BP Terminates GoM Rig Contracts
BP terminated contracts for two deepwater oil drilling rigs in the Gulf of Mexico as the British oil company slashes its exploration budget due to fallen oil prices. Offshore drilling company Ensco said it had received notice to terminate BP-operated rig DS-4 in the Gulf of Mexico. Rival Seadrill Partners announced this week that BP had also cancelled a contract for the West Sirius field in the same region. BP confirmed the termination of both contracts, saying the rigs were "surplus to requirements following BP's adjustment of capital expenditures in response to the new, lower oil price environment. "BP remains the largest investor and leaseholder in the U.S.
EU Decides Against Deepwater Ban
According to a report from The Wall Street Journal, the European Union backed away from imposing a moratorium on deepwater oil drilling in European waters Wednesday, Oct. 13, instead recommending new legislation to enforce tough new EU-wide safety standards for the offshore oil and gas industry. (Source: The Wall Street Journal)
OMSA on Drilling Moratorium Poll
The results of the national poll of Americans who were asked about their view on the Obama Administration’s moratorium on deep-water drilling are very telling, with nearly three-fourths, or 73 percent, saying “a ban is unnecessary, calling the worst oil spill in U.S. history a 'freak accident,'” according to Bloomberg. The moratorium to halt drilling will cut the legs out from under a Gulf Coast economy that is already reeling from the initial spill. It will cause a ripple effect from the offshore workboat operators who supply oil rig equipment all the way down to the grocery stores who supply food for the mariners. The moratorium is short-sighted and will cripple an already hard-hit maritime industry operating in the Gulf Coast region.
