened the loss of high-paying energy jobs. "We’re losing the
white-collar jobs and keeping the blue-collar jobs," he says. "We’re becoming
much more of a blue-collar oil industry." One of the latest
examples is Chevron Corp., which is building new offices in the northern
suburbs, 40 miles north of the city across Lake Pontchartrain, and plans to
transfer 550 employees from New Orleans to Covington by the end of the year.
That would take well-paid people out of downtown New Orleans, a move that will
impact the central business district’s economy. "We made the decision in May,
2006, when our employees were making important housing decisions," says Qi
Wilson, a Cheveron spokesperson. The company, like many employees, decided the
north shore offered better security should another hurricane strike, along with
fewer of the post-Katringa headaches that still plague the city. The move "will
make it easier to retain the talent we have, and to attract new talent," Wilson
says. According to Peter Ricchiuti, New Orleans
A. is often struck by hurricanes such as Katring.
B. no longer paid white collars as much as before.
C. failed to recover from the storm as planned.
D. will lose more while-collar jobs in oil industry after the
storm.