BP (NYSE:BP) Hit with 7 Year Ban on New Offshore Drilling

If a proposed measure by a US Congressional committee passes both houses of Congress, BP would be banned from any new offshore drilling for the next seven years.

The parameters of the new law would entail any company which has had 10 deaths or more in the past 7 years. While not named specifically, it's an obvious reference to BP.

Although it takes in the 11 workers killed from the explosion on the Deepwater Horizon, BP also was involved in the deaths of 15 workers in a Texas refinery accident in 2005.

The immediate draft calls for the guidelines to include deaths at refineries, drilling or producton facilities, while also breaking US environmental or health laws.

Appeals Court Rejects Drilling Ban, Good News For Exxon (NYSE:XOM), ConocoPhillips (NYSE:COP), Shell (LSE:RDSA), and BP (NYSE:BP)

The appeals court rejected the drilling ban on deep sea wells, this is good news for Exxon (NYSE:XOM), Conoco Phillips (NYSE:COP), Shell (LSE:RDSA), and BP (NYSE:BP). The Obama administration attempted to put into place a six month moratorium into place. This was decided by a three person panel in New Orleans federal court.

In the ruling, it said that the Interior Department did not prove that the government would suffer "irreparable injury" if the drilling ban was not put into place. The court also decided that it would be harmful and arbitrary where thousands of people depend upon energy companies for their livelihood.

The governments argument is that the moratorium is needed while the Obama administration develops new safety standards. With what has happened with BP being responsible for the worst oil spill in U.S. history, they want to ensure there is ample time to move in more emergency equipment to the Gulf region.

It is expected that the Interior Department will now rewrite the rules and issue a new moratorium. The current ban has stopped the drilling on 33 exploratory wells and put a halt on any new permits.