Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Obama issues first deepwater drilling permit

deep water oil drillingThe first Gulf of Mexico deepwater drilling permit since the BP disaster was issued to Noble Energy. By Steve Hargreaves, senior writer


NEW YORK (CNNMoney) -- The Obama Administration approved a permit to drill a deepwater oil well in the Gulf of Mexico Monday, the first such permit issued since the BP disaster last spring.

The permit is for a Noble Energy well in Mississippi Canyon Block 519, approximately 70 miles south east of Venice, La., close to the spot where the BP rig sank.

"This permit represents a significant milestone for us and for the offshore oil and gas industry, and is an important step towards safely developing deepwater energy supplies offshore," said Michael Bromwich, director of the Bureau of Ocean Energy Management, Regulation and Enforcement.

The agency has been heavily criticized by the oil industry and others along the Gulf coast for delays in issuing new drilling permits.

Only 37 shallow water permits have been issued since a moratorium issued following the BP spill in April was lifted in the summer. The deepwater moratorium was officially lifted in October, but no new permits had been issued until Monday.

The industry argued the delays have cost jobs and hurt domestic production. Supporters of the go-slow approach contend it was necessary to reform a badly flawed oversight process in the wake of the worst oil spill in U.S. history.  To top of page

Index Last Change % Change
Dow 26,006.05 -109.60 -0.42%
Nasdaq 7,298.63 0.35 0.00%
S&P 500 2,797.49 -5.07 -0.18%
Treasuries 2.61 0.03 1.12%
Data as of 1:27pm ET
Company Price Change % Change
General Electric Co 17.02 -0.33 -1.88%
Advanced Micro Devic... 12.60 0.42 3.45%
Bank of America Corp... 31.48 0.30 0.98%
Ford Motor Co 12.09 -0.09 -0.76%
Kinder Morgan Inc 19.04 -0.52 -2.68%
Data as of 1:12pm ET
Sponsors

Sections

More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More

The U.S.' biggest companies now pay some of the worst wages. New studies help explain why the wage premium at large firms has broken down. More

Three changes under the new federal tax law mean that the number of tax filers hit by the AMT will drop by about 96% to an estimated 200,000. More