Thursday, June 3, 2010

All New US Drilling In the Gulf Stopped!

Incredible.

Click here for full story.

I can only assume this will be good news for Canadian oil sands and the Williston Basin. For the Williston Basin, it will only be good news for the immediate future. Long term, this is not good news.

I had opined on the day of the tragedy that this would be the end of off-shore drilling.

Federal control (EPA) of fracking is just around the corner. You think?

Once these folks start sitting around the table, all issues are ON the table. Staffers working behind the scenes will set the agenda, and will draw up the PowerPoint slides to include deep water, shallow water, and on-shore drilling. This will take on a life of its own.

The US will community-organize itself right out of the oil business.

2 comments:

  1. Hey Bruce,
    Should an investor start looking at
    companies that treat frac fluid for
    investments? I do agree another shoe
    is going to drop here pretty soon.
    esp. New York and North east U.S.
    natural gas wells. Any thoughts?

    ReplyDelete
  2. I had not even thought of that; you are several steps ahead of me!

    Lynn Helms, director of NDIC (North Dakota Industrial Commission), says that if EPA does regulate fracking, everything (as in horizontal drilling) would come to a standstill for two to three years as regulations are hammered out.

    So, I don't know. Seems "iffy" but I'll keep my eyes open for any article on fracking fluids.

    (Actually, if everything comes to a halt, I would expect price of natural gas to shoot up, suggesting investments in natural gas companies now might be a better bet. If you've noticed, there has been a lot of activity in mergers/buying/selling natural gas companies lately; and I've posted on that.)

    ReplyDelete

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