Deepwater Drilling Permitting Rate Still Way Below Average
Tina Korbe /
As gas prices continue to climb — reaching as high as $5.75 to $6.03 a gallon in some places — the Department of the Interior remains stingy with deepwater drilling permits.
Since February 2011, the administration has issued an average of just 1.3 deepwater permits per month — a 78 percent monthly reduction from the historical monthly average of 5.8 permits a month, according to the latest Gulf Permit Index from Greater New Orleans Inc.
The slow pace of permitting will likely eventually result in production declines — and that decrease in supply is unlikely to mitigate high gas prices.
Fortunately, for the first time in more than a year, the Interior Department has issued more shallow-water permits a month than the historical monthly average. For each of the past three months, the department has issued an average of 7.7 shallow-water permits — an increase from the historical monthly average of 7.1 permits per month.