Looking ahead on the Obama Gulf Drilling embargo

Many Gulf of Mexico oil rig relocation decisions have yet to be made http://www.nola.com/news/gulf-oil-spill ... ion_d.html

The Obama administration's six-month moratorium on deepwater drilling in the Gulf, that incidentally also impacts shallow water drilling as new permits are not being issued has a potentially devastating impact not only on the oil industry operating in this country, but on the economics of America.

Brian Petty, senior vice president for government affairs of the International Association of Drilling Contractors, predicts "by Labor Day, unless the government relents, or there's some indication that it will be lifting the moratorium for real, for sure, they're gone."

Does anyone have a clue about the long term impact this will have on Americans? Get ready for higher oil prices... way higher. If you thought America was at the mercy of foreign oil already, you have a whole new level of dependence facing us in the very near future. I expect this will translate into fuel costs double from what we currently pay and that there will be a catchup mode that may never catch up during the lifetime we expect to have for oil as our principle energy source. Obama, reflecting a decision in accord with his selections for the Gulf oil spill response committee, is totally out of his element and I suspect not listening to anyone with sound judgment.

Alternatively, if you have any money left for investment, this may be the time to get into alternative energy again, but that will not help this country from sinking to new depths of economic hardship.

Science Chic wrote: While I agree that it is of utmost importance to the livelihoods of the Gulf residents that business resumes, I don't think it's an unwise decision to delay some actions until more information is assessed and more intelligent regulations are put into place. This temporary moratorium is not an end of the world of drilling in the Gulf.
From the article cited:

Thomas Marsh, vice president of Houston-based ODS-Petrodata, which provides intelligence to the offshore industry, notes that two rigs do not an exodus make. Rigs move all the time, he said. Diamond's Ocean Confidence, which is heading to the Congo to do a job for Murphy Oil Corp., is due to return to the Gulf to drill for Murphy in February.

"Rigs will go where the work is, it's as simple as that," Diamond spokesman Les Van Dyke said. "This is a supply-and-demand business. If there is work here, rigs will come here, and just because we take one somewhere doesn't mean we wouldn't come back if conditions were attractive."

Amid the uncertainty in the Gulf, he said, the rich reserves off Brazil or the West Coast of Africa or even Libya appear inviting.

But these are not decisions lightly or hastily made, said John Felmy, chief economist with the American Petroleum Institute.

http://www.csmonitor.com/USA/Politics/2 ... 8page%29/2

Has the moratorium cut domestic oil production?

The Louisiana Mid-Continent Oil and Gas Association reports that the equivalent of 80,000 barrels of oil a day will not go to market due to the moratorium – a shortfall that will be picked up by increasing imports. But 80,000 barrels a day represents less than 1 percent of the 11.7 million barrels of oil the United States already imports daily, according to the Energy Information Administration's website. The EIA reported in mid-June that "to date, energy production and shipments in the Gulf have not been significantly affected by the spill."

http://environment.about.com/b/2010/07/ ... torium.htm

"Before we can recommend lifting the moratorium, one would have to have a conviction that the kinds of concerns it intended to address have been met," said Bill Reilly, the Republican co-chair of the commission established by President Obama. "It doesn't seem to me that we're in that position."

Essentially, the oil industry and its political friends are asking the U.S. government and the American people to trust them to operate safely and do the right thing. But given BP's lousy safety record and laughable oil spill response plan for the Gulf region, and the almost identical response plans filed by the other major oil companies that operate in the Gulf, that's a tough sale to make.

Imposing a moratorium that provides the time needed for the presidential commission to complete its investigation, and for oil companies to review and tighten their safety processes, is a reasonable and measured response to a very unreasonable and unmeasured environmental and economic disaster.

