This morning’s announcement that the Obama Administration is allowing further exploration studies and drilling in Alaskan, Mid-Atlantic, and Gulf of Mexico oil reserves has produced one big winner.
Basically, this is a massive coup for Shell.
On March 23, Nexen and Shell announced a major finding of oil in the Eastern Gulf of Mexico. Shell has previously discovered significant reserves in the area. Total reserves in the Eastern Gulf are estimated as high as 2.78 billion barrels of oil.
The Federal government bought back control of several natural gas and oil sites near the coast of Florida which were owned by Chevron, Conoco, and Murphy Oil in 2002. So while Shell may have won big in the short term, other oil and exploration companies seem prepared to strike in the medium term.
Shares of Shell are up less than .5% on the news.
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