The US upstream industry is somewhat disappointed with the government’s decision to enforce a six-month moratorium on offshore drilling.
Imposed in the wake of the fatal blowout which sunk Transocean’s Deepwater Horizon, the Obama administration has banned offshore drilling in water depths of more than 500 feet, bringing new projects to a standstill in one of the world's busiest oil and gas regions.
The now-defunct federal agency, MMS, in its most proactive form, ordered a pause on deepwater drilling to get things right as it called for stricter safety regulations.
While rig contracts are being cancelled due to the incident, pro-oil Texas, home of the US oil industry, criticised the decision. Even the next of kin of the Deepwater Horizon crew who perished in the tragedy, urged that this is not the way to go.
Considering the ban, will the Texas economy crumble as the next disaster?
As drillers and the government take each other on, the battle rages - this time in US courtrooms.
Subscribe to this comment's feed
