Sunday, June 27, 2010

Shell (LSE:RDSA): We Must Keep Deep Water Drilling For Oil

Peter Voser, the chief executive of Royal Dutch Shell (LSE:RDSA) said even though there's been a massive oil spill due to BP, lack of resources and ability to contain the crude oil, deep water drilling is still an absolute necessary to be able to meet the growing energy demands the industry is facing. He was sure to add though that the disaster readiness must be properly evaluated and corrected.

"My expectation is that we will go forward with it but it needs some changes. It's clear, now some of the findings are coming out, that the oil response side has got some weaknesses and we as an industry have to come together in order to actually be better prepared in the future," said Voser.

Due to the worst oil spill in history, President Obama put into play a six month moratorium on all deep water drilling. This was put into place in May and was only supposed to last through that month and be effective on any new deep water drilling. As the month of May came to a close, that is when Obama extended the moratorium to six months and made it effective on all drilling rigs in the Gulf.

Voser said, "we have got other safety procedures across the globe. But I think again that for some companies, there will be some learning in this that needs to be adapted. Safety and design features need to be constantly improved. By doing so we can actually prevent these kinds of things from happening much more and I think that's where we need to drive it even further on the global scale."

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