• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Obama Administration Approving Only 35 Percent of Gulf Drilling Plans

    A new report from a New Orleans-based group reveals that the Obama administration is approving just 35 percent of the oil drilling plans for the Gulf of Mexico so far this year. It is also taking an average of 115 days — nearly four months — to secure approval from the Bureau of Ocean Energy Management, Regulation and Enforcement.

    Those numbers contrast sharply from previous years. This historical average is a 73.4% approval rate. The approval time has nearly doubled; the historical average is 61 days for the government to approve plans.

    For plans that require drilling activity, the numbers are even worse. New regulations require all deepwater drilling plans to undergo an environmental assessment process. Those plans have an average approval time of 222 days or more than seven months.

    The data were included in the latest release of the Gulf Permit Index from Greater New Orleans Inc. It has monitored this trend since last year’s oil spill in the Gulf of Mexico. The delays have continued for more than 18 months later.

    Drilling permits don’t fare much better under the Obama administration either. One sign of hope might be a recent uptick in shallow-water permits. Greater New Orleans Inc. reported:

    Deep-water permit issuance continues to lag the monthly average observed in the year prior to the oil spill. Only 5.0 deep-water permits are being issued per month since September 2011, representing a 0.8-permit — or a 14% — monthly reduction from the average of 5.8 permits per month. This number also represents a 2.0-permit — or a 29% — reduction from the historical average of 7.0 permits per month over the past three years.

    Shallow-water permit issuance is rising above the historical average. Since September 2011, 8.3 shallow-water permits, on average, were issued. That number represents an increase of 1.2 permits — or 31% — from the monthly average of 7.1 permits per month observed in the year prior to the oil spill. However, this number represents a 6.4-permit — or a 44% — reduction from the historical average of 14.7 permits per month over the past three years.

    The slowdown of activity in the Gulf of Mexico is having an impact beyond Louisiana, where one deepwater rig can create 700 jobs locally. Lack of production harms employment across America. It also strips much-needed revenue from the federal government, according to Nick Loris, an energy expert at Heritage.

    “Allowing access for exploration and creating an efficient regulatory process that allows energy projects to move forward in a timely manner will not only increase revenue through more royalties, leases, and rent,” Loris recently wrote, “it will also create jobs and help lower energy prices in the process.”

    Posted in Featured, Scribe [slideshow_deploy]

    10 Responses to Obama Administration Approving Only 35 Percent of Gulf Drilling Plans

    1. Laurie Davis says:

      He signed a deal with Brazil for deep water drilling…… turns out one of his big time supporters is heavily invested in this deal… Soros. http://online.wsj.com/article/SB10001424052970203

      He recently arranged a deal with the Russians for drilling in the Artic – - deep water. http://www.euractiv.com/energy/us-russia-ink-bigg

      Why not off shore here and give thousands their jobs back…. and more? It is criminal that he ignores our own unemployed while using the excuse for 'the environment"…. when he is arranging deals around the world for deep water drilling… except here. Looking out for America? – - hardly.

    2. Ted Kuhnen says:

      There was no BP oil spill. It was all a gigantic fraud perpetrated by the Obama administration.

    3. Geeze people….Doncha know WE don’t need those jobs, but Brazil does? After all, how do you think Soros is going to repay that $2 Billion dollar taxpayer loan without those Gulf drilling rigs!! See, Obama DOES have priorities !http://bit.ly/tgkHOK

    4. Jersey City Kid says:

      Citizens and companies have rights and responsibilities in this US. If the government is clearly out of line and acting against the better interests of these entities, then it is encumbent on them to tell the government to go to hell. When that happens, a regime like Barry's can not exist.

    5. Alex Hanson says:

      To go one step further, what would be the environmental impact on the trans US – Canadian pipeline?
      Economically speaking it would be a boon on job creation thousands of jobs while pressuring a fuel cost reduction in time. Which in turn would aid the stability factor for both areas.

    6. rmgdonnow says:

      This is part of the Obama gang's program of reducing the energy available to the people and industries of the U.S., to reduce our standard of living to that of a second or third class nation (the bureaucracy and politicians to retain their prosperity, of course) defense also being severely reduced in size and technology. And it is to be advanced quickly as possible to a degree which will be difficult for a 2013 Republican Administration to correct. It's not just Obama; most of the Democrat party is in favor of his policies, knowing that that their perks will be protected, just as their salaries and perks are being protected, even increased by Obama now.

    7. ron says:

      As a merchant marine boat captain who has worked in the oil field for twenty five plus years I can tell everyone there is no hydrocarbon shortage. Only a shortage of testicular fortitude to do the right thing. Drill, produce, sell domesticly. There is no magical energy ferry that will produce heat as eficently as oil. Look up domestic oil reserves. We are the richest nation in the world as far as resources. The.way the oil field is going right now I will feel lucky if I have a job in a year. A barrel of oil is 42 gal. Only 20% is used for cars, planes etc. That's 8.4 gal. The rest is used for meds. Construction mat. Etc. I don't know about everyone else.but after a month at sea I like my house. It keeps nature out.

    8. Lloyd Scallan says:

      Just answer these questions to understand. Why did the federal government force BP to drill in 5,000 ft of water after the state of Louisiana had already approved a permit in much shallower water? Why the BP spill caused a much damage as it did? Why did the hydrailic BOP fail to shut in the well after the blowout? Why did Obama employ the Jones Act to prevent foreign companies from helping to stop a major portion of the oil from reaching shore, after Bush waved the act, without hesitation, after Katrina. The answers: Obama had to make sure this "crisis" was as severe as it was to justify exactly what he is doing today.

      • allen says:

        Because Obama is a SOCIALIST. God man what do we have to show you. Just look at this country go to Hell.

    9. Bobbie says:

      oops, did "we" forget the other 65%, Mr. President? Lets Roll!!!

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.