Gulf of Mexico drilling heats up
Activity in the Gulf of Mexico is picking up. Bloomberg reported that “the Obama administration has issued this year the most deep-water oil-drilling permits for the Gulf of Mexico since 2007 as high crude prices revive exploration slowed by the 2010 BP Plc spill.”
The Gulf is not the only place that drilling is back. The reality is that oil exploration companies continue to poke holes in the U.S. at an amazing rate as shown by this graph from the EIA showing monthly crude oil rigs in operation goes back to 1988. Currently there are over 1,400 rigs probing our country aggressively search for oil. Apparently we are “Drilling Baby”!
BNSF doesn’t think coal is dead just yet
BNSF has applied to build an 83 mile long line to carry up to 20 million tons of coal annually from a mine near Ashland, Montana owned by Arch coal. The line would cost $490 million and take 3 years to complete. Half a billion dollars is a fairly strong vote of confidence in coal for now. But landowners and environmental have more to say for sure.
For more on coal see this week’s report.