US extends offshore leases for deepwater drilling
The Obama administration recently extended nearly 1,400 deepwater oil and gas drilling leases in an effort to offset production delays caused by the 2010 Gulf of Mexico oil spill and the subsequent five-month ban on new offshore drilling.
The lease extensions of up to a year will help compensate offshore operators forced to idle production during the ban and also give them time to comply with new safety and environmental standards for deepwater drilling.
The US government approved nearly 98% of lease extension requests, or 1,381 leases, according to the Interior Department's Bureau of Safety and Environmental Enforcement. Some of the rejected extension requests were filed by sites where oil and gas production is ongoing.
The American Petroleum Institute (API) applauded the move as bringing "much-needed certainty for companies with ongoing operations." However, the API suggested that opportunities for offshore drilling must also be expanded.
"Extending these offshore leases is a good decision, supported by the need to increase production in the Gulf of Mexico and produce in other areas," noted API spokesman Reid Porter. "Looking ahead, energy security, US job creation and economic growth would all benefit from responsible offshore development in areas not yet opened."
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