News -> INDReporter TUE, SEP 14 10:58AM by Nathan Stubbs

AP: Shallow water drilling down 73 percent

Shallow-water oil and gas drilling is down approximately 73 percent from last year, based on an analysis by the Associated Press. The AP reports that new drilling rules, in the wake of the BP Deepwater Horizon rig explosion and oil spill, have slowed shallow water drilling to a near standstill. The Obama administration has also enacted a moratorium on deepwater drilling — drilling in water depths greater than 500 feet — while it studies further regulations that may be needed for deep sea exploration.

The AP's research shows that just four out of 10 shallow-water drilling applications have been approved from June through August while 15 applications were sought and approved in the same period last year. In 2007 and 2008, with higher energy prices, shallow water drilling was even more robust, with drillers seeking an average of 19 permits a month. From the AP:
Environmental groups are encouraged by the trend. But drilling executives say the new rules, which require them to produce detailed spill-response plans and estimates for worst-case scenarios, are adding millions of dollars in costs and causing delays that have led to layoffs. Executives worry that when the Obama administration lifts the six-month moratorium on deepwater drilling, where the risks are greater, the permitting process will be even slower.

Read the full story here.


Comments (7)add
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written by ragin_cajun , September 14, 2010 - 05:35 pm


The least among us now rule the best among us.
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written by Not Amused , September 14, 2010 - 07:40 pm
Must be other states that are taking the hit, because the moratorium so far is not affecting our state's employment: http://www.southernstudies.org...-hoax.html
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written by Resident , September 14, 2010 - 08:19 pm
I assume this is for federal waters 3 miles out? What's the prognosis for state waters and coastal zone drilling (including "shallow water" like Timbalier Bay)? I'll bet those applications are up. Maybe TheIND can look that up?
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written by ETEE , September 15, 2010 - 03:50 pm
The workers in the "Manufacturing Belt" States of Ohio, Illinois, Indiana, Michigan, Wisconsin, Minnesota and Pennsylvania (and, needless to say, Texas) are probably taking a bigger job loss as the Purchase Orders for the Deepwater projects and, now, the Shallow Water Projects grind to a halt. When we are designing the projects at the firm I'm with, the specifications are generally U.S. manufactured machinery and equipment due to availability of parts and service. 33 Multi-Billion dollar Deepwater projects buys a whole lot of EMD engines, Caterpillar Generators and GE Traction Motors. Start adding in the Shallow Water projects and Obama has killed a lot of jobs that no one seems to be "calculating".
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written by NORTHSIDIAN SHOTGUN , September 16, 2010 - 02:23 am
ETEE, Sir thank you for noticing, unlike Not Amused, Its good to know that not everyone has their head in the sand and their rear up in the air assuming the position.
Some folks gauge the economy by the length of the line at the McDonalds window...they remain in their dimension.
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written by Ragin Cajun is Right! , September 16, 2010 - 03:49 am
What an idiot that Obama is. Who gives a crap about the gulf?

They should just get rid of all government regulations and let the oil companies do whatever they want. I'm sure they wouldn't do anything unsafe out there if they were just left to their own rules.

Yea, we need another president like GW who would just let them do what they want. Heck if GW was president, I bet we wouldn't even be in a financial crisis. He'd just let the big banks and wall street go on about their business making up their own rules.

We need to just get rid of the government. In fact maybe we could rename the country. How about the United Corporation of America. Yea that has a nice ring to it. And everyone who isn't a stockholder, well we could just dump them in the gulf.

They could end up like these fish:

http://news.yahoo.com/s/yblog_upshot/20100914/od_yblog_upshot/massive-fish-kill-reported-in-louisiana#mkcpgn=twstdwytk
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written by ragin_cajun , September 16, 2010 - 03:23 pm
"Ragin Cajun is Right" --

I think allowing the industry to regulate itself is not a bad idea. Oil companies don't WANT to pay damages for pollution. If the government set up strong penalties and fines for environmental damage, then got out of the way and left it to the oil companies to figure out how to comply, they would. And they'd do a better job than MMS did, too.

In fact, if you look at the history of government regulation, that is actually how most regulation started out. For example, OSHA very often promulgated standards and then left it to industry to write up compliance and enforcment programs. OSHA inspectors would show and ask the company to demonstrate compliance by showing its inspections regime, its written policies and safety programs. The details of many federal regulations are left to industry.

"We need to just get rid of the government." you confuse anarchism with limited constitutional government. Common mistake among people unfamiliar with the drafting and ratification of the US Constitution. You should read the ratification debates of Virginia to understand the difference between freedom and anarchy.

"Heck if GW was president, I bet we wouldn't even be in a financial crisis. He'd just let the big banks and wall street go on about their business making up their own rules." -- Another stunning misunderstanding of the events that cause financial crises. Banking and finance in the US are the most heavily regulated industries there are. So if you have a problem with the most recent "financial crisis", then you should look at the government mandates that caused it.

You really think the banking industry was unregulated from 2000-2008? You really think that GW succeeded in untangling the government from US financial markets during his presidency, and then immediately after the economy crashed? Do you seriously think that's what happened?


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