Drilling ban lifted; uncertainties still face Gulf

Deep water oil drills quieted by a six-month moratorium will again hum off the Gulf Coast, helping an industry that, despite its dangers, puts needed money in the pockets of thousands along the Gulf Coast. What's less certain is just how soon the jobs on hold because of the six-month ban will come back to a region trying to recover. Thirty-three deep water operations were halted by the moratorium imposed as the BP oil disaster unfolded. Meeting new federal safety requirements imposed since then will take time for oil companies. "Those big rigs that left the Gulf, it's going to take them a while to come back," said Ronnie Kennier, an Empire, La., fisherman working in BP's vessel of opportunity oil clean-up program. The Obama administration, under heavy pressure from the oil industry and Gulf states and with elections nearing, on Tuesday lifted the moratorium that it imposed in April. The ban had been scheduled to expire Nov. 30, but Interior Secretary Ken Salazar moved up the deadline, saying new rules have strengthened safety and reduced the risk of another catastrophic blowout that caused more than 200 million gallons of crude to spew from BP's well a mile beneath the Gulf. A federal report said the prohibition likely caused a temporary loss of 8,000 to 12,000 jobs in the Gulf region and drilling is unlikely to resume for at least a few weeks. Todd Hornbeck, CEO of Covington, La.-based Hornbeck Offshore Services, said lifting the ban would still leave the industry in a "de facto moratorium stage" until the government fully explains how new drilling permits will be issued. "We're still in the dark," said Hornbeck, who heads one of the companies that sued to block Interior's initial moratorium. His company provides vessels and other services for the offshore industry. ight now, I'm skeptical that it will be anytime soon that permits will be issued even if the moratorium is lifted," he said...more