Deepwater drilling ban ends

The Obama administration on Tuesday lifted its ban on deepwater drilling seven weeks ahead of schedule, saying new rules cut the risk of a repeat of the BP oil spill, the worst ever to hit the United States.

Restarting deepwater drilling could be slow, however, as oil companies will need to comply with the new regulatory regime and demonstrate they can adequately respond to blowouts before drilling can resume, the Interior Department said.

“The oil and gas industry will be operating under tighter rules, stronger oversight, and in a regulatory environment that will remain dynamic as we continue to build on the reforms we have already implemented,” Interior Secretary Ken Salazar said in a statement.

The Obama administration is lifting the controversial drilling ban as his Democrats prepare for a tough mid-term election in November, amid concerns over the economy and unemployment.

The ban drew sharp protests from Gulf of Mexico lawmakers and a court challenge from companies that complained the moratorium cost jobs and stalled an industry with a relatively good record.

While the reopening of the prized, deep Gulf waters will be good news for drillers such as Transocean Ltd and explorers like Royal Dutch Shell, analysts warn it will take months or years to return to the pace of activity prior to the Macondo disaster on April 20.

 

Advertisements

About BizTV

BizTV is the home for your business. Whether you're an entrepreneur, small business owner or just managing your family's assets, BizTV can help. Find the resources you need to manage your money, start your latest venture or grow your business. BizTV, It’s Your Biz!

Posted on October 12, 2010, in Politics & The Economy and tagged , , , , , , . Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: