AP:

The drilling moratorium enacted after the BP oil spill applies only to the deepwater Gulf of Mexico. Yet energy exploration in the Gulf’s shallow waters has come to a virtual standstill as drillers grapple with tougher federal rules since the spill.
The pace at which regulators grant drilling permits in water less than 500 feet deep has slowed sharply this summer, an Associated Press analysis of government data shows. Just four out of 10 shallow-water drilling applications have been approved from June through August; 15 applications were sought and approved in the same period last year.
Environmental groups are encouraged by the trend. But drilling executives say the new rules, which require them to produce detailed spill-response plans and estimates for worst-case scenarios, are adding millions of dollars in costs and causing delays that have led to layoffs. Executives worry that when the Obama administration lifts the six-month moratorium on deepwater drilling, where the risks are greater, the permitting process will be even slower.

The rest here.