I would hardly say BP oil spill response was 'laughable". Typical political retoric from someone who is totally clueless about the oil industry and in fact against it. n fact to presidential commission is laughable with not one expert on the panel. I can see them providing guidelines for the industry. They not BP created many of the long delays in actions aimed at containing the oil spill since they had no working knowledge, yet the authority to delay while they learned. Simply a stupid way to approach a problem unless you are out to make political hay, which was done.

"...the kinds of concerns it intended to address have been met," said Bill Reilly, the Republican co-chair of the commission established by President Obama. "It doesn't seem to me that we're in that position."" No truer statement spoken. Why? because they are clueless about the technical aspects of the oil industry and are trying to learn without really having any experts to guide them. So the moratorium remains in place because the presidential commission is in the process of learning Offshore drilling 101. How is such a group going to provide more intelligent regulations? Do you honestly believe that the oil industry does not have intelligent people who address safety issues? I'd say that is rather naive. It all amounts not only to another delay but stupid overbearing regulations that will cost Americans dearly today and in the years to come. Let me ask you how you like the results in a few years from now.

And while 80,000 barrels of oil may not be much, was not the objective of this nation to become independent of oil imports? Seems like you are going backwards not forwards. This is why I see oil prices climbing, the cost of oil-based products going up and the control of ME governments making huge inroads in gaining significantly more control over our government. It is not immediate but something you will definitely see in the next 5 years. Soon enough we will pay the price for making political hay with a clueless presidential commission. If you really want to move forward with safety in the oil industry, you need experts with proven track records in safety not environmental political and academic pundits.

This temporary moratorium is not an end of the world of drilling in the Gulf.

No it is not the end of the world. It is of major impact though to all involved in offshore drilling. Rigs go overseas, so do the jobs that locals do. Oil companies pull out, the government will need to repay oil companies the millions of dollars paid for leases they can not access. What you read about is only the tip of the iceberg. Deprived of Gulf basin exploration, oil companies will reduce staff, thus increasing unemployment. There is a trickle down affect that is far reaching. You clearly have no idea of how intertwined oil production is with the well being of our countries' economy. You will soon enough.

Yes, looks more & more like a knee jerk reaction, just like firing that ag. worker Sherrod.
But you can imagine the public outrage if another Gulf well started leaking while we were still trying to clean up this. Highly unlikely, but the POTUS often has to deal with an irrational public.

SS109 wrote: Yes, looks more & more like a knee jerk reaction, just like firing that ag. worker Sherrod.
But you can imagine the public outrage if another Gulf well started leaking while we were still trying to clean up this. Highly unlikely, but the POTUS often has to deal with an irrational public.

"Irrational Public"........think you need to do some ADDITIONAL research
about the spread of this oil and the long-range ramifications of the IMPACT at the "deep sea"level,the "leak",seepage,WHATEVER your
preferred verbage is...has been discovered at the DEEPEST levels of the ocean.....impacting the "core" of the food chain has yet to be
researched. Scientists are NOW pondering(read apprehensive)the ramifications of this RECENT (read within the last week or so) discovery of oil leakage....stay tune folks.....you MIGHT want to become a vegetarian.

Irrational yes. Considering the previous oil spill record of Gulf oil drilliing, how likely would it be to have another catastrophic spill like this especially considering the oil companies would be doing everything by the book under intense scrutiny.

And just because US gulf drilling has stopped, Cuba, Mexico and other nations are increasing their drilling. So the Feds haven't stopped the drilling in the Gulf, just moved it one hundred miles further out.

Think you are MISSING the bigger picture here........it is not a question of allowing drilling (either shallow or deep),but RATHER it is a
question of just how tainted,polluted,oil-laden the DEEP ocean strata really is.....THIS fiasco,travesty,fubar will have a LASTING and
LONG impact on the food chain.....stay tune folks......the REAL data will be unfolding within the next several months,once ALL of the
impact studies,research,investigation folks can access the hideous damage. Not kidding,you might want to consider becoming a vegan.

I think I was just missed by a piece of falling sky - or was it guano?