Shallow Water Drillers Left Out of BOEM Lease Extensions

HOUSTON, June 17, 2011 /PRNewswire-USNewswire/ -- Jim Noe, Executive Director of the Shallow Water Energy Security Coalition, issued the following statement regarding BOEM's decision to extend leases for deepwater but not shallow water operations in the Gulf of Mexico:

"Yesterday's announcement by the BOEM may provide long-sought relief to owners of deepwater leases affected by the moratorium.  However, the Administration's initiative effectively makes a distinction without a difference.  The deepwater lease extension fails to recognize that shallow-water operators have been subjected to delays every bit as pernicious as those caused by an official moratorium.  

"Shallow water permits remain more than 60 percent below their pre-Macondo levels, and permit approvals take twice as long on average. As a result of the de facto shallow water moratorium, there are hundreds of shallow water leases on which there was no production over the past year. There is simply no basis in law or policy to treat deepwater and shallow water leases differently.

"263 Members of Congress have agreed that the smarter public policy position is to extend leases across the board regardless of the water depth of the specific operation.

"America deserves a firm commitment to energy security that safely taps our offshore resources as completely as possible."

About the Shallow Water Energy Security Coalition

The Shallow Water Energy Security Coalition comprises a group of companies—Apache Corporation, Arena Offshore, Chevron, Delta Towing, Dynamic Offshore Resources, Energy XXI, Ensco, Hall-Houston Exploration, Hercules Offshore, Phoenix Exploration, Rowan Companies, Seahawk Drilling, W&T Offshore, and Walter Oil & Gas— that explore, develop and drill for natural gas and oil in the shallow waters of the Gulf of Mexico.  The coalition was established to enhance the understanding of shallow-water operations as policymakers develop legislative and regulatory responses to recent events. Follow us on Twitter @ShallowWaterNRG

SOURCE Shallow Water Energy Security Coalition