President Barack Obama’s Oil Drilling Ban Sends a Rig to Egypt

Conservative and Oil Industry leaders have warn that the Obama Administration  moratorium on Oil Drill starting to take a toll on the industry. A Small driller is pulling out of the Gulf of Mexico and is heading to Egypt.

Diamond Offshore a small oil rig driller has announce that their rig Oceans endeavor is leaving Gulf of Mexico and is heading to Egypt.  The Diamond Offshore announcement is what many energy industry fear that  this is the first in a mass exodus of driller out of the Gulf because of the Obama Administration  moratorium on drilling.

Devon Energy leased the rig. Devon drilling in the same area of Gulf that BP was drilling  with Deepwater Horizon rig which blew up in April.

Burullus Gas Co of Cairo,Egypt has lease the Ocean Endeavor  until June 30th,2011.

From the Houston Chronicle:

Devon is one of three companies that has cited the deep-water drilling ban in trying to ease out of contracts to lease Diamond rigs. Diamond, a drilling company, said it expects to make about $100 million from the deal, including a $31 million early termination fee it recovered from Devon.

Larry Dickerson, CEO of Houston-based Diamond, signaled that other of his company’s rigs could be relocated, too.

“As a result of the uncertainties surrounding the offshore drilling moratorium, we are actively seeking international opportunities to keep our rigs fully employed,” Dickerson said. “We greatly regret the loss of U.S. jobs that will result from this rig relocation.”

Gulf Coast congressional leaders fears come true the announcement by Diamond Offshore: How many jobs will disappear as a result of oil drilling ban?

It was unclear how many U.S. jobs could leave with the Ocean Endeavor, but typically more than 100 workers are on the rig at any given time, doing everything from drilling to cooking meals. Onshore, a network of businesses supplies the rigs with groceries, equipment, uniforms and drilling materials.

“It’s not unusual for an energy service company to have 1,000 vendors that they buy from or purchase services from,” noted Rep. Kevin Brady, R-The Woodlands. As a result, Brady said, the economic damage from the moratorium stretches far and wide.”

Brady and other oil-patch lawmakers have been pressing President Barack Obama to end the six-month moratorium he imposed on 33 deep-water projects May 27 after the explosion of the Deepwater Horizon rig that was drilling a well for BP.

Houston Chronicle has the rest of the story.

Special Thanks to Doug Powers guest blogging at Michelle Malkin.

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