Wednesday, March 31, 2010

A BIG day for domestic oil and gas exploration

While it's a flat day for the markets in general, the oil and gas sectors are having a GREAT day, thanks to a reversal on the ban of offshore oil drilling in most US waters.  

“By responsibly expanding conventional energy development and exploration here at home we can strengthen our energy security, create jobs, and help rebuild our economy,” said Salazar. “Our strategy calls for developing new areas offshore, exploring frontier areas, and protecting places that are too special to drill.  By providing order and certainty to offshore exploration and development and ensuring we are drilling in the right ways and the right places, we are opening a new chapter for balanced and responsible oil and gas development here at home.”

They probably didn't ask the opinion of our energy-hating Secretary of Energy, who is quite certain that $8 gasoline is good for business.  Secretary Chu once said  "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe."  Glad to see his influence is waning.

It must be noted of course, that this is just a first step for this anti-energy administration.  Republican House leader John Boehner pointed out the exclusion of California and Alaska waters from this announcement:

“The Obama Administration continues to defy the will of the American people who strongly supported the bipartisan decision of Congress in 2008 to lift the moratorium on offshore drilling not just off the East Coast and in the Gulf of Mexico, but off the Pacific Coast and Alaskan shores as well. Opening up areas off the Virginia coast to offshore production is a positive step, but keeping the Pacific Coast and Alaska, as well as the most promising resources off the Gulf of Mexico, under lock and key makes no sense at a time when gasoline prices are rising and Americans are asking ‘Where are the jobs?’

Up especially big are exploration and production companies along the gulf coast:

Copyright 2010 AlphaNinja

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