BHP (NYSE:BHP) Gets Approval to Drill in Gulf of Mexico

The Bureau of Ocean Energy Management, Regulation and Enforcement has granted BHP Billiton (NYSE:BHP) the right to drill in the deep waters of the Gulf of Mexico.

Regulators gave the go ahead for BHP to dwell a water injection well in the Green Canyon region of the Gulf.

Water injection wells weren't included under the oil moratorium imposed by the Obama administration, and were approved for drilling during that period of time.

Water injection wells are used as a means to increase production by injecting water back into the reservoir.

This is the first well approved since the oil moratorium was lifted.

BHP will use "Development Driller I" as the rig for the new well, which will be provided by Transocean (NYSE:RIG), the owner of the Deepwater Horizon which exploded while BP (NYSE:BP) was leasing it, leading to the Gulf oil spill.

Permits for other types of drilling have yet to be approved, effectively maintaining the effects of the Obama moratorium far after it has been lifted, which seems to have been the strategy of the administration all along.