IPAA, IADC warn of extended drilling ban's impacts

Nick Snow
OGJ Washington Editor

WASHINGTON, DC, June 1 -- Extending a drilling ban in many parts of the Gulf of Mexico could have serious economic impacts on the US Gulf Coast, officials of two oil and gas associations said separately on May 28 in response to announcements made the previous day by the Obama administration.

“The administration should not make hasty decisions and advocate legislative and regulatory initiatives that could result in severe limitations to offshore drilling in America—consequences that can further harm the Gulf Coast economy,” Independent Petroleum Association of America Chairman Bruce H. Vincent said in a statement.

“Controlling the well and protecting the environment are the main priorities today,” Vincent said, adding, “We believe the federal government, as it considers new regulations and new offshore exploration policies, should first allow the facts in this incident to be investigated.”

Meanwhile, Brian T. Petty, executive vice-president for government affairs at the International Association of Drilling Contractors, said, “The biggest problem is that they’re going to be down 6 months, which will have cascading economic effects not only for the crews on them but for the companies and people providing supplies onshore. We’re talking about an impact on the order of tens of thousands of jobs.”

There apparently are 25 rigs that actually are drilling in deep water in the gulf, Petty told OGJ. “Others which were permitted will not be able to spud. They’re en route to location or hot-stacked,” he said.

The order which US Interior Secretary Ken Salazar issued at US President Barack Obama’s direction on May 27 could have a bigger impact if drilling operations off production platforms to extend a field are included, according to the IADC official.

Comprehensive, total shutdown
“It’s a comprehensive and total shutdown of all permits involving working drilling operations and future operations in the near term,” he said. “We anticipated that new drilling permit applications would be denied for the 6 months that the president’s independent commission is working. We did not expect existing operations to be stopped dead in the water.”

Vincent noted that IPAA supports Obama’s independent commission that is investigating the Apr. 20 well blowout and explosion that destroyed the Deepwater Horizon semisubmersible rig in the gulf, killing 11 people and causing a massive ongoing oil spill.

“It is important that a thoughtful, thorough, and timely investigation and analysis is conducted to understand what caused the accident and to ensure that the proper, improved safety measures are identified and put into practice to prevent similar incidents in the future,” he said.

“The entire industry is dedicated to working together to protect the health and safety of our people, as well as the environment in which we operate as we work to contain the damage from this incident,” said Vincent, who also is president of Houston-based Swift Energy Co.

“Many of our member companies have offered supplies and services; others are directly helping with the clean-up efforts. This is certainly a time when actions speak louder than words,” Vincent maintained.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Swift, Saka complete Eagle Ford development deal

07/15/2014 Swift Energy Co., Houston, completed its agreement with PT Saka Energi Indonesia to fully develop 8,300 acres of Fasken properties in the Eagle For...

Swift Energy promotes vice-presidents

12/17/2009 Swift Energy Co., Houston, has promoted Randy Bailey to vice-president of production, Steven Tomberlin to vice-president of engineering, and Barry ...

API, IPAA: Obama overlooking industry's job-creation potential

12/03/2009 The American Petroleum Institute’s two top officials expressed concern over the White House’s apparent omission from its Dec. 3 jobs fo...

IPAA advocates fact-based hydraulic fracturing study

11/06/2009 The Independent Petroleum Association of America will work to ensure that an upcoming study on hydraulic fracturing is scientific, based on facts, ...

Eagle Ford shale McMullen joint venture forms

11/02/2009 Petrohawk Energy Corp. and Swift Energy Co. will jointly explore and develop 26,000 acres of Swift Energy’s acreage in McMullen County, Tex.,...

MARKET WATCH: International economic fears boost energy prices

09/18/2008 Energy prices rebounded Sept. 17, with the front-month crude contract regaining most of the $10/bbl it had lost over the two previous trading sessi...

MARKET WATCH: Crude prices fall for fifth consecutive session

09/05/2008 Crude prices fell Sept. 4 for the fifth consecutive session as oil and gas operations in the Gulf of Mexico and along the Gulf Coast began coming b...

MARKET WATCH: Lack of oil, gas disruptions lowers energy prices

09/03/2008 Oil prices dropped to a 5-month low of $105.46/bbl in intraday trading before closing a little under $110/bbl Sept. 2 on indications of little disr...

MARKET WATCH: Lack of supply disruptions lowers energy prices

09/03/2008 Oil prices dropped to a 5-month low of $105.46/bbl in intraday trading before closing a little under $110/bbl Sept. 2 on indications of little disr...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Cognitive Solutions for Upstream Oil and Gas

When Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected