Energy Today - February 4, 2011
Rayola Dougher
Posted February 4, 2011
Politico: Alaskans upset with drilling delay: Thursday's decision by Shell Oil to forgo drilling in Arctic waters off Alaska's coast for a second straight year adds to the list of grievances on Capitol Hill against the Obama administration handling of oil and gas production. Shell CEO Peter Voser announced that drilling will be postponed until at least 2012 while the company waits for the Environmental Protection Agency to grant air quality permits and for the Interior Department to grant permission after suspending the company's plans last year after the BP Gulf of Mexico oil spill. "We have been working rigorously for the past five years to meet and exceed all the regulatory and permitting requirements in Alaska," Voser said, according to the Houston Chronicle. "Despite our best efforts, critical permits continue to be delayed, and the timeline for getting these permits is still uncertain." The Foundry: Permitorium: 103 Gulf of Mexico Drilling Plans Await Government Approval: As oil prices continue to climb, a backlog of more than 100 offshore drilling plans for the Gulf of Mexico are awaiting approval from the Obama administration, according to federal data. The federal government has not approved a single new exploratory drilling plan in the Gulf of Mexico since lifting its deepwater drilling moratorium on Oct. 12. There are currently 103 plans awaiting review by the Bureau of Ocean Energy Management, Regulation and Enforcement. The information reveals that the Obama administration -- not the oil industry -- is the culprit for the slowdown of drilling activity in the Gulf. The Gulf of Mexico accounts for more than 25 percent of domestic oil production.
Hot Air: Federal judge holds Obama administration in contempt over drilling "permitorium": The government has not issued a permit to drill in nine months, evidence that the White House has attempted to evade Feldman's orders. The lawsuit alleges that thousands of jobs have been lost in the "permitorium," as some have dubbed the policy, and that the loss of American production has hiked costs and made the US more dependent than ever on imports. It also drove investment in exploration out of the US and into places like Brazil. The economic damage from the permitorium will take years to reverse, as major rigs have already departed the Gulf.
Additional Resources
Oil & Gas Journal: Senators introduce bill to reauthorize pipeline safety act
Bloomberg: Wyoming House defeats proposed gas tax hike
The New York Times: Citing Delays, Shell Ends Plans for Arctic in 2011