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Obama Wars Title: Critics say moratorium on gulf oil drilling could increase risks rather than make process safer Critics say moratorium on gulf oil drilling could increase risks rather than make process safer By David Olinger and Mark Jaffe The Denver Post Posted: 06/21/2010 01:00:00 AM MDT Updated: 06/21/2010 07:15:26 AM MDT Jun 19: Gulf oil spill could lead to drop in global outputSalazar says BP capturing 25,000 barrels of oil dailyLewis: Professor finds fame after oil spill estimatesA six-month deep-water drilling moratorium imposed to protect the Gulf of Mexico may raise the risk of oil spills, some members of a U.S. Department of the Interior safety-advisory group warn. The moratorium is also raising concerns that the gulf's $124 billion offshore oil industry will suffer as 33 deep-water projects are on hold. The delay could imperil as many as 38,000 jobs related to the proj ects as rigs leave for work in other parts of the world, the National Ocean Industries Association, a trade group, estimates. The eight members of the 15-person advisory group who voiced concerns have been invited by Interior Secretary Ken Salazar to come to Washington this week to discuss the issue. "When you shut down the rigs, you lose experienced staff," said Ken Arnold, a petroleum engineer who is among those advising Interior on drilling safety. "They'll go overseas or leave the industry. It's hard to get them back," Arnold said. Arnold and three other members of the advisory group said in interviews they believe the drilling moratorium increases the risk of future oil spills. They say the offshore oil industry will have to hire less-experienced and less-capable workers as a result. They also say there is a risk in shutting down and re-entering deep-water wells, a risk that the moratorium will lead to the newest and most reliable drilling rigs leaving the gulf, and a risk of more tanker spills if domestic oil production declines. The moratorium, announced as a safety measure, "rather than safer is more risky," said Hans Juvkam-Wold, a retired petroleum-engineering professor at Texas A&M University. Supporters of the moratorium disagree. "I think they overlook the central fact that the pause the president has called for is a reasonable period of time" to establish safety rules "that help ensure we don't face this kind of disaster ever again," said El gie Holstein, a spill coordinator for the Environmental Defense Fund. Salazar said some people wanted offshore drilling completely stopped after the BP spill, while others wanted a green light for an industry that had safely drilled thousands of other wells in the gulf. Salazar said he and President Barack Obama chose instead to push "the pause button," halting deep-water projects until an investigation determines how the accident happened and why a fail-safe device, the blowout preventer, failed. In the meantime, "if there's a way we can adjust the moratorium" without sacrificing safety, "we will do that," Salazar said. Meanwhile, operators of semi-submersible deep-water rigs in the gulf are waiting to see whether there will be changes in the moratorium. "The rigs are called MODUs — mobile offshore drilling units. The first word is mobile," said Gary Krenek, chief financial officer of Houston- based Diamond Offshore Drilling Inc., the largest U.S. deep- sea driller. In addition to the six-month moratorium, the administration has extended to 90 days from 30 the time regulators have to review permit applications. "We are looking at nine months before our rigs can go to work," Krenek said. "In the meantime, we will look for work outside the United States." After the April 20 explosion sank the Deepwater Horizon rig that was drilling for BP and created a well breach that is spewing about 2 million gallons of oil daily, Obama asked Salazar to recommend better safety measures in 30 days. Fifteen experts — including engineers, professors and industry leaders — helped contribute to and review that report. While the safety recommendations are broadly supported, the moratorium — which Salazar said was his decision — has sparked objections. Eight members of the group protested that they neither reviewed nor approved of the blanket six-month moratorium. The Interior Department apologized but maintained that a moratorium is needed while the disaster is investigated and the spill remains uncontrolled. Ford Brett, another expert on the Interior review panel, questioned the moratorium's fairness to industries that have operated safely in the gulf. "How come they didn't shut down General Motors and Chrysler after Toyota's accelerator problems?" he asked. David Olinger: 303-954-1498 or dolinger@denverpost.com Mark Jaffe: 303-954-1912 or mjaffe@denverpost.com
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