Monday, October 4, 2010

BP (NYSE:BP) Oil Spill Doesn't Slow Down Offshore Oil Exploration, Drilling

All around the world the huge demand for oil continues to generate more offshore oil exploration and drilling, even with the BP (NYSE:BP) oil spill, with Cuba being the latest to enter the sector, saying exploration rigs will probably start drilling off their coast some time in 2011.

That would bring them very close to the coast of Florida, about 45 miles away.

Cuba is expected to drill even deeper than the Deepwater Horizon oil rig owned by Transocean (NYSE:RIG), which was leased to BP in the accident.

Chevron (NYSE:CVX) and Canada also revealed they had quietly been drilling off the coast of Newfoundland during the BP Gulf of Mexico crisis, finishing a well there about a month ago.

There are also too many projects to follow off of Africa and many other regions of the world.

The bottom line is offshore and deepwater drilling isn't going to go away, and will only increase.

America better respond accordingly and quit over-responding to a one-time event and free up the waters for more exploration and drilling, including many of the onshore areas as well.

Eventually that will happen, as demand will require it. It's only costing billions more to do it because of radical and controversial environmental groups who think they can stop the energy demands around the world. All they're doing is making it more expensive to do.

Oil companies should start to battle back and sue them into oblivion, charging them with criminal acts as Chevron recently did. They backed off quickly when facing fines.

There's absolutely nothing that will stop the increase of demand for oil, and nothing will stop offshore deepwater drilling.

Whether America or American-based companies benefit from it in the long run will be determined by them. The rest of the world will continue exploring for, drilling and discovering oil.

That isn't going to stop happening for decades, if not more, into the future.

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