Hold the Applause for End of Drilling Banhttp://www.fool.com/investing/general/2010/10/13/hold-the-applause-for-end-of-drilling-ban.aspx Travis Hoium
October 13, 2010
Drill, baby, drill! The Obama administration has lifted the ban on deepwater oil and gas drilling in the Gulf of Mexico. Drilling stocks were significantly higher yesterday in hopes that demand will pick up, but let's not get too excited just yet.
Deepwater drillers Ensco (NYSE: ESV ) , Noble (NYSE: NE ) , and Diamond Offshore (NYSE: DO ) all moved higher on the news, but it could be awhile until we see new business materialize. Interior Secretary Ken Salazar announced additional new rules including safety regulations, adding uncertainty to the amount of time and energy it will take to meet the new guidelines.
Industry members are skeptical that the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) can proces