Earlier today, I listened to Byron King — who knows the energy sector as well as anyone — explain how US energy policy is going to chase away all of the deep sea rigs from the Gulf of Mexico. That means we ae going to be in deep trouble in the future.
King is a really sharp guy. But I was relieved to see that Exxon Mobil, Chevron, Royal Dutch Shell and ConocoPhillips are even sharper: The four majors are trying to make the case that they should be allowed to drill in the Gulf, and that they have a plan — unlike BP — to deal with future disasters:
“Four of the world’s largest oil companies are creating a strike force to stanch oil spills in the deep waters of the Gulf of Mexico in a billion-dollar bid to regain the confidence of the White House after BP PLC’s disaster . . .
The new system, consisting of several oil-collection ships and an array of subsurface containment equipment, resembles the one developed by BP during three months of trial and error after its leased rig exploded April 20, unleashing the worst offshore oil spill in U.S. history. But the companies say it will be ready to go at all times and can be used on the wide variety of equipment found in the deepwater Gulf.”
That is very good news for energy consumers. It gives a face saving resolution to everyone, let’s the White House declare victory, and lets the oil keep on flowing.
Whenever I find myself as the most bullish guy at a conference, I always look around and go “Huh?” To be blunt, the end of civilization discussions I keep hearing are no fun to listen to. Tiresome, truth be told.
Regardless, this is an excellent announcement — now let’s see if they follow through on it.
Oil Majors Building Disaster-Response System
WSJ, JULY 21, 2010, 6:18 P.M.