The Moratorium Ruling and Jobs

Reaction to Judge Feldman's ruling against the deepwater drilling moratorium came swiftly yesterday. Environmental groups and many Democrats attacked the decision, while Republicans in general supported it and called it encouraging.

But no one predicted that it would put energy workers back to work immediately.

"This is certainly not going to put the drilling rigs back drilling," Chris John, president of the Louisiana Mid-Continent Oil & Gas Association, told the Times-Picayune. "The practical reality of this decision is that it really doesn't change anything from an operational standpoint in the Gulf of Mexico."

The fact is there is too much uncertainty for oil companies and rig owners to commit to U.S. deepwater drilling now. The White House has announced it will file an appeal to the Fi... more »

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The Ethanol Urban Myth

Last weekend I was having a very pleasant conversation with my neighbors when the subject turned to the oil spill and the need for alternative energy. One neighbor said, "The oil companies don't want us to use alternative energy so they've bought all of the best technologies."

You've probably heard that old saw. It's one of several "urban myths" that have been circulating throughout America for several years. It's not true.

The oil and natural gas industry invests in emerging energy technologies for the purpose of bringing them to the marketplace. For example, the industry's investments in biofuels alone total more than $13 billion. Oil companies today are making renewable diesel from tallow; creating ethanol from sugarcane, waste products and algae; and geo-engineering special microbes to... more »

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Moratorium Lifted

A federal judge in New Orleans today lifted the ban on deepwater drilling.

In a 22-page ruling, Judge Martin Feldman wrote:

"The blanket moratorium, with no parameters, seems to assume that because one rig failed and although no one yet fully knows why, all companies and rigs drilling new wells over 500 feet also universally present an imminent danger."

The White House announced it would file an immediate appeal.

In a statement, API welcomed Judge Feldman's decision to lift the moratorium on Gulf of Mexico deepwater operations and listed some of the activities the industry is taking to improve the safety of deepwater operations.

Immediately after the Deepwater Horizon accident, the industry formed two task forces to examine safety and environmental protection, and recently it formed tw... more »

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Ruling on Moratorium Expected Soon

U.S. District Court Judge Martin Feldman says he will rule on the deepwater drilling moratorium by noon tomorrow.

In suits filed by Hornbeck Offshore Services and Diamond Offshore, federal courts are being asked to issue temporary restraining orders that would end the freeze on deepwater drilling. Diamond says the moratorium amounts to an illegal "taking," and Gov. Bobby Jindal, who filed a brief in the Hornbeck case, says the rights of the Gulf Coast states were ignored when the moratorium was imposed. (The Washington Post)

The moratorium also has been the topic of conversation on several notable blogs.

James Shott at Observations (June 15) believes the administration went too far in imposing the moratorium:

"President Barack Obama's rash decision to stop all drilling in the Gulf and ot... more »

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Jindal Files Brief Challenging the Drilling Moratorium

Louisiana Governor Bobby Jindal today filed an amicus brief supporting the suit challenging the administration's moratorium on deepwater drilling.

The brief argues the administration violated the law by failing to give the Gulf Coast states the opportunity to participate in the policy and decision-making process that led to the moratorium.

Further, the Governor's brief asserts there was no "rational reason" for the moratorium. "A drilling moratorium simply is not necessary to enforce the extensive rules and regulations already in place," the brief states.

In stating its case against the moratorium, the governor's office cites statistics that reflect the moratorium's dire impacts:

  • In "only five months the moratorium will result in the direct layoff of 3,339 Louisiana workers and the loss o... more »

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