Author Topic: Moratorium on deepwater oil drilling in the Gulf of Mexico  (Read 518 times)

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Moratorium on deepwater oil drilling in the Gulf of Mexico
« on: October 14, 2010, 10:48:11 PM »
The U.S. government on Tuesday lifted a moratorium on deepwater oil drilling in the Gulf of Mexico that was imposed after the BP oil spill.

Interior Secretary Ken Salazar told a news teleconference that new rules imposed after the BP spill have strengthened safety measures and reduced the risk of another catastrophic blowout, and the government have decided it is appropriate to lift the suspension on deepwater drilling for those operators that are able to clear the higher bar that the government have set for safety.

"The oil and gas industry will be operating under tighter rules, stronger oversight, and in a regulatory environment that will remain dynamic as we continue to build on the reforms we have already implemented," he said.

The new rules include many recommendations made in a report Salazar released in May, including requirements that rigs certify that they have working blowout preventers and standards for cementing wells. The cement process and blowout preventer both failed to work as expected in the BP spill.

Under the new rules, a professional engineer must independently inspect and certify each stage of the drilling process. Blowout preventers must be independently certified and capable of severing the drill pipe under severe pressure.

Salazar said many observers will be displeased by the decision; some will find the new regulations "too onerous," while others will say the moratorium is being lifted too soon because deep water drilling remains too risk.

But the U.S. still needs oil and gas from the Gulf Coast, Salazar said, even as the nation transitions to a clean energy economy.

"The truth is there will always be risks associated with deep water drilling," Salazar said. "But we can and we will make the drilling ... safer than it has ever been."

The six-month moratorium was put in place following the explosion in April that destroyed a BP drilling rig and led to the worst offshore oil spill in U.S. history. It was due to run until Nov. 30. With congressional elections approaching, however, U.S. President Barack Obama was under intense pressure from industry and both Democrats and Republicans from the Gulf of Mexico Coast to end the work stoppage, which they said was costing the region thousands of jobs.

A federal report said the moratorium likely caused a temporary loss of 8,000 to 12,000 jobs in the Gulf region.

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