Gulf Oil Spill Spells Higher Prices

By Greg Hunter’s 

A little more than a month ago, President Obama took a big step toward weaning the country off foreign oil.   His bold plan, announced at the end of March, included opening up 167 million acres along the Atlantic coastline as well as parts of the eastern Gulf of Mexico and the northern coast of Alaska for drilling.  This move was supposed to help reduce America’s dependence on imported oil.  What a difference a month and one giant gushing oil spill makes.

Just last week, the Obama Administration put on hold any plans for new oil and natural gas exploration until more is known about the spill in the Gulf off the coast of Louisana.  This spill is already being compared to the Exxon Valdez, which was one of  the worst oil spills in history.

There are some big differences between the Valdez and the current Gulf spill.  The Valdez spill came from a single tanker.  All told, 10.8 million gallons poured out into the Prince William Sound in Alaska.  The Gulf spill is reportedly coming from a leak a mile under the ocean at a rate of 200,000 gallons a day.  It has been reported 9 million gallons have already surged from the undersea well.  This is a highly unusual leak because it is so far below the surface (nearly a mile deep).  According to Reuters, It could take weeks to stem the flow of oil and would require either trapping it and channeling it to a tanker, or drilling a relief well. In the interim, the Coast Guard deployed booms along parts of the coast to protect the shore.”  It looks like far more oil will be spilled here than in the Prince William Sound in 1989.

The biggest difference between the Valdez and the current Gulf spill is location.  The Valdez created a giant environmental disaster, but it was in a far away place most people never see and few people live.  The Gulf spill could affect areas that are much more populated and visited relative to Alaska, namely the Louisiana, Alabama and west coast of Florida.  According to the Associated Press, environmentalists are seizing on the spill issue, “This event is a game changer, and the consequences, I believe, will be long-lasting ecologically and politically – and will be irreversible,” said Richard Charter, energy consultant to Defenders of Wildlife.  (Click here for the complete AP story.)

This may be a far worse spill than the Valdez both physically and politically.  I predict the pictures of oil soaked wildlife will put a discouraging effect on new oil and natural gas exploration in the United States.   The chant “Drill Baby Drill” just might turn into “Chill Baby Chill.”  Long term, this will put downward pressure on supply and upward pressure on price.  In short, the political and environmental fallout from this spill will keep America addicted to expensive foreign oil for some years to come.

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  1. PatriotWatch

    Boy this was perfect timing. Is this George Bush fault?

  2. Elihu E. O'Dowd

    Devastating! Now some of the industry ‘experts’ are predicting the eventuality that this spill will also affect the East coast of Florida, and potentially move up the east coast of the US from there!

    I’ve pasted the following excerpt from an AP article that appeared this afternoon on DRUDGE:

    “But if the oil gets into the Gulf Stream and carries it to the beaches of Florida – and potentially loops around the state’s southern tip and up the eastern seaboard – several experts said it stands to be an environmental and economic disaster of epic proportions.”

    “It will be on the East Coast of Florida in almost no time,” Graber said. “I don’t think we can prevent that. It’s more of a question of when rather than if.”

    Of course, this statement could be just ‘Headline Hyperbole’, if not, we’re going to see $8.00 (or so) gasoline before we can flinch, not to mention a bunch of tar covered beaches!

    • Greg

      No doubt this is bad and it could not have come at a worse time for America. Thank you.

  3. OldSchool

    It would also appear that this travesty will prove to be a fulcrum for the increase in gas prices, and a massive influx of cleanup money (accrued to the public debt). The greater impact of this spill will not be evident for a month or two when the uncapped oil gusher will contaminate most of the Gulf of Mexico and assimilate the seafood industry and wildlife preserves in 5 gulf coast states (TX, LA, AL, MS, FL).
    The chemical dispersants they suggested will create a bigger problem than the present, while the option of setting it afire creates yet another environmental disaster. And what I cannot logically figure out, is why Obama sent SWAT teams to the other rigs. Damage control and firefighting? Probably not. Preventing sabotage? Possibly.

    • Greg

      Old School,
      You are a big thinker, thank you!

    • PatriotWatch

      Regardless of the spill gas was already going up. $3.15 in the burbs. This is a progressive platform not an oil platform.

      Obama told us over and over again that he will raise prices on purpose.

  4. David Conrad

    Unfortunately Greg, you are once again on the money. Oil prices were already headed north, as summer is approaching. The graph up will just get steeper. I guess I am in a minority, but why can’t we start building nuclear generating plants and switching to natural gas for our cars and trucks? Why not?

    • Greg

      Good question!

    • PatriotWatch

      Because there is NO money in it for our government. Oil vs. nuclear. Nuclear vs. natural gas etc etc etc etc.

      Question: Why is it George Bush fault LA was not prepared for it’s citizens? Why is it Obamas fault oil is spewing across one of the most beautiful parts of America.

      Government should be there to support and aid. They should be there to over see and delegate.

      My question is : You are drilling in the gulf and are NOT prepared for an accident. Where is BP and their emergency plan and back up plan? Why wasnt LA prepared for a disaster such as the one they had. The potential was/is very real. YOU LIVE ON THE COAST!!!!

      That said we ALL know that progressives will use this opportunity. Another question: When AMERICANS are not allowed to drill off the coast will we do EVERYTHING in our power to prevent RUSSIA AND CHINA from drilling here?

      • Greg

        Thank you for your comments. You are always welcome here.

  5. Simple Living

    Our entire concept of living is skewed. While some over eat others are starving. Divided by religious concepts war are fought in the name of God. Humankind is vulnerable to earthquake, vulcanism, storms, drought, etc.; yet we ignore our vulnerability and invest in insanity. The planet is being trashed and yet it is our life support system. I have the feeling the fulcrum point has been reached and the fragiity of humankind will be humbled into a simpler lifestyle which will bring about the realization of actually how simple and beautiful Life, Family and Diety are.

    • Greg

      Simple Living,
      You are probably right. Thank you.

  6. jason

    Unfortunately this will be an E.L.E(Extinction Level Event)that will kill 100’s if not thousands of species! They actually have the technology to stop this oil spill (more like leak). They can implode the well head/opening and permanently cap it. This is proven technology. The reason why they are not doing this is because BP’s insurance policy is giving them $2 for aver $1 they loose, plus they’re making billions on top of that with the price hikes let alone the current administrations political agendas that can be pushed forward as well(destroying the economy). They are lying to us when they say “that when they complete the drilling of a new well it will stop the leak”, think about it, even if they can hit a 6″pipe at 2 miles below the surface of the ocean there not actually stopping the flow of the leak there just removing/diverting the some of the flow.

    As of today the size of the oil slick is equivalent to the surface area of Lake Huron! in 3months time when they “supposedly” stop the leak it will be equivalent to the surface area of the entire great lakes basin or 1/5th of the Gulf of Mexico that is if there number they are telling you are correct and that none of the oil washes ashore, which I don’t believe either.

    The fact of the mater is that the gulf stream is one of the major currents that effect the worlds oceans, so this will surly effect the entire Atlantic ocean if not even further!!!!!

    Stop the Genocide

  7. Carolina De roose

    There is the Keshefoundation that can help very fast to clean all the oil and prevent any further contamination any where.
    Go and have a look on this website
    This would be of the best intrest for everybody and the wildlife.
    The keshefoundation is there to help.
    Many regards C De Roose from Belgium

    • Greg

      Thank you for the comment.

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