Court Rejects US Bid To Keep Drilling Moratorium

Obama takes another hit.

NEW ORLEANS — A federal appeals court on Thursday rejected the federal government's effort to restore an offshore deepwater drilling moratorium, opening the door to resumed drilling in the Gulf while the legal fight continues.

The ruling is not the final word on the Obama administration's fight to suspend new drilling projects so it can study the risks revealed by the disastrous BP oil spill.

The same appeals court is expected to hear arguments on the merits of the moratorium case in late August or early September.

While it's possible that 33 exploratory wells suspended by the moratorium could resume drilling, companies might not bother with the expense while the ultimate future of the projects hangs in the balance.