Fallout: No New Drilling in Alaska

For those wondering if North Dakota could overtake Alaska in oil production, this will add fodder to the discussion: the Federal government halts all new drilling in Alaska until oil spill in the Gulf is resolved.

I seriously didn't think that North Dakota can out-produce but this certainly has to be good news for those concerned with recent "free fall" in price of oil.

And indeed it is: I just checked -- price of oil up significantly in last 12 hours.

By the way, isn't this a great way for the her "enemies" to get back at former governor of Alaska? Just saying. Maybe we won't need that pipeline after all.

Update, four hours later, May 27, 2010: the more I see of this, the better I feel about the Bakken. Already the price of oil is up (mostly due to news out of China and its support of Europe, but I can't but think that removing deepwater drilling will keep oil prices trending higher in the out years.  Yup, the knee-jerk response to put a moratorium on more deep water drilling is about par for the course. I assume the hole is plugged or nearly plugged now that the Administration has taken credit for stopping the leak.

Update, five hours later, May 27, 2010: Obama -- "go to the beaches; most open; most clean."  This sounds like a former president telling folks to go shopping during the recession following 9/11 terrorist events. Also, which is it: worse than the Exxon Valdez or "most beaches clean?"


North to Alaska, Johnny Horton