Noble Energy Inc., Secures First US Deep-Water Drilling Permit Since BP Spill


Monday, February 28th, 2011
News

Today the Noble Energy company secured the first US deep-water oil-drilling permit to drill in the Gulf of Mexico since the BP oil disaster, which took place nearly 10 months ago. Regulators have signaled they will approve more applications in the near future. The Houston-based oil drilling company is the first company to meet the new requirements from the Bureau of Ocean Energy Management, Regulation, and Enforcement under the Department of Interior.

The restrictions applied to new safety measures for well design, casting, and cementing according to an article from Bloomberg. The ruling from a Federal judge earlier this month urged the regulators to begin approving applications for both shallow water and deep water drilling on the basis of the slowing economy in the Gulf region.

The approval afforded by the Bureau of Ocean Energy Management, Regulation, and Enforcement is a signal to operators, producers, and service companies in the oil industry that the winds are about to change for this sector and that they are on the cusp of being able to hire back workers for the energy market.

Noble’s stock has risen by $3.47 on the news, or roughly 3.9 percent. This is the biggest increase posted since January 31 and the highest price since the Summer of 2008.

The improvements made by the company include a containment system developed by Helix Energy Solutions Group Inc., which contains explosion in this case. This was also the company that responded to the BP explosion by providing support in the form of vessels that could collect nearly 10,000 barrels of oil per day and cap a well located 5,600 feed below the surface. Noble intends to build upon the framework already afforded by this company’s system in order to drill at 6,500 feet of water.

Sources:

http://www.bloomberg.com/news/2011-02-28/first-gulf-of-mexico-deepwater-drilling-since-bp-spill-is-approved-by-u-s-.html

http://online.wsj.com/article/SB10001424052748704615504576172811891634634.html

http://www.nytimes.com/2011/03/01/business/energy-environment/01drill.html?partner=rss&emc=rss

 



Article by Andrew Timm

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: bp , deep-water drilling , department of the interior , noble , oil , oil spill , permit

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