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According to recent estimates about a third of the shallow water drilling fleet has been benched.
By the White House is drilling -- moratorium.
Could the moratorium not only cost thousands their jobs -- cripple.
The golf economy let's ask John ring the president ups and CEO.
Of Hercules drilling and -- -- he's the president and CEO of -- energy both companies.
Are shallow water drillers thanks gentlemen -- we've heard the deep water deep water horizon.
Explosion accident we heard about the moratorium on deep water.
-- permits but shallow water permits are being affected as well let me start with you John -- story what's the latest on it.
Well more power shallow water drilling was -- -- -- -- -- -- and since then we've had.
Approximately about seventeen permits.
To let through shallow water Jack up -- on the Gulf of Mexico and have a fleet of about 48 -- cuts currently at each having your throat.
That's about a third fleet now -- bottle waiting on permits.
And by the end of August we have tonight with no new -- about almost 10% of the current active fleet will be -- in the Gulf of Mexico.
And -- that that's concerning because that's quite a bit of that's what number ones it's a number of jobs -- also quite a bit of oil that we may be accessing that rights are.
Well so I just -- lot of natural gas as well it's certainly a number of jobs if you think about it typical drilling really you know it's about a hundred direct jobs on the tree.
And we probably lost somewhere over 2000 jobs already because -- don't -- permits for the trees drew right now.
What is the reason for the moratorium or at least a lack of approving these permits.
Well you know officially there is no moratorium -- -- -- drilling that the administration and department of interior.
Bureau of ocean energy all realize that show what it really is inherently slave.
And it thank you look back over the past fifteen years we've only had fifteen will control.
After drilling approximately 111000 well.
In those fifteen advance.
Which should be -- what you have right now this blow we've always Italy held fifteen girls rule fifteen years.
Okay John let's talk -- -- about this a little bit -- put together group I guess a few CEOs.
Who said patent why don't we why are we under this same kind of I mean it -- -- an official moratorium.
Some sort of moratorium at least some sort of slow down and in -- -- permit approval why are you have you gotten any any answers from the White House.
Yes we've had good conversations and good meetings with a the of the Interior Department and and and just as recently as Friday had a very successful first detonating.
With the bureau of offshore energy management in trying to rectify and clarify we had a good first steps on Friday and hopefully we're making progress to get these.
Very dedicated workforce back to work in the beginning to -- Lined up on wells to -- -- Randy interior secretary Ken Salazar is meeting with I guess the commission that was put together.
Regarding the deep water horizon spill.
This is the guy who you have to go to and say hey we want these permits will want to push it through he's asking that commission whether deep water drilling is safe now.
He's going to make a decision on whether shallow water drilling safe as well.
The secretary on numerous occasions.
Has reiterated that he believed shallow water drilling is safe and there's no moratorium there.
The problem we have is just bureaucratic delays.
And issues with understanding of the new regulations that they've implemented over the past two months.
And it's made it very difficult for our customers -- gas companies that we work for to obtain permits to building wealth in fact there's only been.
One permit for a new well to be drilled.
In the past two months and John you shaking your head you agree that they understand it's it's safe but.
Yet it it still isn't the way to get a permit pro.
Yes as Randy said I mean that we're working through the process and if you look at just a number of Jack ups.
Operating in the gulf we're poised to operate in the gulf and only one -- -- -- that's why we.
As you said in your intro about a third of the fleet is currently idle and -- an earlier we're we're about to run and about eighty portion -- -- -- being -- John Cochran you -- job loss.
Aren't you ticked off towards the outrage where is -- you you coming on camera saying -- Let's get this thing over what what's the -- -- when we are a little upset and they really it's more upset that the job loss and the impact and it's specifically the Louisiana economy that this is.
There are ready suffering.
Very deep economic loss because of -- when -- this is a double down effect by taking them one chance of a lot of an up and down the coast.
And we just saw this morning did you and jobless rate came out a 125000.
Then there's no sense we've -- -- Randy said over the last sixty years we've drilled almost 50000 wells and we've had -- -- Grand -- fifteen Merrill take you take a -- -- from where John leaves off are you upset because I'm upset because you're here I've fallen while for 23 years and this looks certainly like.
Someone the White House saying hey we're gonna slow down these -- permit approval process he's.
Making sure that these -- They may take it one step further and say you know what we're not gonna prove the -- permits the way we -- are you upset are you worried that that could affect.
Your livelihood your jobs the Gulf Coast Texas Louisiana everyone along the gulf.
-- Yeah I'm definitely upset and I think you're -- -- it is it's already starting to affect our business.
It's it's having an impact of our employees and the people that support our business and jobs all the Gulf Coast.
You know we did have a serious accident -- -- -- that we all understand that but to just have a blanket situation where you say okay.
We're gonna slow -- drilling we're gonna stop drilling in deep water -- slow it down and shallow water it's unnecessary we didn't have an incident in shallow water.
We shouldn't be penalized for that are we have to leave their job and -- -- -- thanks -- luck as you come back and let us know.
When those permits -- approvingly of I appreciate it thank you.
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