Left Behind: BP's Big Oil Rivals Jump Back Into the Gulf of Mexico
Big Oil -- with large independent companies close behind -- is jumping back into exploration in the Gulf of Mexico's deep waters. That is, everyone except BP, which has been forced to sit on the sidelines as investigations into its role in the oil spill earlier this year continue and drawn out legal proceedings loom in the future.
It's too early to say whether BP will be left behind for good. The Interior Department lifted its moratorium on deepwater drilling just two weeks ago. Oil companies are worried that even though the federal agency is accepting new drilling permit applications, exploration projects will get delayed by regulators. Meaning, no oil company is in a perfect position to increase its exploration activity in the Gulf. And of course, exploring for oil and gas doesn't always translate into the production of fossil fuels, although that's the goal.
Even with this relative uncertainty, BP's oil rivals, namely Chevron (CVX), Exxon (XOM) and Shell (RDS), not only have the freedom to pursue new permits, they're taking advantage of it. BP, on the other hand, does not. Technically, BP could apply for new permits, but its leadership knows it would get nowhere fast. BP's best bet is to get through the various investigations, improve safety and receive a nod from the federal government before pursuing new drilling permits.
While BP hangs back, Exxon has said it will submit a permit application to drill at its Hadrian prospect, according to the Houston Chronicle. The Hadrian project was among those that were put on hold last May when Interior Secretary Ken Salazar declared a moratorium on deepwater drilling. Chevron also confirmed with the Chronicle that it's in the process of filing a new drilling application. Independent oil and gas producer Anadarko, which a minority partner in BP's damaged Macondo well, also has indicated that it expects to resume drilling soon.
The risk for BP of course is that the feds will place a permanent stranglehold on the company's ambitions to explore for oil and gas in the Gulf. At the very least, it will have some catching up to do as its rivals move forward. The longer it takes to wrap up the oil spill investigation as well as any legal proceedings, the larger the gap between BP and its competition.
Photo from BP
For complete coverage, see All Things BNET on BP's Gulf of Mexico Spill
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