Congress Needs to Force Development of the New Oil Discovery in the Gulf

EIN News says, "Exxon Makes Major Oil Discovery in Gulf of Mexico Exxon Mobil said it has discovered an estimated 700 million barrels of oil equivalent at a deepwater well off the Louisiana coast, a major find that a top House Republican argued should push the administration to speed up offshore permitting. (foxnews.com)".

This is a prime example of how technology can change the economic picture. The difficulty is in the timing. A mere discovery of this large oil deposit unfortunately does not bring immediate relief to the American public in the form of lower fuel prices. It takes time to install equipment to bring the oil to the service, transport it to refineries, and refine it to gasoline. However, it bodes well for the future.

As indicated in the announcement, government restriction can also be a completely limiting factor. It is not clear whether the discovery has been made through drilling, which requires a federal permit or whether it came about through other means. In either event, the Obama Administration has the power to make this find unavailable to the American public. This is a distinct possibility, because from previous Administration actions, we know that every effort will continue to be employed in order to promote the alternate energy forms of wind and solar.

Congratulations to the "top House Republican" for his push to speed up offshore permitting. Too that we don't have his name so that we can give him proper credit. Even so, it will be necessary for the whole Congress to press the Administration so that the American public can benefit from the new discovery.