Forget renewable energy, for the moment oil companies are more focused on plentiful energy. The OPEC countries aren’t the only ones who want to keep oil prices from falling. While we know cheap oil prices are a welcome sign for consumers, the oil companies say that if prices fall like they did this past December (to $34/barrel), it could ruin the hot streak they’ve been on so far this year.

According to the New York Times, over 200 new oil discoveries have been made in dozens of countries so far this year. During the first half of the year alone, the new finds equaled about 10 billion barrels of oil, says IHS Cambridge Energy Research Associates. If oil companies continue at this pace until year’s end, they will have discovered more oil then they have in nearly a decade.

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Extraordinarily high gas prices were the catalyst behind the off-shore drilling debate that surfaced during the Bush Administration. Eight months later, the topic has resurfaced for a different reason — the recession. Oil executives testified before the House Natural Resources Committee today in Washington, claiming that off-shore drilling could create an estimated 76,000 jobs.

Just as President Obama’s economic recovery plan received criticism for lacking an immediate impact, the same is being said for off-shore drilling: Read the rest of this entry »

Oil prices posted their highest weekly gain in nearly two months, raising two percent since Monday. The threat of Tropical Storm Gustav moving through the Gulf of Mexico by Sunday has many investors worried. The Gulf of Mexico is home to more than 5,000 offshore oil rigs that drill one-fifth of the US’s oil supply. Sunday will be the first true test for insurance companies who cover the offshore rigs since two devastating hurricanes, Rita and Katrina, caused nearly $50 billion in damage. The two storms compiled $8 billion in offshore-drilling claims to insurance companies; 113 platforms were destroyed, as well as 457 pipelines.

Gustav is not expected to reach the devastation of either of those two storms. According to the National Hurricane Center, as of 8a.m. this morning, Gustav has remained under the classification of a Tropical Storm. Insurers of offshore oil rigs are confident the lessons they learned from Rita and Katrina will pay off for them this hurricane season. Yet, if insurance companies are worried about covering their tail, it may not be the best scenario for oil drillers and consumers: Read the rest of this entry »

House Speaker Nancy Pelosi proposed on Saturday to incorporate expanded offshore drilling into the new Democratic energy bill. Both Pelosi and Senator Obama have expressed willingness in recent weeks to ease staunch Democratic resistance to expanded offshore drilling in order to compromise and pass a bill on the hot-button topic of energy.

Republicans have remained very skeptical of the Democratic proposal; fearing willingness to incorporate offshore drilling will open up the bill to various other proponents Republicans have strongly disagreed with:

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