The official moratorium on deepwater drilling in the U.S. Gulf of Mexico was lifted in October 2010, but has been replaced with what can only be described as a quasi moratorium as new permits continue to languish in a byzantine approval process that has frustrated the industry. Investors and industry participants have every reason to be confused. On Monday, The Wall Street Journal reported that major players did not expect new permits to be issued until late 2011 or 2012. This was followed today by another article in the Journal indicating that certain projects could receive a go-ahead within weeks. It seems like the Obama Administration either does not know how to proceed or an internal power struggle is taking place as competing interest groups influence policy. Read this article for our views of Diamond Offshore as a potential opportunity to profit from the market’s current view of offshore drilling.