2010 United States deepwater drilling moratorium

On May 30, 2010 a 6 month moratorium on all deepwater offshore drilling on the Outer Continental Shelf was declared by U.S. Secretary of the Interior Ken Salazar. The limitation was in response to the Deepwater Horizon oil spill which occurred in the Gulf of Mexico.

Background

On May 27 the DOI issued a press release stating that Salazar would issue a 6 month moratorium on drilling in the area.^[1] In a May 30 announcement of the limitation Salazar said:

“

The six month moratorium on deepwater drilling will provide time to implement new safety requirements and to allow the Presidential Commission to complete its work... Deepwater production from the Gulf of Mexico will continue subject to close oversight and safety requirements, but deepwater drilling operations must safely come to a halt. With the BP oil spill still growing in the Gulf, and investigations and reviews still underway, a six month pause in drilling is needed, appropriate, and prudent.[2]

”

The moratorium was to impact 33 deepwater drilling sites, less than 1% of the 3,600 oil and natural gas production platforms in the Gulf of Mexico.^[3]

The Obama administration assembled a panel to advise his administration on how to address offshore drilling in the wake of the spill. The group have stated that Salazar's May 27 report to Obama portrayed their approval of the moratorium, they claim that the panel reviewed a previous draft of the document with bans only on new drilling in water deeper than 1,000 feet.^[4][5]

Louisiana officials also expressed concern that the moratorium would further harm the economies of coastal communities.^[6] The oil industry employs about 58,000 Louisiana residents and has created another 260,000 oil-related jobs, accounting for about 17 percent of all Louisiana jobs.^[6] Following the one-year lifting of the ban, in July 2011 The Heritage Foundation's Robert Bluey reported at Scribe that deepwater drilling permits were down 71% from their historical monthly average of 5.9 permits per month, while shallow-water permits were off 34% from their historical 7.1 monthly average permits.^[7]

Litigation

Main article: Hornbeck Offshore Services LLC v. Salazar

Soon after, Hornbeck Offshore Services, a company with financial interests in deepwater drilling, filed suit in the Eastern District of Louisiana District Court seeking an injunction to bar enforcement. Judge Martin Feldman issued a decision for Hornbeck on Tuesday, June 22, 2010, granting a preliminary injunction, barring enforcement of the order.^[8]

The White House appealed the injunction. On July 8 the Court of Appeals for the Fifth Circuit, based in New Orleans, ruled against a stay of moratorium, saying the administration failed to show how it would be irreparably harmed if the stay was not granted. The court also said that the administration also "made no showing that there is any likelihood that drilling activities will be resumed pending appeal."^[9]

Salazar has indicated that the Department of the Interior will "issue a new order in the coming days that eliminates any doubt that a moratorium is needed, appropriate, and within our authorities."^[10][11]

References

1. ^ "Salazar Calls for New Safety Measures for Offshore Oil and Gas Operations; Orders Six Month Moratorium on Deepwater Drilling". DOI. http://www.doi.gov/news/pressreleases/Salazar-Calls-for-New-Safety-Measures-for-Offshore-Oil-and-Gas-Operations-Orders-Six-Month-Moratorium-on-Deepwater-Drilling.cfm. Retrieved 20 July 2010. 
2. ^ U.S. Department of the Interior: Secretary Salazar’s Statement Regarding the Moratorium on Deepwater Drilling "Interior Issues Directive to Guide Safe, Six-Month Moratorium on Deepwater Drilling". DOI. http://www.doi.gov/news/pressreleases/Interior-Issues-Directive-to-Guide-Safe-Six-Month-Moratorium-on-Deepwater-Drilling.cfm U.S. Department of the Interior: Secretary Salazar’s Statement Regarding the Moratorium on Deepwater Drilling. Retrieved 20 July 2010. 
3. ^ Kunzelman, Michael (June 22, 2010). "Judge lifts offshore drilling ban as 'overbearing'". Associated Press. New Orleans. Archived from the original on July 17, 2010. http://www.webcitation.org/5rICLBYuG. Retrieved July 17, 2010. 
4. ^ Advisers Cited by Salazar Say Drilling Ban is Bad Idea
5. ^ http://www.instituteforenergyresearch.org/pdf/Our_Views_Are_Not_Appropriately_Represented-_Rev_1.pdf
6. ^ ^{a b} Sasser, Bill (May 24, 2010). "Despite BP oil spill, Louisiana still loves Big Oil". Christian Science Monitor. http://www.csmonitor.com/USA/2010/0524/Despite-BP-oil-spill-Louisiana-still-loves-Big-Oil. 
7. ^ Bluey, ROb. One Year After Oil Spill Was Stopped, Drilling Permits Down Sharply, Scribe, July 15, 2011.
8. ^ Kunzelman, Michael (June 22, 2010). "Judge blocks Gulf offshore drilling moratorium". Associated Press. New Orleans: Google News. Archived from the original on July 17, 2010. http://www.webcitation.org/5rICoDBkQ. Retrieved July 17, 2010. 
9. ^ "Court refuses stay on drilling ban". Upstream (NHST Media Group). July 9, 2010. http://www.upstreamonline.com/live/article220853.ece. Retrieved July 10, 2010. 
10. ^ Rickard, Mary and Jeremy Pelofsky Obama administration to issue new drilling moratorium. Reuters June 22, 2010.
11. ^ Hearing on Drilling Moratorium delayed

External links

• "Moratorium Notice to Lessees and Operators (Moratorium NTL)" (PDF). DOI. http://www.doi.gov/news/pressreleases/loader.cfm?csModule=security/getfile&PageID=33716&p=.pdf. Retrieved 20 July 2010.