Deep drilling permit issued for Gulf

The federal government on Monday told Noble Energy it can resume a deep-water drilling project — the first work of its kind approved since the Obama administration lifted a moratorium prompted by last year's Gulf of Mexico oil spill. Until Monday, federal regulators had not allowed any offshore drilling that had been off limits under the five-month ban against some deep-water exploration, even though the ban ended in October. But offshore drilling advocates were doubtful the move would unleash a flood of permits because the project approved Monday was one of 16 under way when the ban was imposed - and therefore faced a clearer path to approval than proposals filed since last year's oil spill. "While one deep-water permit is a start, it is by no means reason to celebrate," said Sen. David Vitter, R-La. The American Petroleum Institute noted that the government had approved just "one permit for one company." "While every permit is welcome news, tightening the screws on domestic oil and natural gas production during a time of increased demand and global uncertainty is a formula for disaster," said API President Jack Gerard...more