Deepwater Drilling Ban Lifted by New Orleans Federal Judge; White House will appeal...

(By Laurel Brubaker Calkins and Margaret Cronin Fisk, Bloomberg) - A New Orleans federal judge lifted the six-month moratorium on deepwater drilling imposed by President Barack Obama following the largest oil spill in U.S. history. Shares of drilling services companies jumped on the news.

Obama temporarily halted all drilling in waters deeper than 500 feet on May 27 to give a presidential commission time to study improvements in the safety of offshore operations. More than a dozen Louisiana offshore service and supply companies sued U.S. regulators to lift the ban.

U.S. District Judge Martin Feldman today granted a preliminary injunction, halting the moratorium. Government lawyers told Feldman that ban was based on findings in a U.S. report following the sinking of the Deepwater Horizon rig off the Louisiana coast in April.