Tuesday, January 04, 2011

Obama Administration capitalizing on oil prices?

The Financial Times reports that oil prices are high enough now to threaten the global economy:

Oil prices are entering a dangerous zone for the global economy,” said Fatih Birol, the IEA’s chief economist. “The oil import bills are becoming a threat to the economic recovery. This is a wake-up call to the oil consuming countries and to the oil producers.”

Oil prices have edged closer to $100 a barrel in recent weeks and Brent crude hit $95 a barrel for the first time in 27 months on Monday as the economic recovery has gathered pace. [Emph. added]

What has the Obama administration done about the oil shortage? It banned deep water oil exploration. Although the ban has nominally been lifted, the Financial Times reported Monday that no actual permits have been issued:
Since lifting its ban in October on drilling at depths more than 500ft, the department has yet to approve any new deepwater exploration drilling permits.
The Obama administration is considering changing that for some companies:
“We are taking into account the special circumstances of those companies whose operations were interrupted by the moratorium and ensuring that they are able to resume previously approved activities,” said Michael Bromwich, head of the Bureau of Ocean Energy Management.
What do you bet that oil companies that get permits will be the ones that first discover a sudden need to donate to Democrats?

No comments:

Clicky Web Analytics