Reuters reports that eight deepwater drilling rigs are expected in the Gulf of Mexico this year, which would bring the active deepwater contingent to 29 – just short of the number before the 2010 Macando accident. While that will be a positive step, here are some reasons to hold off popping the champagne corks:

• The eight rigs are not yet in the Gulf, not yet working.
• While permit applications to work on Gulf jobs have been submitted, the rigs will return there only if the permits are approved.
• Given “A” and “B” above, it’s still premature to talk about Gulf drilling being back to normal or “close to pre-moratorium levels.”
• The eight rigs would bring the Gulf rig count to “just short of the level” before the administration’s permit moratorium, not equal to levels of two y... more »

Policies have consequences. Certainly, we’ve seen economic impact in the 2010 decision to halt deepwater drilling in the Gulf of Mexico and the subsequent slow pace of oil and natural gas permitting. A new study released by API underscores this:

The effects of the deepwater drilling moratorium and subsequent permit slowdown have already reduced total capital and operating expenditures in the Gulf of Mexico by a combined $18.3 billion for 2010 and 2011 relative to pre‐moratorium plans. Since April 2010, eleven deepwater drilling rigs have left the Gulf of Mexico. These rigs have gone to countries such as Brazil, Egypt and Angola. Through 2015, the investment in other regions instead of the U.S. associated with these rigs is estimated to be over $21.4 billion including drilling spendi... more »

Well now. It's clear that growth projections assigned to a pro-energy development path - 1.1 million new U.S. jobs by 2020 - are attracting criticism in Washington, where it's always open season on forward-looking proposals.

First the Washington Post took aim at the oil and natural gas industry's job-creating ability, challenging aspects of a recent study by energy consultant Wood Mackenzie - though the newspaper article didn't refute the study's main point: The right policies could create hundreds of thousands of jobs, generate billions in government revenue and put America on a much more secure energy course.

The latest discordant note comes from the Council on Foreign Relations' Michael Levi, who writes that Wood Mackenzie's jobs projections are inflated because he believes the pro-deve... more »

Shell America's Marvin Odum and Alabama mine operator Ronnie Bryant would appear to have little in common. Odum oversees tens of thousands of employees, making decisions that are measurable in the billions of dollars. Bryant has permitting to open a new coal mine that would employ about 125 workers in Alabama.

No question, a galactic difference in scale. But there's at least one common point. Both run businesses that attract environmental attention.

Odum told a U.S. Chamber of Commerce audience last week that a recent lawsuit filed by environmental groups against the government, targeting the federal permitting process, could bring drilling in the Gulf of Mexico to a standstill:

"We are not named in the suit, but we have an interest in how it is resolved - as does every energy consumer in... more »

Nearly 190,000 new jobs and billions in economic growth could result in 2013 if development of offshore oil and natural gas in the Gulf of Mexico returns to where it was before last year's drilling moratorium, according to a new study.

The research by Quest Offshore Resources for API and the National Ocean Industries Association also details the impact of the administration's anti-drilling policies last year - including a moratorium on deepwater exploration, followed by a slowdown in new permits after the total ban was lifted. Quest estimates more than 60,000 jobs were lost primarily because of reduced Gulf spending by energy companies in response to administration policies.

Key findings:

• Total offshore-related oil and gas employment could hit 430,000 in 2013 if the permit slowdown is rev... more »