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 17,550.69 -47.51 -0.27%
Nasdaq 5,105.55 -9.83 -0.19%
S&P 500 2,093.32 -4.72 -0.22%
Treasuries 2.21 0.06 2.84%
Data as of 6:11pm ET
Company Price Change % Change
Apple Inc 114.64 -3.80 -3.21%
Baxter International... 40.31 0.80 2.02%
Bank of America Corp... 17.80 0.03 0.17%
Baxalta Inc 37.10 3.95 11.92%
Frontier Communicati... 5.25 0.10 1.94%
Data as of 4:02pm ET
Sponsors

Sections

The company's movie studios went up 13% thanks in large part to "Avengers: Age of Ultron." More

Facebook patented a technology to allow lenders to survey your friends' credit scores and use them to approve or reject your loan application. More

Candle-Lite is committed to manufacturing in America -- which is a good thing because it contributes more than $300 million to Ohio's economy. More

You can't blame it on the economy anymore. More Millennials now have jobs, but are still living at home. More