Petrobras (NYSE:PBR) Preparing to Resume Gulf Deepwater Drilling

The first production from the Cascade and Chinook fields in the Gulf of Mexico by Brazil's state-owned oil giant Petrobras (NYSE:PBR) is set to launch sometime near the end of 2010.

Petrobras owns the entirety of the Cascade field after acquiring the remaining 50 percent from Devon Energy Corp. (NYSE:DVN), which has turned its focus to onshore natural gas in North America.

Concerning Chinook, Petrobras has a 66.7 percent stake in that field, with Total SA (NYSE:TOT) of France having the remaining 33.3 percent. Petrobras is the operator of both the fields.

The oil moratorium from the Obama administration has set the project back, but since the wells were drilled before the implementation of the moratorium, it won't be negatively impacted from the permitting process, which will take a lot of time for competitors to get approved for.

Obama Will Reopen Drilling in Gulf

In a lesson in taking into account all the elements of a situation before making assertions and engaging in demagoguery, Barack Obama has reversed his decision on drilling in the Gulf.

If the Obama had thought this through more carefully, and his advisers would have given better input, he wouldn't be in this compromising situation, where the idea of losing up to 40,000 jobs from the consequences of the moratorium were never a reality that could have been allowed to happen.

You also have to add the significant tax dollars generated by the industry to understand how dumb it now looks to even attempt to talk tough when there is no possibility of there being a bite in it.

More than likely they'll also have to reassess the proposed regulations, which if too draconian, will also have a significant impact on tax revenue, as margins and earnings would decrease as a result.