Government Policies Have Consequences

Yesterday the Washington Post posted an opinion piece by Randy Stilley, president and chief executive of Seahawk Drilling, which owned and operated 20 jackup rigs in the Gulf of Mexico.  Last month Seahawk Drilling declared Chapter 11 Bankruptcy.  Seahawk will sell its assets to shallow-water driller Hercules Offshore.

Mr. Stilley reports:

“This devastating decision was the culmination of a long period in which we found our customers unable to secure permits for work in the Gulf of Mexico despite the fact that both our industry and our company have excellent safety records. In the 11 months after the Deepwater Horizon accident, it became clear that Seahawk’s greatest rival was no longer our industry competitors but the U.S. government.”

Mr. Stilley further comments:

“Our government cannot claim in good conscience to hold up shallow-water permits out of an abundance of caution. The shallow-water industry relies on proven and straightforward methods honed over decades of use. Our record speaks for itself: In the past 15 years, 11,070 shallow-water wells have been drilled in the Gulf of Mexico, with a grand total of 15 barrels of oil spilled as a result of well-control incidents.”

The Obama Administration is driving the American oil industry out of the Gulf of Mexico while President Obama is supporting offshore drilling in Brazil.  Reuters reported Saturday:

“The United States seeks to be “a strategic energy partner” to Brazil, which recently discovered major new offshore oil reserves. Obama said the United States wants to be one of Brazil’s “best customers” when the oil starts flowing.

“Both nations also will increase cooperation on producing biofuels with a specific separate agreement to team up on developing biofuels for aviation.”

My prayer is that the Republicans run a good candidate in 2012 and we can undo some of the damage President Obama is doing to American businesses and the American economy,