WINDERMERE, Florida (Stockpickr) -- The Obama administration on Tuesday ended the moratorium on offshore drilling in the Gulf of Mexico seven weeks early, after coming under pressure from the oil industry. This was welcome to news to many of the offshore drilling companies that operate in the Gulf. Many of these companies can now return to business as normal and restart their Gulf operations.
The drilling moratorium was put into effect after the Deepwater Horizon drilling rig exploded last April, killing 11 people and causing the largest oil spill in U.S. history.
The administration has said that new rules should help to prevent a similar accident in the future. Some of those new rules include new standards for equipment that must be inspected and certified by an independent engineer. Another rule requires offshore drillers to develop comprehensive workplace safety plans.
Under the new guidelines, an offshore driller must have their CEO certify that any rig that is going to operate in the Gulf must meet all of the new and existing rules. Offshore drilling operations will not be allowed to start until this step taken.>>Also: 4 Safest Oil & Gas Stocks Hopefully these new rules and guidelines will help to prevent a future tragedy like the one we saw in April. I think it's safe to say that nobody wins from a tragic oil spill -- not the oil companies, not the local communities and not the political powers. Not all offshore drillers are jumping up and down about this news. The National Ocean Industries Association released a statement that said: "Our companies remain doubtful that this announcement is anything more than symbolic until permits are actually issued for new drilling." Michael Bromwich, director of the Bureau of Ocean Energy, said that permits for renewed deep-water drilling are likely to be issued before the end of the year.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV