Thursday, May 27, 2010

Obama Bans Drilling Of Offshore Oil Wells, Huge Blow To Shell (LSE:RDSA)

An aide of President Obama, under anonymity said, Obama is going to announce that he will not let Shell Oil Company (LSE:RDSA) continue exploratory drilling off the coast of Alaska. At least until the commission, in charge of "how to prevent this from ever happening again," is able to do a full review. This is just one of the topics Obama will cover at his press conference this afternoon.

The President is also going to announce that intends to extend an existing memorandum for six months on any new drilling. He will also cancel lease sales planned for August off the Coast of Virginia as well as off the Coast of Alaska. The sale in Virginia was highly supported by state officials, until environmental groups as well as the large military population did not share the same opinion.

These announcements from the president are expected to be meet with some resistance. Like from the energy industry officials who feel like the effects of the Deepwater Horizon incident should not prompt a nationwide ban on offshore oil and gas drilling.

Shell officials have stated that they should not have the same restrictions because their plans were to drill in shallower water unlike BP.

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