The decision to lift the controversial oil drilling moratorium in the deep waters of the Gulf of Mexico as a result of the BP (NYSE:BP) oil spill, was for the most part irrelevant, and the time it was in place and the added regulations in essence effectively keep the ban in place even though it has been officially lifted.
This doesn't mean there won't be the resumption of drilling for oil in the deep waters of the Gulf, just that it'll take a long time to vet the process and jobs will continue to be scarce for some time in the region.
Shallow-water drilling is experiencing that very thing now, as the permitting process has slowed things way down from normal, and is being used as a tool in place of an actual moratorium, which would have generated even more of an outrage from the region.
We at Dripping Oil thought Obama was going to wait a little longer to lift the moratorium because of politics and the election, but this is still a political move in that it would have remained in place into November, but there still won't be much activity through that time, making it more symbolic than useful.
It'll take a long time to get things ramped up again and people back to work. And there's no guarantee oil companies will be able to quickly have everything in place to pass the new regulations, which the Interior Department promises will increase as time goes on.
Showing posts with label Interior Department. Show all posts
Showing posts with label Interior Department. Show all posts
Wednesday, October 13, 2010
Monday, October 4, 2010
Exxon (NYSE:XOM) Lobbying Spend Drops to $2.52 Million in 2 Quarter
Exxon Mobil Corp. (NYSE:XOM) revealed in a disclosure report that they've spent $2.52 million in the second quarter on lobbying the Federal government.
While targeting a number of related issues, offshore drilling in the face of the BP (NYSE:BP) oil spill was among the more important.
Last year in the second quarter Exxon spent $.427 million on lobbying the Feds, and $3.39 million in the first quarter of 2010.
For the second quarter Exxon lobbied the Interior Department, Executive Office of the President and Congress.
Other areas of interest being lobbied were continuing sanctions on Iran and clean energy legislation.
The report was filed on July 20 with the House of clerk's office.
While targeting a number of related issues, offshore drilling in the face of the BP (NYSE:BP) oil spill was among the more important.
Last year in the second quarter Exxon spent $.427 million on lobbying the Feds, and $3.39 million in the first quarter of 2010.
For the second quarter Exxon lobbied the Interior Department, Executive Office of the President and Congress.
Other areas of interest being lobbied were continuing sanctions on Iran and clean energy legislation.
The report was filed on July 20 with the House of clerk's office.
Friday, September 17, 2010
Fed Moratorium Study Blasted by Critics
The federal government released a so-called report Thursday saying the oil moratorium put in place in the Gulf of Mexico in response to the BP (NYSE:BP) oil spill isn't causing as much economic damage as originally thought.
The government says the moratorium has only caused the temporary loss of 8,000 to 12,000 jobs in the Gulf region, and about $1.8 billion less in spending.
Allegedly on 2,000 oil rig workers have been out of work during the six-month ban, and the other job losses from the Obama administration came from business serving the industry, such as suppliers.
Critics of the ban, which is just about everybody in the Gulf states, say the oil drilling ban has been devastating to the Gulf economy. They have estimated that as many as 50,000 workers would be affected by the ban.
The first estimate from the Interior Department was for 23,000 workers to be out of work from the moratorium.
I wonder if they're taking into account the four oil rigs already gone or leaving the area, with oil companies saying more will leave in the near future.
Those are thousands of jobs that will never return to the region.
The government says the moratorium has only caused the temporary loss of 8,000 to 12,000 jobs in the Gulf region, and about $1.8 billion less in spending.
Allegedly on 2,000 oil rig workers have been out of work during the six-month ban, and the other job losses from the Obama administration came from business serving the industry, such as suppliers.
Critics of the ban, which is just about everybody in the Gulf states, say the oil drilling ban has been devastating to the Gulf economy. They have estimated that as many as 50,000 workers would be affected by the ban.
The first estimate from the Interior Department was for 23,000 workers to be out of work from the moratorium.
I wonder if they're taking into account the four oil rigs already gone or leaving the area, with oil companies saying more will leave in the near future.
