First deep water rig leaves gulf...headed to Egypt

[CosmicCowboy]

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First rig sails away over drilling ban
Lawmakers and experts fear loss is only the start of offshore exodus
By JENNIFER A. DLOUHY
WASHINGTON BUREAU
July 9, 2010, 8:28PM

WASHINGTON — Diamond Offshore announced Friday that its Ocean Endeavor drilling rig will leave the Gulf of Mexico and move to Egyptian waters immediately — making it the first to abandon the United States in the wake of the BP oil spill and a ban on deep-water drilling.

And the Ocean Endeavor's exodus probably won't be the last, according to oil industry officials and Gulf Coast leaders who warn that other companies eager to find work for the now-idled rigs are considering moving them outside the U.S.

Devon Energy Corp. had been leasing the Endeavor to drill in the same region of the Gulf as BP's leaking Macondo well, which has been gushing crude since a lethal blowout April 20.

But Diamond announced Friday it will lease the rig through June 30, 2011, to Cairo-based Burullus Gas Co., which plans to send the Endeavor to Egyptian waters immediately.

Devon is one of three companies that has cited the deep-water drilling ban in trying to ease out of contracts to lease Diamond rigs. Diamond, a drilling company, said it expects to make about $100 million from the deal, including a $31 million early termination fee it recovered from Devon.

Larry erson, CEO of Houston-based Diamond, signaled that other of his company's rigs could be relocated, too.

"As a result of the uncertainties surrounding the offshore drilling moratorium, we are actively seeking international opportunities to keep our rigs fully employed," erson said. "We greatly regret the loss of U.S. jobs that will result from this rig relocation."

It was unclear how many U.S. jobs could leave with the Ocean Endeavor, but typically more than 100 workers are on the rig at any given time, doing everything from drilling to cooking meals. Onshore, a network of businesses supplies the rigs with groceries, equipment, uniforms and drilling materials.

"It's not unusual for an energy service company to have 1,000 vendors that they buy from or purchase services from," noted Rep. Kevin Brady, R-The Woodlands. As a result, Brady said, the economic damage from the moratorium stretches far and wide.

Brady and other oil-patch lawmakers have been pressing President Barack Obama to end the six-month moratorium he imposed on 33 deep-water projects May 27 after the explosion of the Deepwater Horizon rig that was drilling a well for BP.

Obama said the ban was needed to allow time for new safety standards to be implemented and a commission to investigate the cause of the April 20 blowout at BP's Macondo well.

Although the administration on Thursday lost its second bid to keep the ban in place while it appeals a federal court's decision to strike down the moratorium, federal regulators plan to try again with a revised version soon.

Dan Pickering, a financial analyst with Tudor, Pickering Holt & Co. Securities, said the legal uncertainties surrounding the ban - and the administration's plan to issue a new, revised moratorium - ensure that no companies will resume deep-water drilling in U.S. waters anytime soon.

"Are you really going to spend $5 million … getting ready to drill a well that someone would then probably block you from drilling?" Pickering said.
Lawmakers complain

Pickering added that prospects are high that a dozen rigs ultimately could leave the Gulf of Mexico because of the ban.

Brady said the rig owners are searching for revenue - even if it means relocating to get it.

"There are two types of rigs in the deep-water Gulf today: those that are leaving the country and those that want to, because with this moratorium hanging over their heads, they simply can't go back to work," Brady said. "I'm afraid this is the first of many rigs and many American jobs to leave the Gulf."

Once the rigs relocate, it could be a minimum of five to 10 years before they return, predicted Rep. Pete Olson, R-Sugar Land.

"We cannot afford to lose these jobs or the energy they provide," Olson said. "President Obama should allow this moratorium to remain lifted and let Americans get back to work."

During trading Friday, Diamond Offshore stock fell 86 cents - or 1.32 percent - to close at $64.40. It has fallen 29 percent from its closing price of $91.20 on April 20, the day the Deepwater Horizon exploded.

