June 18, 2008 at 11:00 am by Tom Lydon
President Bush is calling for Congress to get on board with energy exploration, but related exchange traded funds (ETFs) are still smarting from an explosion this week at Apache (APA).
Record oil and gas prices have been sending everyone scurrying to find some kind of solution, and Bush thinks it’s in stepping up our own offshore drilling efforts, saying that it could produce up to 18 billion barrels of oil.
Don’t expect immediate relief if it starts, though, because production could be years off, reports H. Josef Hebert for the Associated Press. There are also two prohibitions on offshore drilling: one by Congress and one by executive order. Bush won’t lift the order, and he wants Congress to make the first move.
But if and when drilling is resumed, will the oil companies be in a position to accommodate the demand? Last month, we mentioned a shortage of skilled workers and equipment that was limiting how much production could actually take place.
On June 3, a gas explosion on Varanus Island put Western Australia’s gas supplies into crisis mode, reports Chalpat Sonti for WA Today. Right now, there are 140 people on the island working to begin partial production. It’s expected within the next couple months.
Today, oil prices are down slightly to $132.53, while gas demand fell 2%, sending prices lower for a second straight day, says John Wilen for the Associated Press.
Apache is 6.2% of the iShares Dow Jones US Oil & Gas Exploration (IEO), which is down in early trading and up 31.2% year-to-date.
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