Monday, July 05, 2010

Why Bammy Wants a Moratorium on Drilling

You all know the answer as to why the Obama Regime wants to halt deep-water drilling for oil

Here are the numbers, which you may NOT have known.

Analysts’ projections of production loss and delay arising from the moratorium range from Wood Mackenzie’s 155,000 barrels a day, or 2.2% of U.S. liquids supply in 2011 to 100,000-300,000 barrels a day in the U.S., and 800,000-900,000 barrels a day globally by 2015, from the International Energy Agency (IEA)

Meanwhile, Sanford C. Bernstein believes as much as 500,000 barrels a day from 2013 supply may be cut with a one-year worldwide delay in deepwater drilling.


Offshore drilling costs are already escalating since the Gulf oil spill with the rising environmental, insurance costs and legal risks.

...MarketWatch quoted a recent Deutsche Bank analysis that any tightening of regulations could boost deepwater exploration and development costs by about 10%, and add $5 a barrel to future oil contracts.

Barclays Capital told Bloomberg its latest forecasts of $106 oil in 2012, $137 in the long term, and that oil futures for 2018 at under $100 are “undervalued” as BP Plc’s spill in the GoM will raise the costs and lead to drilling restrictions.

That, my friends, is the reason.

He wants to bankrupt consumers of petroleum right along with consumers of coal-based energy.

IOW, all of us.

HT: ZeroHedge

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