[boutons_deux]

The oilcos have nobody but to blame but themselves.

The hearings exposed them as cheaters on human safety, pollution, oil spill tactics, while pocketing 10s of $Bs in PROFITS every year. They have clearly figured fines, deaths, pollution are just a cost of doing business, just like BigPharma figures deaths and maiming of their clients and fines are just a cost of doing business.

sympathy for oilman jobs lost? How many 1000s of jobs have been lost on the Gulf Coast because their employers are negligent, greedy s?

[balli]

Good. Hopefully there's an all out exodus and you can spend twice as much to fill up your trucks and fleet of ATVs, CC. That, or start taking out the electronic golf carts you maliciously leeched from federal taxpayers in the name of selfishly and purposefully exploiting an unintentional loophole.

[CosmicCowboy]

Good. Hopefully there's an all out exodus and you can spend twice as much to fill up your trucks and fleet of ATVs, CC. That, or start taking out the electronic golf carts you maliciously leeched from federal taxpayers in the name of selfishly and purposefully exploiting an unintentional loophole.

Do I detect a little class envy?

[balli]

I don't envy piles of encased in sacks of barely human skin. See, unlike you, some of us don't worship money and ourselves.

[CosmicCowboy]

The oilcos have nobody but to blame but themselves.

The hearings exposed them as cheaters on human safety, pollution, oil spill tactics, while pocketing 10s of $Bs in PROFITS every year. They have clearly figured fines, deaths, pollution are just a cost of doing business, just like BigPharma figures deaths and maiming of their clients and fines are just a cost of doing business.

sympathy for oilman jobs lost? How many 1000s of jobs have been lost on the Gulf Coast because their employers are negligent, greedy s?

The oil companies will still deep ocean drill. They will still hire people, produce oil, and make those *gasp* PROFITS you find so abhorrent.

They just won't do it here and tens of thousands if not hundreds of thousands of Americans will soon be unemployed, lose their houses, etc. not because of anything they did, but rather something the US Government did to them.

[CosmicCowboy]

I don't envy piles of encased in sacks of barely human skin. See, unlike you, some of us don't worship money and ourselves.

You are hilarious.

[SnakeBoy]

I don't envy piles of encased in sacks of barely human skin. See, unlike you, some of us don't worship money and ourselves.

What religion are you?

[balli]

What religion are you?

Um... I believe in things other than the so-called prosperity gospel and/or trying to belittle people who I blindly assume are in a lower socio-economic strata than myself.

[CosmicCowboy]

Um... I believe in things other than the so-called prosperity gospel and/or trying to belittle people who I blindly assume are in a lower socio-economic strata than myself.

Translation:

I don't know what I think about religion and I still live with my parents.

[balli]

Whatever. You don't know a ing thing about me cc. I know more about and have invested more in my Christianity than you have in whatever self-en led bull you subscribe to. And I don't live with my parents. And I'm college educated and get paid accordingly. And yes, I come from vast family wealth. And yes, I could, like you do on the regular, lay out a long list of nice things I own. And like you, on the regular, could lay out a long list of reasons why I think I deserve even more. But I won't, because unlike you, I don't measure myself or my worth (or other peoples') by the size of my paycheck or inheritance.

Translation:

I'm not an greedy, soulless, en led, prideful sack of .

[balli]

But go ahead: keep trying to discount what a ty human and American you are by letting everyone know you make more cash than I do. It's so big of you and so fundamentally counter-productive to what you're trying to accomplish for your lowly ass, kickin' wanna-be elitist self.

[ChumpDumper]

Wow. 12 rigs might leave?

Could you point out which ones on this map?

[CosmicCowboy]

Wow. 12 rigs might leave?

Could you point out which ones on this map?

I presume you know the difference between a DRILLING rig and a PRODUCTION rig don't you?

I do.

[spursncowboys]

Your lucky if chump knows what rig means.

