Many expect Gulf oil production to soon exceed pre-spill levels

Two years after the White House lifted a moratorium on deepwater drilling in the wake of the BP oil spill, federal regulators have issued the most permits for new wells since 2007, The Times-Picayune reports, and many in the industry expect oil production in the Gulf of Mexico to soon exceed pre-spill levels. So far this year, the U.S. Bureau of Safety and Environmental Enforcement, which regulates offshore drilling, has issued 90 permits for new wells in waters deeper than 500 feet, according to the agency’s website. That’s more than were issued in the last two years combined, and more than the number issued in either of the two years before the 2008 spill. The last year more permits were issued was 2007, when regulators approved 106 new deepwater wells. Industry analysts and other experts say the resurgence is due to improved communication between oil companies and the government officials charged with keeping them in line. “There’s a better understanding of what regulators are looking for, and there’s a better understanding of what the operators and the industry can provide,” says Randall Luthi, president of the National Ocean Industries Association, a trade association representing the offshore energy industry. The full story can be found here.