BHP Billiton Receives Second Deepwater Drilling Permit

The federal government recently issued its second deepwater drilling permit for the Gulf of Mexico, since the catastrophic explosion onboard the Deepwater Horizon that claimed the lives of 11 maritime workers on April 20, 2010. The permit was approved on Friday, March 11, 2011, and issued to BHP Billiton.

The permit will allow BHP Billiton to resume drilling on its Shenzi facility, which is located approximately 120 miles south of Houma, Louisiana. The permit is the second deepwater drilling one to be issued by federal regulators, since the Interior Department issued deepwater moratoriums last summer in response to the BP incident. The first permit was issued to Noble Energy Inc.

“We are pleased to be resuming work,” said BHP Billiton spokesperson Ruban Yogarajah.

House Republicans have called for a series of hearings to commence this week to examine deepwater drilling permits in the Gulf of Mexico. The hearings, in part, are designed to highlight a recent report issued by the Congressional Research Service, which suggests that the United States holds the world’s largest recoverable resources of oil, natural gas and coal.

Critics have slammed President Obama citing that the administration has blocked access to oil and gas resources in the Gulf. The president defended his position and indicated that oil production was at an “all-time high.”

“People deserve to know that the energy they depend on is being developed in a timely manner,” Obama said.

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