Last week, Interior Secretary Ken Salazar told Congress that oil production in the Gulf of Mexico "remained at an all-time high, and we expect that it will continue as we bring new production online." He claimed: "In 2009 there were 116 rigs in the Gulf of Mexico, in 2010 in February, 120, in February 2011, 126."

But Salazar's numbers distort the true number of working rigs in the Gulf of Mexico. According to Baker Hughes:

• Four days before the Deepwater Horizon accident there were 55 rotary rigs actually drilling offshore in the Gulf of Mexico.
• On May 28, 2010, when the administration announced the six-month moratorium on deepwater drilling, there were 46 rotary rigs operating in the Gulf.
• Last week, 25 rotary rigs were operating in the Gulf of Mexico.

So the fact that there is an "all... more »

The administration announced today that 13 oil and natural gas companies can resume deepwater drilling activities in the Gulf of Mexico without submitting revised exploration or development plans for supplemental environmental reviews.

In a statement, Michael Bromwich, director of the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), said he is "taking into account the special circumstances of those companies whose operations were interrupted by the moratorium and ensuring that they are able to resume previously-approved activities." The statement added that the companies will have to comply with new regulations and information requirements imposed after the Deepwater Horizon tragedy.

Although this is probably welcome news for the 13 companies, Bromwich's announcement... more »

(Editor's note: Moments ago, American Petroleum Institute President and CEO Jack Gerard warned that the administration's decision today not to allow offshore drilling in the eastern Gulf of Mexico, the Atlantic and the Pacific in the government's next five-year drilling plan could result in the loss of tens of thousands of American jobs, billions less in government revenues and an increasing dependence on foreign energy sources. Below is the text of his statement.)

"As our country looks for ways out of the hole of lackluster economic growth and job creation, today's decision shows that this administration would rather keep digging than take the ladder to increased economic prosperity offered by developing our nation's domestic energy resources.

"The oil and natural gas industry is a rel... more »

The Interior Department's plan to complete supplemental environmental reviews could prevent the U.S. government from holding a Gulf of Mexico lease sale next year, making 2011 the first year since 1965 that no Gulf leases would be sold for U.S. offshore oil production.

As API's Upstream Director Erik Milito explained to reporters yesterday, adding the supplemental reviews could lead to long delays. "Our concern remains how soon they'll be able to get this work done," he said.

Before holding the 2011 sales, the government plans to complete a Supplemental Environmental Impact Statement (EIS), gather public comments, and finalize the EIS. While the industry is hopeful that the work can be done quickly and adequately address any environmental concerns, it is quite possible t... more »

The presidential commission investigating the Deepwater Horizon accident wrapped up the second day of its two-day hearing in Washington yesterday. At the same time, a federal judge in New Orleans was holding a hearing on the administration's deepwater drilling moratorium. Here's a compilation of the latest news as reported by several publications:

• While it's known that the Deepwater Horizon explosion was caused by a surge of gas that rose through the wellbore, the causes remain under investigation and the commission has not yet assessed blame. The lead investigator indicated that the individuals drilling the well "missed signals" but did not base consciously base their decisions on saving money rather than safety.
• Judge Martin Feldman in New Orleans held a closed-door conferen... more »