Shocker: 30-40 new permits needed in Gulf per month just to keep up with demand
As we near the first anniversary of the BP Deepwater Horizon oil disaster, April 20, 2010, here are some other points to take into consideration. The BP disaster was a deep-water rig which is much more difficult to operate than a shallow-water rig. Below is a picture of the difference:
The Shallow Water Energy Security Coalition (SWESC) explains even though BP’s Horizon was a deep-water rig:
Unfortunately, the federal officials at the Department of the Interior and the Bureau of Ocean Energy Management (BOEM) has imposed a “one size fits all” approach to permitting that ignores the strong track record of the shallow water drilling industry. The recent history of shallow water permitting in the U.S. Gulf of Mexico is a cautionary tale for those who profess optimism about the end of the deepwater drilling moratorium. Although the moratorium on shallow water drilling was lifted in May 2010, permit approvals have been nominal.
Below is an illustration of how many jobs are at stake because of Obama’s de facto moratorium on shallow water drilling in the Gulf because of slow-walking of permits:
As you can see there are many other ancillary and related jobs which “keep the rig afloat”: food suppliers, repairmen, shipyards, supply boats, trucking and more. Approximately 40,000 jobs. Every 100 jobs on one of these “floating factories” creates 400 jobs. But because of Obama’s de facto moratorium rigs are leaving the Gulf for sunnier shores in other parts of the world. Below is an illustration from page 14 of a study commissioned by SWESC showing rigs which have left the Gulf:
Since the moratorium began on May 6th, 5 jack-up rigs have announced they will leave the Gulf of Mexico. 13 total rigs (shallow and deep) have left, and many others have been mothballed.
Several days ago Jim Noe of SWESC made the stunning revelation the US will need to have 30-40 new permits approved PER MONTH just to significantly boost our production. He discusses this with Neil Cavuto:
Not too likely this is going to happen. Points Noe makes:
- only 22 deep-water permits have been approved by BOEMRE since Oct. 12, 2010.
- production is on the decline, the EIA or Energy Information Administration (the government’s own agency) has said that oil production in the Gulf will decrease this year and next by 250,000 barrels a day.
- we will have 1/3 less oil coming from our own soils than we have today.
- many of the new permits released since the BP spill are for rigs already in operation that will just be resumed.
- the deep-water, if it were a country, would be the world’s 4th largest reserve.
- the US was the third largest oil producing country in the world last year and Obama is trying to take credit for that however this was actually the result of policies changed under Clinton and GWB.
And in case you missed it, yesterday Obama was in Pennsylvania touting “green energy” aka solar and wind. In a “let the masses eat cake“ moment, via our own Beaglescout Yahoo news reported this quote from him:
â€œIf youâ€™re complaining about the price of gas and youâ€™re only getting 8 miles a gallon, you know,â€ Obama said laughingly. â€œYou might want to think about a trade-in.â€
And what mpg does the Obamamobile get? I’m betting about 8mpg if that.
A while later the quote was scrubbed from Yahoo. However CNS news got it on video. Ah, nothing better than seeing it and hearing it right from the horse’s mouth.
Crossposted at Conservative Outlooks
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