Obama has an Offshore Drill Moratorium, Chevron Drills in Canada
BPs Gulf Oil Spill has resulted in a Offshore Drilling Moratorium, Chevron drills its first offshore well ini Canadian waters.
Chevron drilled its first offshore drill in North America, despite a moratorium imposed by the Obama Administration. There was no press release, in fact there was barely an announcement. How did Chevron get around the moratorium? It drilled 260 km north east of St. John's, Newfoundland in Canadian waters.
How did this happen? It was simple, Premier Danny Williams, refused to give in to the paranoia of its Southern neighbour and waved the requirement for a second drilling ship in location that would have been available to drill a relief well in case of a disaster. Cost of such a ship would be $1/2 Million a day.
The Lona 0-55 well was started in May and was just completed it about a month ago. Danny Williams' motives were that the offshore wells will give generous royalties to the Newfoundland coffers, with eventual gas and oil development.
Chevron has not revealed what was found at Lona O-55.
The moratorium in the United States has cost thousands of jobs along the eastern seaboard. It has affected all businesses that rely on the oil industry and has generally caused devastation in the region. This coup by Premier Danny Williams can't be good news for the Obama Administration or Louisiana.
The well is in what’s called the Orphan Basin, which lies north of Hibernia (producing roughly 125,000 bpd), and Hebron, a field set to be developed with some 700 million barrels of recoverable heavy oil reserves.
A Chevron spokesperson explained that the company decided not to herald the drilling project because it didn’t want to attract attention to what’s a sensitive issue. Throughout the drilling Chevron took extra precautions to make sure all safety mechanisms (such as blowout preventers) were in reliable working order and that all pressures were carefully monitored. Still, it’s a good thing that drilling was completed before Hurricane Earl blasted the maritimes Sept. 1.