Tuesday, July 13, 2010

Obama's Moratorium Results in Diamond Offshore (NYSE:DO) Moving Rig Out of Gulf to 'Republic of Congo'

Diamond Offshore (NYSE:DO) announced today it is moving its oil rig Ocean Confidence out of the Gulf of Mexico to the Republic of Congo, and has suspended a contract in the region to make the rig available.

Diamond Offshore President and CEO, Larry Dickerson, said, “As the uncertainty about continued deepwater drilling in the GOM persists, we must consider alternatives that allow our deepwater assets to remain employed. The contract we suspended with Murphy has been restructured into a one-year commitment in the GOM that is expected to recommence when our customer is satisfied that it can obtain the necessary permits and can meet any new regulatory requirements.”

A subsidiary of Murphy Exploration and Production Company (NYSE:MUR) will be the recipient of the oil rig via a new multi-well international agreement.

It's unknown how many jobs Americans have lost as a consequence of Obama's misguided oil moratorium.

This is the second rig Diamond has pulled out of region in the last several days.


  1. Government and business must act responsibly to protect their assets, and the assets of the United states. Neither are doing so. Free enterprise is why this country "was" great. The Government and businesses are out of line and out of touch. They are in a world they created, and now one does not have a clue what to do and the other is running from the issues they helped create.

    The solution: Get rid of the "smart" dumb people in Washington, and businesses need to take a high rode or be regulated, but not to death. America is being destroyed by Government and arrogance.

    We need oil - drill responsibly - lift the ban - cooperate.

  2. Big deal a couple of rigs leave. Analyst predict up to a max of about 5 rigs will leave. That hardly will put a dent in the gulf oil industry. Jobs losses will be minimal.

    Better to be safe than sorry and risk another oil disaster. The consequence of another disaster far out way the loss of a few rigs. The rigs will come back if there is money to be made, you can be sure of that.

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