Exxon Mobil Corp. and the federal government are fighting over one of the largest oil discoveries in the Gulf of Mexico that could yield billions of dollars of crude in coming years, according to a report in The Wall Street Journal.
The Julia oil field, about 250 miles southwest of New Orleans, may hold billions of barrels of oil and gas equivalent. Exxon, which announced the discovery in 2008, wants to tap that field. But the Interior Department says Exxon's leases have expired and the company hasn't met requirements for an extension.
I've followed this story for months. The Obama administration telegraphed their intentions and they followed through. The government will argue that it is tired of companies sitting on oil reserves and not developing them.
Interestingly it was the same government that put a stop on drilling in the Gulf for the past year.
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