Deepwater permit issuance continues downward trend

The issuance rate for new deepwater well permits continues to lag historical averages, while new shallow-water well permits are on the rise, according to a report released by Greater New Orleans Inc. Just four deepwater permits have been issued per month since August, representing a 31% monthly decrease from the 5.8 permit average seen in the year prior to the April 2010 oil spill. It’s a 43% decrease from the historical average of seven permits per month over the past three years. Shallow-water permit issuance is slightly above the three-month trailing average but still falls short of the historical average. Since August 2011, 7.3 shallow-water permits were issued on average. That’s a 3% increase from the monthly average of 7.1 permits per month observed in the year prior to the oil spill. However, it’s a 50% reduction from the historical average of 14.7 permits per month over the past three years. The report also shows a sharp increase in the average number of days taken to approve plans and a significant decrease in the percentage of plans being approved, compared with the number of plans submitted to the Bureau of Ocean Energy Management, Regulation and Enforcement. In 2011, the average approval time for a plan has been 115 days, compared to the historical average of 61 days. Additionally, in 2011, 37% of plans submitted to BOEMRE are being approved, compared to the historical 73.4% approval rate.