2010 U.S. Deepwater Drilling Moratorium
Encyclopedia
On May 30, 2010 a 6 month moratorium on all deepwater offshore drilling
on the Outer Continental Shelf
was declared by U.S. Secretary of the Interior
Ken Salazar
. The limitation was in response to the Deepwater Horizon oil spill
which occurred in the Gulf of Mexico.
issued a press release stating that Salazar would issue a 6 month moratorium on drilling in the area. In a May 30 announcement of the limitation Salazar said:
The moratorium was to impact 33 deepwater drilling sites, less than 1% of the 3,600 oil and natural gas production platforms in the Gulf of Mexico.
The Obama administration assembled a panel to advise his administration on how to address offshore drilling in the wake of the spill. The group have stated that Salazar's May 27 report to Obama portrayed their approval of the moratorium, they claim that the panel reviewed a previous draft of the document with bans only on new drilling in water deeper than 1,000 feet.
Louisiana officials also expressed concern that the moratorium would further harm the economies of coastal communities. The oil industry employs about 58,000 Louisiana residents and has created another 260,000 oil-related jobs, accounting for about 17 percent of all Louisiana jobs. Following the one-year lifting of the ban, in July 2011 The Heritage Foundation
's Robert Bluey
reported at Scribe that deepwater drilling permits were down 71% from their historical monthly average of 5.9 permits per month, while shallow-water permits were off 34% from their historical 7.1 monthly average permits.
, a company with financial interests in deepwater drilling, filed suit in the Eastern District of Louisiana District Court seeking an injunction to bar enforcement. Judge Martin Feldman
issued a decision for Hornbeck on Tuesday, June 22, 2010, granting a preliminary injunction, barring enforcement of the order.
The White House appealed the injunction. On July 8 the Court of Appeals for the Fifth Circuit
, based in New Orleans, ruled against a stay of moratorium, saying the administration failed to show how it would be irreparably harmed if the stay was not granted. The court also said that the administration also "made no showing that there is any likelihood that drilling activities will be resumed pending appeal."
Salazar has indicated that the Department of the Interior
will "issue a new order in the coming days that eliminates any doubt that a moratorium is needed, appropriate, and within our authorities."
Deepwater drilling
Deepwater drilling is the process of oil and gas exploration and production in depths of more than 500 feet. By this definition, there are approximately 600 deepwater wells in the Gulf of Mexico....
on the Outer Continental Shelf
Outer Continental Shelf
The Outer Continental Shelf is a peculiarity of the political geography of the United States and is the part of the internationally recognized continental shelf of the United States which does not fall under the jurisdictions of the individual U.S...
was declared by U.S. Secretary of the Interior
United States Secretary of the Interior
The United States Secretary of the Interior is the head of the United States Department of the Interior.The US Department of the Interior should not be confused with the concept of Ministries of the Interior as used in other countries...
Ken Salazar
Ken Salazar
Kenneth Lee "Ken" Salazar is the current United States Secretary of the Interior, in the administration of President Barack Obama. A member of the Democratic Party, he previously served as a United States Senator from Colorado from 2005 to 2009. He and Mel Martinez were the first Hispanic U.S...
. The limitation was in response to the Deepwater Horizon oil spill
Deepwater Horizon oil spill
The Deepwater Horizon oil spill is an oil spill in the Gulf of Mexico which flowed unabated for three months in 2010, and continues to leak fresh oil. It is the largest accidental marine oil spill in the history of the petroleum industry...
which occurred in the Gulf of Mexico.
Background
On May 27 the DOIUnited States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
issued a press release stating that Salazar would issue a 6 month moratorium on drilling in the area. In a May 30 announcement of the limitation Salazar said:
The moratorium was to impact 33 deepwater drilling sites, less than 1% of the 3,600 oil and natural gas production platforms in the Gulf of Mexico.
The Obama administration assembled a panel to advise his administration on how to address offshore drilling in the wake of the spill. The group have stated that Salazar's May 27 report to Obama portrayed their approval of the moratorium, they claim that the panel reviewed a previous draft of the document with bans only on new drilling in water deeper than 1,000 feet.
Louisiana officials also expressed concern that the moratorium would further harm the economies of coastal communities. The oil industry employs about 58,000 Louisiana residents and has created another 260,000 oil-related jobs, accounting for about 17 percent of all Louisiana jobs. Following the one-year lifting of the ban, in July 2011 The Heritage Foundation
The Heritage Foundation
The Heritage Foundation is a conservative American think tank based in Washington, D.C. Heritage's stated mission is to "formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong...
's Robert Bluey
Robert Bluey
Robert B. Bluey is an American conservative blogger and journalist. He is director of The Heritage Foundation Center for Media and Public Policy...
reported at Scribe that deepwater drilling permits were down 71% from their historical monthly average of 5.9 permits per month, while shallow-water permits were off 34% from their historical 7.1 monthly average permits.
Litigation
Soon after, Hornbeck Offshore ServicesHornbeck Offshore Services
Hornbeck Offshore Services, Inc through its subsidiaries, operates offshore supply vessels , multi-purpose support vessels , and a to provide logistics support and specialty services to the offshore oil and gas exploration and production industry, primarily in the United States, Gulf of Mexico,...
, a company with financial interests in deepwater drilling, filed suit in the Eastern District of Louisiana District Court seeking an injunction to bar enforcement. Judge Martin Feldman
Martin Leach-Cross Feldman
Martin Leach-Cross Feldman is a United States federal judge on the United States District Court for the Eastern District of Louisiana. He was nominated by President Ronald Reagan on September 9, 1983, to a seat vacated by Jack M. Gordon. He was confirmed by the United States Senate on October 4,...
issued a decision for Hornbeck on Tuesday, June 22, 2010, granting a preliminary injunction, barring enforcement of the order.
The White House appealed the injunction. On July 8 the Court of Appeals for the Fifth Circuit
United States Court of Appeals for the Fifth Circuit
The United States Court of Appeals for the Fifth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts:* Eastern District of Louisiana* Middle District of Louisiana...
, based in New Orleans, ruled against a stay of moratorium, saying the administration failed to show how it would be irreparably harmed if the stay was not granted. The court also said that the administration also "made no showing that there is any likelihood that drilling activities will be resumed pending appeal."
Salazar has indicated that the Department of the Interior
United States Department of the Interior
The United States Department of the Interior is the United States federal executive department of the U.S. government responsible for the management and conservation of most federal land and natural resources, and the administration of programs relating to Native Americans, Alaska Natives, Native...
will "issue a new order in the coming days that eliminates any doubt that a moratorium is needed, appropriate, and within our authorities."