Moratorium Lifted on Deepwater Drilling
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The Obama administration announced Tuesday that it is removing the moratorium on deep-water oil drilling, but it is unclear how long it will take for rig to get back up and running in the Gulf of Mexico.
The government said in a statement that rigs drilling in waters deeper than 500 feet will be able to commence drilling, but must comply with the new safety standards set up following the explosion on April 20 on the Deepwater Horizon rig that set off a three-month oil spill.
The moratorium was lifted ahead of the original end date set for November 30 due to political pressures heading into the upcoming election season.
"We do want to be responsive to applications but we need to be careful and make sure the permit applications satisfy the new and old regulatory requirements," Michael Bromwich, director of the Bureau of Ocean Energy Management, said. "If that has the effect of slowing the rate of [approvals] I think we ought to accept that as the cost of improving safety."
Deepwater drilling stocks on the move Tuesday include:
Transocean Ltd. (NYSE: RIG) up 4.23 percent to $64.53
Diamond Offshore Drilling Inc. (NYSE: DO) up 2.74 percent to $68.51
Noble Corp. (NYSE: NE) up 2.36 percent to $34.33
Atwoo Oceanics Inc. (NYSE: ATW) up 2.52 percent to $31.35
The government said in a statement that rigs drilling in waters deeper than 500 feet will be able to commence drilling, but must comply with the new safety standards set up following the explosion on April 20 on the Deepwater Horizon rig that set off a three-month oil spill.
The moratorium was lifted ahead of the original end date set for November 30 due to political pressures heading into the upcoming election season.
"We do want to be responsive to applications but we need to be careful and make sure the permit applications satisfy the new and old regulatory requirements," Michael Bromwich, director of the Bureau of Ocean Energy Management, said. "If that has the effect of slowing the rate of [approvals] I think we ought to accept that as the cost of improving safety."
Deepwater drilling stocks on the move Tuesday include:
Transocean Ltd. (NYSE: RIG) up 4.23 percent to $64.53
Diamond Offshore Drilling Inc. (NYSE: DO) up 2.74 percent to $68.51
Noble Corp. (NYSE: NE) up 2.36 percent to $34.33
Atwoo Oceanics Inc. (NYSE: ATW) up 2.52 percent to $31.35
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