20 More Rigs Could be Set to Leave Gulf of Mexico, In Addition to 11 That Have Already Left Since the Moratorium

Many thanks to Robert Bradley for posting my sequel on the oil rig story at his Master Resource blog. An important report to say the least that originated at the Pelican Institute for Public Policy.

Up to 20 oil rigs could leave the Gulf of Mexico, in addition to the 11 that have already left, since the Obama Administration imposed a moratorium on deepwater oil and gas drilling in May 2010, a new reportfrom FBR Capital Markets has concluded.

Unless the permitting process is accelerated, FBR analysts anticipate that anywhere from eight to 20 rigs could depart the deep waters within the Gulf. The moratorium was imposed in response to the explosion of British Petroleum’s (BP) Macondo oil well on April 20 of last year. The accident resulted in the death of 11 workers and caused an estimated five million barrels of crude oil to spill into the Gulf.

Although federal officials announced they were lifting the restrictions last October, a “de-facto moratorium” remains in effect that stifles energy production and undermines large and small businesses in the Gulf region, industry officials have argued.

Full Report is available here at the Pelican Institute

By Kevin Mooney in Featured Articles, Kevin's Blog on September 14, 2011