Isra-Mart srl : EU energy chief to call for moratorium on deepwater drilling

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Europe's energy chief, Guenther Oettinger, will next week step up his call for a temporary moratorium on deepwater drilling in EU waters, according to draft documents obtained by Reuters.

In what is likely to prove a highly controversial move, Oettinger will call for a halt to all deepwater drilling until the results of the US government's official investigation into the causes of the Deepwater Horizon disaster in the Gulf of Mexico are known.

"The commission reiterates its call upon the member states to suspend the licensing of complex oil or gas exploration operations until technical investigations into the causes of the Deepwater Horizon accident are completed and the European offshore safety regime has been reviewed," stated the draft proposal seen by Reuters.

It added that licensing represents "the first key tool" available to governments to ensure the "safety of new drillings in complex environments".

A spokeswoman for the commissioner's office confirmed to the news agency that Oettinger will officially propose the moratorium next Wednesday.

The move is likely to face fierce opposition from the oil industry and North Sea governments, such as the UK, that have maintained that the current safety regime is able to cope with the risks presented by deepwater drilling.

The British government only last week gave the go-ahead for the first deepwater drilling off the UK coast since the Gulf of Mexico oil spill, granting approval to Chevron's plans to drill a new well west of the Shetland Islands.

Oettinger is in the process of developing a major new 10-year energy strategy for the EU, which is expected to argue that European countries need to invest €1tn (£869m) over the next decade if they are to deliver cuts in carbon emissions and ensure security of supply.

According to a draft version of the Energy 2020 strategy, again obtained by Reuters, the document will warn that energy prices will have to rise across the EU to help fund the huge investment programme.