Kiplinger’s sees huge problems with declining US domestic oil production, thanks to new strict guidelines from the Obama Administration. No doubt producers around the world are enjoying this. An excerpt:
“Domestic oil production faces a long-term decline in the wake of curtailed offshore drilling in the Gulf of Mexico, stemming from the BP oil spill last year. In four to five years, a loss of several hundred thousand barrels a day from the Gulf is likely, enough to significantly boost U.S. reliance on imported oil.
It’s no surprise, really. New deepwater drilling has largely come to a standstill in the Gulf of Mexico. Despite the October end of the White House moratorium on deepwater drilling, not a single new permit has been issued for drilling in waters more than 500 feet deep. And even permits for shallow-water drilling are currently taking twice as long to complete — roughly 60 days — as before. The Bureau of Ocean Energy Management, Regulation and Enforcement — the federal agency responsible for approving new drilling permits — notes that, in the aftermath of the BP spill, new applications require increased scrutiny from regulators and can’t be rushed.
“Permits and reviews will be approved only when we are satisfied that all applicable regulatory requirements are met,” says Nicholas Pardi, an agency spokesman. “Our priority remains, as it must, to ensure that oil and gas drilling is done in a safe and environmentally responsible manner.”
Industry analysts say that enhanced scrutiny is creating costly uncertainties for the Gulf’s offshore drilling industry.”Big Peace
