In a move aimed at boosting economic activity, the Obama administration has reopened the Gulf of Mexico to oil and gas drilling about six weeks ahead of schedule.

The Gulf had been closed to drilling after the April 20 explosion on BP's (BP) Deepwater Horizon rig that resulted in the worst oil spill in history , and the ban had been expected to lift Nov. 30. A federal inter-agency report last month estimated that 8,000 to 12,000 jobs would be lost because of the oil-drilling moratorium.

Companies that can meet more stringent safety requirements -- including demonstrating that they can contain the oil in case of a deepwater blowout -- can now restart drilling, Interior Secretary Ken Salazar said in a statement Tuesday.

"At this point we believe the strengthened safety measures we have implemented, along with improved spill response and blowout containment capabilities, have reduced risks to a point where operators who play by the rules and clear the higher bar can be allowed to resume," Salazar said in the statement. "The oil and gas industry will be operating under tighter rules, stronger oversight, and in a regulatory environment that will remain dynamic as we continue to build on the reforms we have already implemented."

The BP oil spill, which started with an explosion that killed 11 workers, leaked an estimated 53,000 barrels of oil per day until the company was able to cap it on July 15. BP took a second-quarter charge of $32.2 billion for the cleanup and other expenses relating to the accident.


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rm21904

Now, what do you think the price of oil be, contingent, with all the new reg's the obama administration has placed on gulf of mexico drilling rigges? How about $8.00 a gallion Gasoline.

October 12 2010 at 11:51 PM Report abuse +2 rate up rate down Reply
megamatt@california.usa.com

When china and india develop people will scramble toward alternatives because gas and oil will be super expensive. Those countrys have 1 billion people each if they develop there wouldn't be enough materials for everyone.Gas would probably be very expensive.If you look at the facts it is obvious that this is going to happen sooner or later. This isn't good if you work for an oil company. But it would probably help the environment if we move to solar and/or wind and/or biofuels.

October 12 2010 at 10:03 PM Report abuse rate up rate down Reply
megamatt@california.usa.com

When china and india develop people will scramble toward alternatives because gas and oil will be super expensive. Those countrys have 1 billion people each if they develop there wouldn't be enough materials for everyone.Gas would probably be very expensive.If you look at the facts it is obvious that this is going to happen sooner or later. This isn't good if you work for an oil company. But it would probably help the environment if we move to solar and/or wind and/or biofuels.

October 12 2010 at 10:03 PM Report abuse -1 rate up rate down Reply
frank1946

Too late now, big rigs are all gone ! This has cost the Gulf towns and cities millions in lost sales, tax and payrolls.................is BP paying for all this or is MMS or Obama ? I'm with the Federal Government and here to help YOU, what a sad commentary on how a difficult crisis can be made impossible !

October 12 2010 at 8:32 PM Report abuse +4 rate up rate down Reply
marine1942

You have it worng--it is NOT to boost the economy, it is to boost the falling approval rating Obama and his dems have. Won't work !!!

October 12 2010 at 8:27 PM Report abuse +5 rate up rate down Reply