IADC Opposes Job, Industry-Killing Moratorium

HOUSTON, July 15 /PRNewswire/ -- The International Association of Drilling Contractors unequivocally opposes the 12 July 2010 suspension on deep-water drilling in the Gulf of Mexico. This blanket industrywide edict is contrary to precedent and abrogates lawfully offshore leases.

(Logo:  http://photos.prnewswire.com/prnh/20100709/DA32849LOGO)

(Logo:  http://www.newscom.com/cgi-bin/prnh/20100709/DA32849LOGO)

"In issuing this new moratorium, the Department of the Interior has chosen to ignore volumes of evidence regarding the industry's safe operating practices, as well as industry's exhaustively produced recommendations – made at DOI's request – for moving forward even more safely," said IADC President Dr. Lee Hunt.

The 12 July drilling suspension bars through 30 Nov. all offshore drilling using subsea blowout preventers (BOP), as well as with surface BOPs from floating facilities. Unlike the original moratorium, water depth is not referenced. A 22 June court ruling lifted the earlier moratorium. DOI indicates that the moratorium could end before 30 Nov.

Secretary of the Interior Ken Salazar does not dispute that wells can be drilled safely using accepted industry practices augmented with strengthened requirements. The DOI's concerns in the 12 July notice center on "blowout containment shortcomings" and "spill response capabilities that are strained by the BP oil spill."

"Prevention is the key to safety in drilling, whether offshore or land," Dr. Hunt said. "The industry's history of drilling 42,000 Gulf of Mexico wells over more than six decades prove that, when accepted practices are followed, the threat of spillage is minimal."

Drilling could safely resume through non-hydrocarbon-bearing strata with virtually no risk.

The continued moratorium threatens to ship overseas a high-tech industry providing well-paying jobs to people residing across the USA.  Further, companies across the nation provide goods and services for the offshore industry, as previously reported by IADC.

The continued moratorium will increase oil imports. While production is allowed to continue under the new moratorium, the cutback in drilling and the exodus of quality rigs portend falling production in the future. Once rigs are working outside the USA on long-term contracts, their return will be years away, if at all.

IADC encourages offshore producing companies to develop plans for spill response and oil containment that will satisfy DOI and result in an rapid end to the moratorium.

Visit www.IADC.org.

Editors & reporters: To review IADC's recent news releases on Macondo and other resources, please go to www.IADC.org/Offshore_GOM_Reform.

SOURCE International Association of Drilling Contractors