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There’s optimism,” said Ken Wells, president, Offshore Marine Services

Association (OMSA) said of future in- creased shelf activity. “I don’t know if we’re far enough into it yet to know what impact it will have. One of the reasons that activity hasn’t happened as aggressively yet is restricted access to capital. As we see better access a lot of things could begin to move.”

Movement could begin with Presi- dent Obama’s announcementto reverse bans on drilling in the eastern Gulf of

Mexico, along the southern Atlantic coastline and a part of Alaska.

More positive news from Washington could ease uncertainty among decision makers leery to invest in an industry, which had previously received few sig- nals from the Administration and had to deal with perceived threats, such as cap-and-trade legislation. Some offi- cials remain skeptical, however. “It’s a frustration all of us share,” said Joe

Bennett, Executive VP and Chief In- vestor Relations Officer, Tidewater Inc. “How long have we heard this story and what has happened to encourage more drilling in the United States?

Nothing. Nothing new is happening.

It’s frustrating to know the opportuni- ties are there and the industry cannot take advantage of them.”

Following the announcement, Ben- nett told the (New Orleans) Times-

Picayune Tidewater “hopes (expanded offshore drilling) does come to pass.

We’ll be well-positioned if it does.”

OMSA also indicated its support for the President’s plan stating: “This will help America achieve energy inde- pendence and create jobs at the same time.” However, some lawmakers re- main doubtful of the plan, which still must clear Congressional hurdles. “As a big advocate of increasing off- shore drilling and lease sales, I hope this is a good faith effort on the part of the President,” said U.S. Sen. David

Vitter, R-La. “But those lease sales could still be torpedoed in the courts by environmental lawsuits unless we change regulations to expedite the drilling process.”

Interior Secretary Ken Salazar plugged the President’s announcement during a visit to Superior Energy Serv- ices in Gretna, La., announcing an ex- pedited lease sale of 18 million acres in the Gulf of Mexico on Aug. 18. The

August sale territory is located from nine miles to 250 miles offshore in depths ranging from 16 feet to more than two miles. Interior officials esti- mate the region could produce 423 million barrels of oil and 2.64 trillion cubic feet of natural gas. Also, Salazar indicated the Interior plans four more

Gulf lease sales by 2012 in areas already approved for exploration.

Areas included in the President’s plan to expand exploration will require a vote of Congress to drop the morato- rium that currently blocks drilling through 2022. — Matt Gresham

April 2010 www.marinelink.com 7

Optimism, Skepticism Greet Administrations plan for

Expanded Offshore Drilling