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Bromwich on Offshore Drilling

Thursday, October 14, 2010 - 04:53

Michael Bromwich, director of the U.S. Interior's Bureau of Ocean Energy Management talks to Reuters Insider following his appearance at the 2010 Reuters Global Climate and Alternative Energy Summit.

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drilling. Let's let's explore how to implement this. We're joined by Michael Bromwich he has -- of the interior department's bureau of ocean energy management. He joins us from the Reuters global climate and alternative Simple answer is we don't know because we don't know. How many advances companies have been made in making and implementing the new. Rules that have been issued over the last couple of weeks. So we Okay Michael let's look at man power. Louisiana's lieutenant governor said that Eurasian -- way short people the process permit applications under those new guidelines. -- adequately -- to make every from every permitting process thanks lot for joining Michael. You're very welcome our thanks to Michael Bromwich of the bureau of energy management I'm Fred Katayama this is -- The Obama administration has lifted the moratorium on deep water drilling. Let's let's explore how to implement this. We're joined by Michael Bromwich he has -- of the interior department's bureau of ocean energy management. He joins us from the Reuters global climate and alternative energy summit in Washington. Welcome Michael how quickly can significant drilling bounced back to the levels it was before the -- Simple answer is we don't know because we don't know. How many advances companies have been made in making and implementing the new. Rules that have been issued over the last couple of weeks. So we won't know how quickly. The -- can move until. We actually get some applications in that fully comply with the new rules snowball our residents. I really can't I would have to call the company's find out how they're doing. And get their best estimates had a chance to do that. Nor have volunteered that information so the honest answer is I don't know all right now the industry face a new set of safety rules. But -- those rules delayed new drilling permits from being issues. They may I can't say that they won't -- new drilling permits from being issued. But we issued news -- those rules because we thought they were necessary. In order to enhance safety on the outer continental shelf. And respected deep water drilling. We're convinced that those new rules do exactly that it will take some at least modest amount of time for. Administrator you those rules and make sure that they've complied with them. Some additional time for them to put in drilling applications and then some additional time for us to review those applications. To make sure their compliance and also to inspect the deep water -- race. So there's no doubt it will take some time but we think it's worth it because. We will enhance safety if there are delays any idea what time -- we're talking we talked about weeks months years. No I don't think we're talking years certainly whether we're talking weeks or months really depends. On the pace at which the applications -- men. And again that's something we can't control and really can't can't accurately anticipate. All right well this thinking of the rules how concerned are you that. The new rules will cut down on US oil production. And they'll possibly the US more reliant on foreign oil. I don't think the new rules will substantially cut cut down and cut back on US oil production. Part of the rule making process is determined and that the benefits that -- the rules outweigh the costs so careful cost calculations are made in terms of the costs that the new rules imposed on industry. We think the costs are relatively modest compared to the enhancements in safety. We're getting for those rules. These rules are not coming isn't surprised industry most of them were telegraphed and secretary -- or may 27 report to the president. So I suspect that many of the companies had. Begun complying -- these rules even before the moratorium was lifted which would mean we would see their drilling applications even earlier. Okay Michael let's look at man power. Louisiana's lieutenant governor said that Eurasian -- way short people the process permit applications under those new guidelines. -- adequately -- to make every from every permitting process as efficient as possible. We need more people there's no question about that that's why. In the budget request for fiscal year 2011. Which began earlier this month. There is a request for a hundred million additional dollars. For a us to add personnel and equipment that primarily person now. That's votes to augment the number of people who do inspections on the -- to make sure that they're fully compliant. But also the people that we need to review process the applications. So we're doing the best with what we have currently but I think every one. Including lieutenant governor knows that we anymore and we look forward to. Assistance coming from all quarters to help us get those additional funds in the meantime though we have been reallocate. Personnel -- transfer a small number of people from our two other offices in the Pacific. And Alaska. But more importantly we have reallocate personnel within our Gulf of Mexico office. And added a total of twenty additional people. To the staff that reviews processes. Applications and so. We plan to keep that allocation. Where it has been in the last few days. In anticipation of new deep water drilling permits. And if necessary will certainly within the limits of our existing resources. Explore further allocations but we do definitely need the additional funds okay thanks lot for joining Michael. You're very welcome our thanks to Michael Bromwich of the bureau of energy management I'm Fred Katayama this is --

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Bromwich on Offshore Drilling

Thursday, October 14, 2010 - 04:53