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    Monday, May 13, 2024

    Obama administration lifts 6-month Gulf deep water oil drilling freeze

    Washington - The Obama administration on Tuesday lifted the deep water oil drilling moratorium that the government imposed in the Gulf of Mexico in the wake of the disastrous BP oil spill.

    The administration has been under heavy pressure from the industry and others in the region to lift the six-month ban on grounds it has cost jobs and damaged the economy. A federal report said the moratorium likely caused a temporary loss of 8,000 to 12,000 jobs in the Gulf region.

    While the temporary ban on exploratory oil and gas drilling is lifted immediately, drilling is unlikely to resume immediately. Drilling companies must meet a host of new safety regulations before they can resume operations, officials said.

    Michael Bromwich, director of the agency that oversees offshore drilling, said it would take "at least a couple of weeks" after the ban is lifted before permits are approved.

    Interior Secretary Ken Salazar said that new rules imposed after the BP spill - the worst offshore oil spill in the nation's history - have strengthened safety measures and reduced the risk of another catastrophic blowout.

    "Operators who play by the rules and clear the higher bar can be allowed to resume" drilling, Salazar said at a news conference.

    The secretary said he knows that some people in the oil industry and along the Gulf Coast will say the new rules are too onerous.

    "Others will say that we are lifting the deep water drilling suspension too soon. They will say there are still risks involved with deep water drilling," he said.

    The truth is, there will always be risks involved with deepwater drilling, Salazar said. "As we transition to a clean energy economy," he added, "we will still need oil and gas from the Gulf of Mexico to power our homes, our cars, our industry."

    The new rules imposed by the administration will make oil and gas drilling in the Gulf "safer than it has ever been," Salazar said.

    Rep. Charlie Melancon, D-La., called the end of the drilling ban great news for Louisiana's economy and workers.

    Salazar emphasized that the move would include new requirements for those seeking to drill exploratory wells. Those entities and the companies they represent will have to prove they have the appropriate steps in place to contain a worst-case scenario.

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