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 16,401.15 49.77 0.30%
Nasdaq 4,750.99 1.01 0.02%
S&P 500 1,955.17 -16.23 -0.82%
Treasuries 2.17 -0.02 -1.14%
Data as of 3:14pm ET
Company Price Change % Change
Bank of America Corp... 15.96 0.11 0.69%
Apple Inc 110.85 -1.49 -1.33%
Freeport-McMoRan Inc... 10.14 0.23 2.37%
Intel Corp 29.15 0.55 1.92%
Netflix Inc 102.34 -3.10 -2.94%
Data as of 3:00pm ET
Sponsors

Sections

Americans are transforming how they eat -- paying more attention to the origins of their food and how it's made. And Kimbal Musk is at the forefront of a movement that is accelerating the rate of change. More

Pimco's famous fund once managed by star manager Bill Gross has less than $100 billion in management for the first time since 2007. More

The BauBax travel jacket, with 15 built-in features, needed $20,000 on Kickstarter, but got $9 million. More

Pimco's famous fund once managed by star manager Bill Gross has less than $100 billion in management for the first time since 2007. More