The federal judge who overturned the initial deepwater drilling moratorium has thrown out operational provisions issued in a notice to offshore operators after the Deepwater Horizon accident.

U.S. District Court Judge Martin Feldman yesterday determined that the Department of the Interior failed to give drilling operators and lessees proper notice when it imposed 10 new safety measures under Notice to Lessees-05 (NTL-05). "Notice and comment were required by law. The government did not comply and the NTL-05 is of no lawful force or effect," Feldman said. (Bloomberg)

Feldman's ruling was issued in the Ensco Offshore Co. v. Salazar lawsuit in which the drilling services company is challenging the administration's second moratorium and NTL-05. After the moratorium was lifted last week, the a... more »

For months, numerous studies--such as this one from LSU professor Dr. Joseph Mason and another by Moody's Analytics--have demonstrated the significant economic impact the deepwater drilling moratorium could have on the Gulf and U.S. economies.

A Southern Methodist University (SMU) study released this week is no different, and it presents some alarming figures on the impact the de facto moratorium is having on shallow-water drilling.

According to Dr. Bernard L. Weinstein, associate director of SMU's Maguire Energy Institute, the Interior Department's slowdown in issuing new permits for shallow-water drilling operations could mean:

• 50,000 lost jobs;
• Economic losses of $4.3 billion that would occur if 75 percent of the rigs become idle as a result of fewer issued permits; and
• $12.5 billion i... more »

A new Gallup poll shows Americans are divided down the middle over whether to lift the deepwater drilling moratorium. Overall, 47 percent of respondents say the ban should be lifted, while 46 percent say it should remain in place.

Interestingly, the poll also shows 64 percent of Democrats say the drilling freeze should continue, while 66 percent of Republicans favor removing the moratorium.

Political leanings aside, there's no doubt that the moratorium and the Department of the Interior's new offshore regulations are having a severe impact on oil and natural gas development. Vladimir at RedState points out that while our elected officials say they want energy independence, the "virtual shutdown of the Gulf of Mexico oil and gas business is the biggest, most dramatic retrenchment from that... more »

The Department of the Interior yesterday announced new deepwater drilling requirements that could further delay offshore development and job creation.

The Interior Department says it will require more extensive environmental reviews for deepwater projects, including limiting the use of "categorical exclusions" which eliminate the need to conduct an environmental analysis for every deepwater well. These exclusions make sense for wells being drilled in the same or similar formations where the environmental conditions and risks were identical, and for which extensive environmental analyses already have been conducted.

Further, categorical exclusions are an important and recognized tool that are utilized for approval of federal projects across to the nation, from Department of Defense projects... more »

API President and CEO Jack Gerard told Congress today that raising the Oil Spill Liability Trust Fund cap from $75 million to $10 billion "would place about 145,000 jobs at risk."

In prepared remarks, Jack explained congressional legislation to raise the cap could force all but the very largest oil companies out of the Gulf of Mexico, adding that costs for offshore operations could increase by 25 percent.

"The impacts would be devastating...just a 10 percent increase in development costs could render seven current discoveries sub-economic, reducing production, jobs, and putting $7.6 billion in future government revenue at risk."

Jack also said API is developing recommendations for Congress and the administration on how to effectively address liability limits and financial responsibility re... more »