Bromwich says 'quite confident' US close to issuing deepwater permits

Houston (Platts)--25Feb2011/539 pm EST/2239 GMT


The US is gearing up to resume permitting for deepwater oil and gas exploration, the top offshore regulator said Friday, after a hiatus in the wake of the BP Macondo disaster in the Gulf of Mexico last year.

US Bureau of Ocean Energy Management, Regulation and Enforcement Director Michael Bromwich told reporters in Houston that he is "quite confident" BOEM is getting close to a point where it can begin anew to issue deepwater permits.

Bromwich and US Interior Secretary Ken Salazar are visiting Houston to check on well containment systems being developed by industry.

During an airport press briefing before departing Houston, Salazar and Bromwich saluted the industry on its progress toward creating effective containment systems designed to limit damage from any future events like the Macondo well blowout of April 20.

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But neither official offered anything more definitive about the timing of approval for any new deepwater exploration drilling permits, which have been unavailable since the Macondo event while the government developed new regulations for the industry.

Bromwich did emphasize that his agency has approved 34 permits for drilling in shallow water since the Macondo blowout, which killed 11 workers and triggered the largest marine oil spill in US history.

"Today's visit reinforced what we have been learning, that the industry is working as hard as we are to ensure that offshore exploration continues in a safe way," Bromwich told reporters.

He said: "Industry is making good progress to contain blowouts in deepwater."

Citing the containment systems under development by Helix Energy Solutions and the Marine Well Containment Company, Bromwich said "both groups have made it clear these are works in progress."

He said: "They have developed a capability beyond what existed before, but they are not a stopping place."

Bromwich said he will be reviewing their progress on a quarterly basis.

Meanwhile, Salazar said the Obama administration will not "respond to political pressure" by rushing the process while "doing the right thing for the nation's energy program."

--Gary Taylor, gary_taylor@platts.com