Oilprice's  Instablog

Send Message
The website Oilprice.com offers free information and analysis on energy and Commodities. The site has sections devoted to Fossil Fuels, Alternative Energy, Metals, Economics and Geopolitics. To find out more visit our website at: http://www.oilprice.com
My company:
My blog:
  • U.S. Decision on Offshore Drilling Holds Promise of Future Oil, Brings Immediate Debate 0 comments
    Apr 1, 2010 3:17 PM

    President Barack Obama’s move to lift a moratorium on new offshore drilling leases and to designate further areas for exploration won’t produce much oil in the near future, but is already generating a good deal of hot air in Washington.


    Republicans said the measure – which opens up offshore tracts along the Atlantic and Gulf Coasts as well as off the North Slope of Alaska – does not go far enough to realize the full potential for domestic oil production. Environmentalists excoriated the president for compromising efforts to limit carbon emissions.


    No one seemed sure that the concession to the oil industry and the Republicans would win any new votes for a comprehensive climate bill, which the administration hopes to pass this year.


    The first tract that might become available is offshore Virginia, already designated for a lease sale in 2011 before the Obama administration stopped it last year. Other blocks would be available only in 2012 at the earliest, pending government studies. Actual exploration and drilling may be years away.


    The president excluded the Atlantic Coast north of Delaware, much of offshore Florida, and the entire U.S. Pacific Coast. He also excluded Bristol Bay in Alaska, while opening two sectors north of Alaska that are thought to have large untapped reserves.


    Sectors in the eastern Gulf of Mexico tract are believed to be the richest of the offshore fields included in the decision. The area may contain 3.5 billion barrels of oil and 17 trillion cubic feet of natural gas, according to some estimates. The western sector of the Gulf has already been developed with hundreds of offshore drilling platforms.


    Offshore drilling was a big issue in the 2008 presidential campaign, with Republican candidates chanting “Drill, baby, drill” at campaign rallies. As a candidate, Obama urged caution, but did not rule out expansion of offshore drilling.


    Obama tried to stave off criticism in making the announcement by putting the decision in the context of his overall energy strategy.


    “There will be those who strongly disagree with this decision, including those who say we should not open any new areas to drilling,” he said in front of an audience at Andrews Air Force Base. “But what I want to emphasize is that this announcement is part of a broader strategy that will move us from an economy that runs on fossil fuels and foreign oil to one that relies more on homegrown fuels and clean energy.”


    Source: http://www.oilprice.com/article-us-decision-on-offshore-drilling-holds-promise-of-future-oil-brings-immediate-debate-244.html


    By. Darrell Delamaide

    Disclosure: No Positions
Back To Oilprice's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.