[CosmicCowboy]

Whatever. You don't know a ing thing about me cc. I know more about and have invested more in my Christianity than you have in whatever self-en led bull you subscribe to. And I don't live with my parents. And I'm college educated and get paid accordingly. And yes, I come from vast family wealth. And yes, I could, like you do on the regular, lay out a long list of nice things I own. And like you, on the regular, could lay out a long list of reasons why I think I deserve even more. But I won't, because unlike you, I don't measure myself or my worth (or other peoples') by the size of my paycheck or inheritance.

Translation:

I'm not an greedy, soulless, en led, prideful sack of .

So take THAT, !

[spursncowboys]

Whatever. You don't know a ing thing about me cc. I know more about and have invested more in my Christianity than you have in whatever self-en led bull you subscribe to. And I don't live with my parents. And I'm college educated and get paid accordingly. And yes, I come from vast family wealth. And yes, I could, like you do on the regular, lay out a long list of nice things I own. And like you, on the regular, could lay out a long list of reasons why I think I deserve even more. But I won't, because unlike you, I don't measure myself or my worth (or other peoples') by the size of my paycheck or inheritance.

Translation:

I'm not an greedy, soulless, en led, prideful sack of .

how much of your nice things do you give away?

[ChumpDumper]

I presume you know the difference between a DRILLING rig and a PRODUCTION rig don't you?

I do.

So these drilling rigs aren't even producing?

Wow.

It's even less bad in that case.

Surely you know how much of a decrease this will cause in the worldwide production of oil.

Tell us.

[MannyIsGod]

Is the rig larger than the Superdome?

[Nbadan]

....drilling rigs are leaving the GulF..... that....Gulf Oil is leaving the Gulf.....

[Nbadan]

A majority of Americans are against off-shore drilling...

According to a just released poll by Rasmussen published at Enviroknow, it appears that Republican voters have now moved left, tipping the nation’s majority against off-shore oil drilling. Pre-disaster, only 31% of Republicans were concerned or somewhat concerned, so along with the 70% of Democrats who were concerned it was a wash. But now that 50% of Republicans say that they are very or somewhat concerned, the nation’s tipping point is reached. (Democrats concern has grown to 84%.)

As of two months into this disaster, more than half of all Americans are now against drilling for off-shore oil.

But this month, Republican Senators plan to (once more) filibuster legislation to end our dependence on dirty energy.

What is more, of this Republican group of likely voters surveyed, almost all of them said they were following the ‘offshore drilling incident’ closely – 93%. This means it really has their attention, because if they didn’t care, they wouldn’t be following it closely. They do see what is happening. If they are following it, then they are beginning to understand the implications of fossil energy dependence.

This is in marked contrast to the Republican response to science and climate change, where the response to an even more catastrophic danger has been to put their fingers in their ears and see nothing, there is no global warming, it’s all a hoax, Al Gore, scientists are just in it for the money or whatever.

Link

[ElNono]

Are they returning the government subsidies before leaving?

[boutons_deux]

"tens of thousands if not hundreds of thousands of Americans will soon be unemployed,"

scaremonger much?

How much oil is being produced in the 5000+ gulf wells now?

How much of break do US oil consumers get for oil produced on their lands and waters?

The oilcos are free to drill in deep US waters if they can prove they are serious about employee safety and blowout precautions and reactions.

Until then, 'em.

Some fish stocks never came back to those waters after the Exxon Valdez spill. and the place still stinks. Exxon fought 20 years and won not to pay up, and the courts let them off. Exxon, the courts.

[Wild Cobra]

The oil companies will still deep ocean drill. They will still hire people, produce oil, and make those *gasp* PROFITS you find so abhorrent.

They just won't do it here and tens of thousands if not hundreds of thousands of Americans will soon be unemployed, lose their houses, etc. not because of anything they did, but rather something the US Government did to them.

True...

But liberals are not responsible for their agenda or actions.

It's Bush's fault.

[Wild Cobra]

I presume you know the difference between a DRILLING rig and a PRODUCTION rig don't you?

I do.

No he doesn't. He's just being a chump again, trying to stir things up while jacking off.