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On drilling moratorium


Posted: Jul 14, 2010

So many jump to conclusions. We always have multiple views on issues. This is one of those. This Times editorial does a good job of reasoning why this moratorium is necessary.

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Editorial
A New, and Necessary, Moratorium
Published: July 13, 2010

Despite legal challenges from industry, complaints from local politicians and bad rulings from unsympathetic judges, the Obama administration has rightly chosen to reaffirm its decision in May to suspend deep-water drilling activities in the Gulf of Mexico. On Monday, Interior Secretary Ken Salazar issued a second moratorium to replace an earlier ban that was tossed out in federal court. It is as strong as the first ban and, if anything, more tightly argued.

Whether the new ban can withstand legal challenges remains to be seen. The important point is that the administration has reaffirmed one of the basic lessons of this mess: that industry claims cannot be accepted at face value. BP was tragically unprepared to deal with this spill; indeed, a new and tighter cap that everyone hopes will stop the leak altogether is only now being installed, 13 weeks after the blowout. Until the industry shows it can drill safely in deep waters, and respond swiftly and surely to an accident, it should not be allowed to go forward with that kind of operation.

Drilling, in short, cannot be resumed on faith alone. Mr. Salazar said he would invite input from industry and the public, and was open to modifying the order. But first, he said, industry must “raise the bar on its practices and answer fundamental questions about deep-water safety, blowout prevention and containment, and oil spill response.”

The original May 27 moratorium banned new deep-water drilling in the gulf and suspended existing operations at 33 exploratory deep-water wells for a period of six months. The new moratorium applies the same restrictions for the same time period, ending Nov. 30, unless the administration decides otherwise.

The biggest difference involved the way in which Mr. Salazar cast his argument. The original moratorium focused mainly on depth, proscribing any drilling at depths exceeding 500 feet. The district court judge who overturned the ban, Martin Feldman, in effect said that focusing only on depth was too narrow to be persuasive.

Mr. Salazar chose this time to emphasize uncertain technologies. The new ban covers all floating rigs, like the BP rig, using subsurface blowout preventers, as well as floating rigs that use blowout preventers on board the rig itself. This pretty much covers every deep-water rig with the capacity to drill in the gulf.

There were howls from the usual quarters — from industry, predictably, and from Mary Landrieu, the Democratic senator from Louisiana, who said the new moratorium would cost “thousands of hard-working Louisianians” their jobs.

One must sympathize with the battered residents of Ms. Landrieu’s home state. But one cannot ignore the fact that most of the gulf’s 3,000 producing platforms and shallow-water drilling rigs are still in business, or that President Obama has earmarked $100 million specifically for relief of unemployed oil workers.

The main thing that cannot be overlooked is that it would be folly to resume drilling until everything has been done to make drilling as safe as it can be and to ensure a rapid response when systems fail.

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I think the moratorium was the right decision but - Backwards Typist

[ In Reply To ..]
I think they should definitely make sure that before any drilling takes place in the Gulf or any body of water, they INSPECT THOSE WELLS to the enth degree and make sure they are following the laws and regulations in place.

Also, setting aside $100M may not be enough. Have they totaled the amount of people going to be out of work for this long and are they going to provide their paychecks so they don't lose everything they worked hard to get? Have they took in consideration what the people make per year? I doubt it. They probably just picked a figure and said, "Hey, that sounds good."

Does anyone have any hard numbers on how many people make a living in the Gulf and their yearly income? Sure, they can get it from the IRS, but is the IRS capable of reporting the correct numbers (gross vs. net)? And, how long would that take the IRS to compute those numbers? A year, 2 years?

A lot of unanswered questions here.

drilling moratorium - jj

[ In Reply To ..]
The drilling moratorium is going to be the final nail in La's coffin. Before this recent spill, there has never been one in the Gulf. What is going to happen is that the companies that have wells there are going to move to Mexico and SA. They will not come back. That I believe is our less than competent government's intention and who do you suppose is going to be hurt, certainly not the oil companies and certainly not the politicans. Alternatives are fine, but how long before they are widely available, and what do we do in the meantime. As for making things safe. If they didn't have to drill so far out into the ocean and if the government was even the tiniest bit competent, the current diaster would not be nearly as devastating. the NY Times implies that shallow water rigs are still in business. That's a big lie probably perpetrated by washington DC. Obama's moratorium is just that, a moratorium and there is no drilling.

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