Deep-Water Drilling Resumes

Last May, in response to the worst off-shore oil spill in the history of the U.S., The Obama Administration suspended all drilling in waters deeper than 5,000ft, in the Gulf of Mexico. After millions of barrels of oil flowed into the ocean from the well, and after a series of failed attempts to stop the flow, the BP Horizon “Macondo” well was finally capped, in late July, 2010. But was it too late? In 86 days, an approximate five million barrels (185 million gallons) of oil gushed into the Gulf of Mexico, killing animals as big as dolphins and seals, and as small as tiny shrimp. Eleven heroic oil-rig workers that lost their lives in the explosion.

While BP worked frantically to clean up the mess, with the help of numerous environmental organizations, our incentivized competition, and kind volunteers, everyone wondered what this would mean for the oil industry. The halt on deep-water drilling also angered many Gulf coast residents, as they depend on oil drilling for jobs and money. The halt finally ended in October, with some restrictions. The Obama Administration ended the moratorium, saying deep-water drilling could resume, with much tighter rules and regulations.  These rules set higher standards for well design, stricter rules for blowout preventers, more emergency response training, and more safety certifications. BP’s Horizon rig was five years overdue for a 90-day safety inspection when it exploded. In addition to the stricter rules, the same approval process applies to companies drilling-offshore, in addition to obtaining the permit needed to drill. For the complete list of rules, click here. 

All that to say, Monday, March 1, 2011 marked a big day in the oil industry, as the Interior Department approved Noble Energy’s permit to drill 6,500ft deep in the Gulf, the first new permit since the spill in the Gulf last year. Before, permits were almost immediately approved, but now, they will only be approved on a well-by-well basis, making sure that every safety precaution is taken.

Many are angry it has taken almost a year to resume drilling, and six other permits await approval as we speak. However, the current situation in the Gulf is far from over, and the damage to the Gulf and it’s residents will most likely be permanent. What do you think?

Alex at X PRIZE