Those are thousands of jobs that will never return to the region.
Monday, August 23, 2010
Federal Investigation Hearing Today, Confronting BP (NYSE:BP) and Transocean (NYSE:RIG)
Today there is a Federal investigation hearing where Federal investigators will be questioning BP (NYSE:BP) executives and managers, as well as rig owner Transocean's (NYSE:RIG) Ltd. There is a panel set to hold the hearings, and each company will be explaining disabled safety systems as well as failures of the well design, causing the worst oil spill in U.S. history.
The combined Interior Department - U.S. Coast Guard investigation has already had three hearings. The prior hearings have taken place in Louisiana where a massive amount of testimony has already been heard. This time, the hearing moves to Houston, where there are several offices of companies involved with the disaster, including BP.
There is much significance to these hearings and the federal investigation. If criminal misconduct is found to have been a factor by any or all of the oil companies that played a part, the panel can turn over its findings to the U.S. Department of Justice. Who is currently doing their own criminal investigation.
It is possible that a fifth hearing will take place. If so, it won't be until several key pieces are recovered from the bottom of the Gulf, including the blowout preventer. The hearings are very similar to that of a trial. Exhibits are presented, witnesses testify under oath, and there is cross examinations. The finding will be reported in January.
The combined Interior Department - U.S. Coast Guard investigation has already had three hearings. The prior hearings have taken place in Louisiana where a massive amount of testimony has already been heard. This time, the hearing moves to Houston, where there are several offices of companies involved with the disaster, including BP.
There is much significance to these hearings and the federal investigation. If criminal misconduct is found to have been a factor by any or all of the oil companies that played a part, the panel can turn over its findings to the U.S. Department of Justice. Who is currently doing their own criminal investigation.
It is possible that a fifth hearing will take place. If so, it won't be until several key pieces are recovered from the bottom of the Gulf, including the blowout preventer. The hearings are very similar to that of a trial. Exhibits are presented, witnesses testify under oath, and there is cross examinations. The finding will be reported in January.
Tuesday, June 22, 2010
Judge Overturns Obama's Moratorium Due To BP (NYSE:BP)
In a surprising move, Martin Feldman, U.S. District Judge from New Orleans has blocked President Obama's six month moratorium, originating because of BP's (NYSE:BP) worst oil spill in U.S. history. The moratorium was at first going to just be for any new deepwater drilling and for only the month of May, but then it turned into a suspension of all Gulf coast drilling. Shutting down 33 of the Gulf's exploratory wells.
The complaint was submitted to the Judge by several businesses who provided many different services who are arguing the moratorium was arbitrarily imposed. In his ruling Feldman agreed, stating in his ruling that the Interior Department is assuming because one rig failed all rigs and companies involved with deepwater drilling are posing an imminent danger.
Feldman wrote, "an invalid agency decision to suspend drilling of wells in depths of over 500 feet simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region, and the critical present day aspect of the availability of domestic energy in this country."
The Interior Department's response to the lawsuit is simply, the moratorium is necessary while the continued attempts go on in the Gulf to stop the crude oil and cleanup the oil spill. "A second deepwater blowout could overwhelm the efforts to respond to the current disaster," said the Interior Department.
The White House said there will be an immediate appeal.
The complaint was submitted to the Judge by several businesses who provided many different services who are arguing the moratorium was arbitrarily imposed. In his ruling Feldman agreed, stating in his ruling that the Interior Department is assuming because one rig failed all rigs and companies involved with deepwater drilling are posing an imminent danger.
Feldman wrote, "an invalid agency decision to suspend drilling of wells in depths of over 500 feet simply cannot justify the immeasurable effect on the plaintiffs, the local economy, the Gulf region, and the critical present day aspect of the availability of domestic energy in this country."
The Interior Department's response to the lawsuit is simply, the moratorium is necessary while the continued attempts go on in the Gulf to stop the crude oil and cleanup the oil spill. "A second deepwater blowout could overwhelm the efforts to respond to the current disaster," said the Interior Department.
The White House said there will be an immediate appeal.
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