
Thanks to President Obama and his decision to put a six-month moratorium on deepwater oil-drilling in the Gulf of Mexico, it looks like the exodus of oil companies from the Gulf is already beginning, and they made be heading to Brazil.
CNN – The Buzz: ……..While most oil companies with deepwater drilling operations were hit hard immediately after the tragic explosion at the Deepwater Horizon rig on April 20, investors have appeared to be more discriminating in the past few weeks.
“The initial reaction was this is bad for all deepwater oil companies,” said David Pursell, managing director with Tudor, Pickering, Holt & Co., a Houston-based investment bank focusing on the energy industry. “Now, if you have Gulf of Mexico exposure, your stock is still hurting. But if you don’t investors realize that your company could benefit.”
As long as companies are prohibited from doing more exploratory drilling in the Gulf, that’s going to lead big oil firms to look elsewhere around the globe, Pursell said.
Brazil is a natural option given its ample resources, and Petrobras is pretty much the only game in town for an oil company looking for a domestic partner there.
“Petrobras could be a winner because capital could be directed from the Gulf toward Brazil,” Pursell said. “If the six-month moratorium in the Gulf becomes 12 months, Brazil could ultimately utilize mote drilling assets. And Petrobras is the preferred partner.”………… Read More
Real Presidential leadership would have found a way to deal with the crisis, and hold BP responsible without destroying the future of the Oil Industry in that region. Instead, Obama appears to be using it to do what Democrats do best – demonize corporations – and move toward his Global-Warming, hysteria-driven Cap and Trade agenda. In the long run it will mean higher energy prices and a weaker U.S. Economy. That won’t help the people of the Gulf Region.