Jason Barton

Professional Information and Energy News

Obama to Propose More Oil Drilling in Gulf

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Interesting. After that polarizing healthcare debate, it looks like Obama is trying to mend some bridges with a more pragmatic approach. A more liberal source, however, claims that he’s actually alienating both ends of the spectrum with this effort. We’ll see what happens.

Obama to Propose More Oil Drilling in Gulf

MARCH 30, 2010

By STEPHEN POWER And IAN TALLEY

WASHINGTON—The Obama administration will propose allowing offshore oil and natural-gas exploration and development in a large swath of the eastern Gulf of Mexico, after months of criticism from Republicans who have made expanded offshore drilling a political rallying cry.

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In addition, the administration plans to announce new steps to determine how much oil and natural gas is buried off the coasts of Middle and Southern Atlantic states, where oil-reserve estimates are decades out of date.

[…]

At the same time, Mr. Obama’s plan wouldn’t allow new oil and gas development off the coasts of Northern Atlantic states or California, whose political leaders have long opposed offshore drilling. The administration will call off a plan drafted by the administration of former President George W. Bush that would have given oil companies access to Alaska’s Bristol Bay, an area teeming with wild sockeye salmon and many commercial fishing interests concerned about the impact of drilling on their livelihoods.

[…]

The idea of expanding offshore drilling is taking on increased importance in the broader debate over climate and energy legislation.

[…]

Mr. Obama is unveiling his plan at a delicate time for oil and gas companies. Shut out of resource-rich parts of the world like the Middle East and Russia, many oil majors increasingly view the deep waters off the southern U.S. as a key source of exploration success and production growth. Exploration in the Gulf of Mexico is expensive, compared with other basins, but high production rates and proximity to U.S. markets have made drilling there cost-effective.

Read the entire article here.

Written by Jason

April 1st, 2010 at 10:02 am