There have been recent reports that drilling in the Gulf of Mexico is coming back strong, with exploration and development returning to 2009 levels. We wish. New analysis (PDF here) by Quest Offshore Resources suggests otherwise:

• As of the end of September, there were 21 floating rigs in the Gulf, of which only 18 were drilling wells. Before the 2010 drilling moratorium, there were 33 floating rigs with 29 engaged in drilling, about a 37 percent decrease.

• The decrease in activity translates to approximately 60 wells lost, based on the original contract terms for the rigs. Loss of the rigs amounts to lost spending of $6.3 billion and annual lost direct employment of 11,500 over two years.

• Since the moratorium 11 drilling rigs have left the Gulf with just one returning. 3 rigs are sitti... more »

As we mark the one-year anniversary of the Macondo oil well spill in the Gulf of Mexico, it is important that we remember the 11 workers who died in that accident, their families and the communities along the Gulf coast that were most affected by this incident. They remind us that, in our efforts to continuously improve safety in our operations, there can be no let-up. And just as we should not lose sight of what happened that day, we should not minimize our industry's unprecedented response to the accident. And we should remain mindful of our industry's strong safety record, as exemplified by the fact that, before the spill, more than 42,000 offshore wells were drilled safely in the Gulf of Mexico over a span of 60 years.

Our commitment to safety has been the guiding force of our operatio... more »

It looks like a child's toy gyroscope on steroids, and it has the technology necessary to stop the flow from a well blowout on the ocean floor. It's the capping stack developed and built by a consortium of oil companies in response to the unprecedented Deepwater Horizon disaster that occurred in the Gulf of Mexico a year ago. The oil spill containment device is 30-feet tall and weighs 100 tons. In the event of an undersea blowout, it would be sent to the nearest port, transported to the well site, and lowered to either kill the well or funnel escaping oil to ships. Although it might never be needed, it is standing by and capable of capturing 60,000 barrels of oil per day from wells up to 8,000 feet below sea level. (Rigzone) Marty Massey, chief executive officer of Marine Well Containment... more »

Editors note: The following letter to the editor from API President and CEO, Jack Gerard appeared in the New York Times on January 31, 2011.

The good news is that "business as usual" for the United States oil and natural gas industry means that we are building on nearly a century of commitment to safe and reliable operations. In the nine months since the tragic accident in the Gulf of Mexico, we've been at work carrying out many of the recommendations now finding their way into reports.

We have produced new guidance on well cementing, begun a new standard on deepwater well construction, held workshops on carrying out a comprehensive safety management system, nearly completed work on state-of-the-art well containment systems, and initiated business planning for a new, independently audited... more »

The National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling released its findings last week and one portion is getting a large amount of attention:

"The United States has the highest reported rate of fatalities in offshore oil and gas drilling among its international peers, but it has the lowest reporting of injuries. This striking contrast suggests a significant underreporting of injuries in the US and highlights the need for better data collection to ensure needed attention to worker safety."

While every fatality is a tragedy, the Commission is incorrect here in their use of statistics, as our Fact Sheet explains:

"Historically, the U.S. government has attempted to estimate Occupational Injuries, Illnesses, and Fatalities using survey sampling and estimation me... more »