Sunday, May 15, 2011

Yea! More Oil Drilling!

Or NOT?

If you just read the headlines (which, I suspect many of this nation's citizens do), the news is good:
With Gas Costs High, Obama to Speed Oil Production
But, when you read further, you find out that isn't true:
Answering the call of Republicans and Democrats from Gulf Coast states, Obama said in his weekly radio and Internet address that he would extend all Gulf leases that were affected by a temporary moratorium on drilling imposed after last year's BP oil spill. That would give companies additional time to begin drilling.
The administration had been granting extensions case by case, but senior administration officials said the Interior Department would institute a blanket one-year extension.
New safety requirements put in place since the BP spill also have delayed drilling in Alaska, so Obama said he would extend lease terms there for a year as well. An oil lease typically runs 10 years. 
So, what good will a 1-year extension do?  Only a company already geared up can take advantage of it - many of the previous tenants had to move their rigs or sell them to other companies.  My guess: look for Soros-related businesses to benefit, since they will have had advance warning of the change in regs.

Also, check out in a few months how many Brazilian companies were able to profit from this (Soros has tentacles in both Brazil and Venezula).

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