Regal Group International: Analysts foresee further delays after U.S. offshore drilling ban ends.

Sept. 22, 2010 - PRLog -- Prior to BP’s deep water Macondo oil leak, which saw millions of barrels of crude spill into the Gulf of Mexico, Regal Group International’s research shows that U.S. regulators were approving around a dozen permits a month for drilling in the shallow waters off the Gulf. Even though the 6 month moratorium only affected deep water drilling, it seems that the authorities are now barely managing to approve one permit a month.

With less than two months of the moratorium remaining before operators will be allowed to resume drilling in what is felt to be one of the most prospective oil regions on the globe there are rising concerns that the more wary regulators may now stifle investment for months longer.


"The shallow-water story is a template for the way deepwater drilling can unfortunately go," Jim Noe, senior vice president at Hercules Offshore Inc told Regal Group International sources.

The majority of the Gulf’s untapped reserves lie in waters deeper that 500 feet and key players believe that U.S. crude production and corporate profits for deep water drillers will shrink significantly if longer waiting periods for authorization permits are applied.

Many of the Gulf’s drilling firms including Chevron, Royal Dutch Shell and Nobel Energy have already postponed projects as a result of the moratorium. Nobel does not expect to restart its exploration program in the gulf until late 2011 the firms CEO told Regal Group International recently.

In the first quarter of 2010 the U.S. authorities gave the go-ahead to 32 new shallow water wells, an average of 11 per month. Since the April oil leak the government has approved only six new wells Regal Group International’s research revealed, as the regulator seeks to ensure that tough new standards are stringently adhered to.

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