Enlarge Getty Images A helicopter takes off from Development Driller III, which is drilling a relief well at the site of the Deepwater Horizon oil spill in the Gulf of Mexico. The growth of deep-water oil and gas exploration is illustrated well by Anadarko Petroleum (APC) , one of the nation's largest independent deep-water producers in the Gulf of Mexico In 1997, Anadarko placed its Neptune drilling platform over oil and gas wells in 1,930 feet of water. Five years later, it cracked the 3,000-foot mark; and five years after that, it set a platform over natural gas wells in 8,000 feet of water. Last year, the company, with $8.2 billion in revenue, had nine deep-water discoveries. But in recent weeks, Anadarko and other offshore oil producers have hit several speed bumps. The Obama administration on Thursday took stringent steps to pause the industry's steady march to drill in ever deeper waters. President Obama wants more safety measures in place to prevent another massive oil spill such as the one that British energy giant BP is attempting to plug after six weeks and millions of gallons of spilled oil in the Gulf. OIL DISASTER: Obama points to federal slip-ups The measures create the biggest roadblock to the industry's deep-water expansion in several decades and will affect companies from Anadarko to giants such as Shell (RDS-A) and Chevron (CVX) in terms of delayed exploration and higher costs, oil industry analysts say. "There will be more regulation, and every sane person should welcome that," says Fadel Gheit, senior energy analyst for market research firm Oppenheimer. The BP spill, now the worst in U.S. history according to government estimates, prompted a ban on new offshore well drilling earlier this month. The Obama administration on Thursday extended that ban for six months for new drilling in depths greater than 500 feet. It halted work on all 33 deep-water exploratory wells in the Gulf pending investigations into the spill. It also suspended, until at least 2011, Shell's plans to drill five wells in the Arctic this summer. And it canceled several planned lease sales for new oil and gas exploration off the coast of Virginia and in the western Gulf. Interior Secretary Ken Salazar also said new safety measures would be required for the industry, including certification of equipment meant to prevent well blowouts, tougher inspections of deep-water operations and more requirements around key steps in well drilling. Salazar said the pause on some drilling is needed to prevent a repeat of the BP oil spill — which has resulted in the nation's largest-ever oil spill response. The American Petroleum Institute calls the delays on new wells very stringent, given that thousands of oil and gas platforms are operating safely in the Gulf and have been for years. The delays "are of great concern to the industry," says Rayola Dougher, senior economic adviser to API. They'll not only cost producers time and money but will cost jobs in the already devastated Gulf Coast region, she says. Chevon, in a statement, said halting deep-water drilling, even temporarily, would "have lasting energy security and negative economic consequences" for the country. It said "responsible drilling" should be allowed to continue. No immediate consumer impact The Gulf accounts for 30% of the USA's domestic oil production. Existing production won't be affected by the president's initiatives, nor will exploration in shallow waters. The restrictions won't boost consumer gas prices in the short term because there's currently excess oil production globally, says Robert Peterson, industry consultant with Charles River Associates. The delays in drilling today will, instead, affect production years from now. This year, Chevron planned to drill four exploratory or appraisal wells, which determine oil field size, in the deep water of the Gulf. Depending on how long the moratorium lasts, the "impact could be significant," says Kurt Glaubitz, Chevron spokesman. The company had plans to drill 60 exploratory or appraisal wells worldwide this year. The delays will add up, says a report from consulting firm Wood Mackenzie. Earlier this month, before work was ordered halted on the 33 exploratory wells, Wood Mackenzie estimated that a six-month ban on new drilling would cause a 4% drop in deep-water Gulf oil production in 2011. Tighter safety regulations will also drive drilling costs higher, which could make some areas in the Gulf too costly to explore further. More immediately, companies will have to adjust drilling plans. That may include deploying to other areas drilling rigs that cost up to $500,000 a day to lease. Anadarko had expected this month to begin drilling an appraisal well in deep water in the Gulf. Because of the ban, it moved the rig to other wells 60 miles away to do work, says spokesman John Christiansen. Anadarko has enough work in the Gulf to keep its rigs busy for several months. After that, it may have to move rigs to other areas, Christiansen says. BP owns 65% of the blown well and is its operator. Anadarko owns 25%. Mitsui owns 10%. BP is responsible for spill clean-up costs. Anadarko could be affected, too. It has $710 million in insurance, it said in a recent earnings release. "We share the president's commitment to ensure deep-water operations and exploration are conducted in a safe manner," Christiansen said. "We are fortunate to have a deep and diverse global portfolio that allows flexibility in deploying our capital." Long-term impact While companies face delays, a permanent ban on new wells is unlikely, says Pavel Molchanov, energy analyst at Raymond James & Associates. "That would be like saying, because of one airline accident, no one can fly again." But Molchanov says higher costs, in terms of production delays and heftier insurance bills, will drive some smaller producers out of the Gulf. Before the spill, Obama had also expressed support for opening more U.S. waters to offshore drilling. Deep-water drilling vastly expanded in the Gulf in the past two decades, and was poised, before the spill, to expand more. The region was projected to account for 36% of domestic oil production by 2035. Two-thirds of its current production comes from deep waters. "If you look at any large company on the exploration side, they talk about how their long-term growth hinges on the deepwater," says Philip Weiss, industry analyst for Argus Research. BP started its latest effort to plug the well on Wednesday. Hopes on Thursday that it was working sent BP shares up 7% to $45.38. BP is attempting a "top kill" procedure to plug the leak. Top kills are commonly done on land to shut down wells where drillers have lost control. But it has never been done in 5,000 feet of water. BP had already tried several efforts to stop the leak, including use of robots to reactivate equipment that was supposed to prevent a blowout and was considered a fail-safe measure. How soon producers will be able to resume drilling new wells may depend on whether the industry can convince regulators that it has good plans to prevent such disasters and promptly shut them down should they occur, says Ken Medlock, an energy and economics expert at Rice University. The spill has "turned a spotlight on every other company operating in deep water," Medlock says. Guidelines: You share in the USA TODAY community, so please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. 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