With crude oil lurking at $90 a barrel, pessimism may be unavoidable in an area that has been surrounded with tension.
And thanks to BP and the Obama administration, that tension and pessimism will only grow stronger.
Just yesterday the Obama administration decided to ban oil and gas drilling in the Eastern Gulf of Mexico and Atlantic Coast for at least seven years.
As if the BP disaster didn’t hit our economy hard enough—it has prompted Obama’s decision, which will place pressure on a price in market where demand is already tight.
This comes just 8 months after the administration was considering opening up new areas for oil and gas development in order to stimulate jobs and reduce energy prices.
So instead of following sights for reducing the nation’s reliance on foreign oil, it seems like the administration has done just the opposite.
Granted, their decision comes out of concern for the environment and future oil economic disasters, but it does not help any of us at the pumps. Oil investors should realize that America seems to never fail when it comes to foreign reliance on oil.
Good Oil Investing,
Michael Boytano
