Tuesday, January 4, 2011

(Updated) Gas prices on rise: Drilling Is Stalled Even After Ban Is Lifted

Wall Street Journal "More than two months after the Obama administration lifted its ban on drilling in the deep-water Gulf of Mexico, oil companies are still waiting for approval to drill the first new oil well there. Experts now expect the wait to continue until the second half of 2011, and perhaps into 2012."

The Causes and Effects of High Gas Prices "But a huge part of the supply problem is due to environmental regulations (and environmentalists' opposition to new refineries), and political opposition to oil exploration in the Gulf of Mexico and in parts of Alaska. 
Photo: The Freedomist
"Gasoline supplies are impeded by regulations that require specialized blends of gasoline for certain parts of the country. Gasoline used to be essentially the same nationwide, but there are many different "flavors" of gas sold now, in some cases for specific counties. Generally this seems to cause the price of gas to be higher in and around big cities.
"Another factor that drives up the cost is the political opposition to offshore drilling."

http://townhall.com/cartoons/lisabenson/

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