Drilling Moratorium Lifted (Partially) – Boosting a Few Names

October 13, 2010 10:13 am

The Obama administration lifted (partially with caveats) the drilling ban and many companies within the sector got a nice boost. We own TransOcean (RIG) for Horowitz & Company clients and are looking at Atwood (ATW) as well.

From MSNBC.com

The Obama administration on Tuesday lifted the moratorium on deepwater exploratory oil drilling in the Gulf of Mexico — provided companies follow new safety rules.

“Operators who play by the rules and clear the higher bar can be allowed to resume” drilling, Interior Secretary Ken Salazar said at a news conference.

The Obama administration on Tuesday lifted the moratorium on deepwater exploratory oil drilling in the Gulf of Mexico — provided companies follow new safety rules.

“Operators who play by the rules and clear the higher bar can be allowed to resume” drilling, Interior Secretary Ken Salazar said at a news conference.

“We’re still in the dark,” said Hornbeck, who heads up one of the companies that sued to block Interior’s initial moratorium. His company provides vessels and other services for the offshore industry.

“The devil is in the details, as they say, and the industry hasn’t seen the final requirements for what we would have to do to be able to actually get a permit issued,” he added. “Until that is done, lifting the moratorium may be just a moot or perfunctory act. … Right now, I’m skeptical that it will be anytime soon that permits will be issued even if the moratorium is lifted.”

Michael Bromwich, head of Interior’s Bureau of Ocean Energy Management, said it would take “at least a couple of weeks” before permits are approved.

The administration has said the moratorium was necessary to ensure safety after the April 20 blowout of BP’s Deepwater Horizon well.

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