Moreover, the resumption in deep water drilling has the immediate effect of increasing consumption.
Already President Obama has initiated a ban on approving new deep water drilling contracts.
How much economic impact will a slower permitting process on shallow-water drilling have in the region?
But oil producers were happy to build (or buy) deep-water drilling platforms when those fields seemed economical.
The company controls 48 deep water drilling rigs and currently has about a 7.5% dividend yield.
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The lack of standards for deep water drilling risk management will spawn a litter of over-reaching regulation.
Many oppose the moratorium imposed on offshore deep-water drilling by the Obama administration in the wake of the spill.
After the BP oil spill, the administration put a moratorium on an already anemic record of approving deep-water drilling permits.
In late May, Uncle Sam lifted the ban on shallow-water drilling, which occurs in less than 500 feet of water.
The U.S. Interior Department's royalty rate for deep-water drilling in the Gulf of Mexico is 18.75%--up from 12.5% two years ago.
We will participate in industry-wide efforts to improve the safety and reliability of subsea blow-out preventers and deep water drilling practices.
Jim Noe, general counsel of shallow-water drilling contractor Hercules Offshore defended shallow-water drilling, saying such projects tap relatively low-pressure reservoirs, making blowouts less likely.
Achenbach argues that a series of minor failures and misunderstood interdependencies, combined with the extreme conditions of deep water drilling caused the BP Oil Spill.
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President Obama also announced a moratorium on all deep-water drilling projects.
There was a lot of verbiage tossed around about the dangers of deep-water drilling, that no one had any experience with this kind of thing, yada, yada, yada.
Over the last three years, we have built in U.S. shipyards or acquired new U.S. built and flagged vessels primarily designed to service the deep water drilling market.
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That said, many of the newly identified deposits are located in the central North Sea or to the west of Scotland, and will require deep-water drilling which is expensive.
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And in the immediate wake of the disaster, it seemed like it might change everything, as a moratorium was imposed on deep-water drilling in the U.S. in May 2010.
This incident may show that deep-water drilling is too risky, but it might instead be just a perfect storm of ineffective regulation, poor decision-making, and bad luck, with minimal chance of recurrence.
An administration spokeswoman said the government had told companies seeking permits to drill in shallow water to wait "a day or two" until regulators issued guidelines for new permit requirements for shallow-water drilling projects.
Obama issues moratorium in gulf deep water drilling.
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There is no free lunch whether with coal mining or deep-water drilling, or for those who are honest, in the enormous underlying mining and chemical infrastructure needed to build vast arrays of wind and solar farms.
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In a court filing before the hearing, attorneys for BP and the Justice Department argued that the plea agreement imposes "severe corporate punishment" and will deter BP and other deep-water drilling companies from allowing another disaster to occur.
Environmentalists strongly oppose shale-gas extraction due to fears that fracking may contaminate water supplies, the oil-sands industry because it is energy-intensive and dirty, and deep-water drilling because of the risk of oil spills like last year's Gulf of Mexico disaster.
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What is clear is that much useful information is being gleaned about how to deal with a disaster of this kind, which can be expected to happen again, and other kinds of spills, as the prospect of deep-water drilling for oil is realised.
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By issuing shallow water drilling permits at a rate 10 percent that of the same time last year, BOEM has imposed a de facto ban on offshore energy exploration on top of the official deepwater stay that ran from May to November.
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Whether or not the administration puts a temporary stop to deep-water drilling, we can only imagine what effect the added cost of higher premiums for drilling rig insurance and more sophisticated safety equipment is going to be in the months and years ahead.
"Our intention is to move forward thoughtfully, looking at how we can protect the resources of the United States and making thoughtful decisions, " he said on CNN's "State of the Union, " noting that deep-water drilling has been done thousands of times without incident.
Deep-water drilling was supposed to hold off the effects of a decline in world oil production that began in 2005 and is forecast to continue unabated through the rest of this century, just as several billion Chinese and Indians go on an energy consumption spree.
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