New U.S. oil drilling pause to end November 30: source

WASHINGTON (BestGrowthStock) – The Obama administration will suspend some offshore oil drilling projects on Monday until November 30 at the latest, as prepares to revise an earlier moratorium a U.S. court found too broad, said a government source familiar with the plan.

Earlier on Monday, the White House said the new drilling restrictions would be announced later in the day.

It follows a U.S. appeals court decision that the government’s plan for suspending deep water drilling also failed to take into account the economic impact it would have on the industry and Gulf Coast economies.

The moratorium on some deep water drilling projects is a response to BP Plc’s April 20 oil rig blow out that has sent millions of gallons of crude spewing into the Gulf of Mexico, ravaging fragile ecosystems and Gulf coast communities.

The suspension of some projects is designed to give the government more time to investigate the Deepwater Horizon oil rig explosion, which led to the largest oil spill in U.S. history, and to institute new safety practices.

According to the government source, who asked not to be identified, Interior Secretary Ken Salazar will be open to modifying the new deep water drilling suspensions based on new information. But first, industry must improve its practices and answer questions about safety in deep water drilling practices and oil spill response plans.

The new moratorium, according to the source, could end before November 30 if Salazar determines that the deep water drilling projects can be carried out safely.

When the first moratorium was announced in May, it was expected to last around six months, although a specific expiration date was not woven into the proposal.

(Reporting by Tom Doggett and Richard Cowan; editing by Todd Eastham)

New U.S. oil drilling pause to end November 30: source