US Churning Out Deepwater Permits Like It’s 2009

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September 21, 2011

(Dow Jones) US offshore regulators are issuing deepwater drilling permits under new regulations like it was 2009–before the disastrous oil spill in the US Gulf of Mexico, fostering optimism among oil companies, say analysts with Simmons & Co.

Annualized rate for new well permits seen in the third quarter of 2011 is on par with the rate seen in 2009, and exceeds that of 2008; if sustained, that could mean three new rigs per quarter in the region over the next couple of quarters, Simmons analysts say.

“That being said, the present outlook for the deepwater GOM is unquestionably better than most would have envisioned 6 or 12 months ago,” the Simmons note says.

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