Power hungry U.S. is expanding its domestic scanner to tap
offshore oil resources. On Friday, in a tussle of 235 to 186, the
U.S. House of Representatives passed the Offshore Energy and Jobs
Act bill. This republican backlash was the response to President
Barack Obama's coal killer climate strategy unveiled early last
week. However we are apprehensive about the final outcome of the
bill with the threat of Presidential Veto hanging high.
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The republican ire against Obama's energy moves is not new.
Earlier also the Obama Administration's 2012-2017 offshore lease
plan that closed almost 85% of U.S. offshore areas for
exploration came under republican fire.
In recent times, steady gains from adoption of new drilling and
exploring techniques has increased the domestic supply and
dramatically lowered the relative price of natural gas in the
U.S. Following this trend, President Barack Obama recently
unveiled a fresh climate change strategy affecting a number of
coal-fired plants across U.S.
The so-called coal killer policy of Obama as touted by
republicans was framed to limit pollution from existing
coal-fired power plants. With directives for setting up dearer
carbon pollution standards for active coal plants, the move at
one go would make a large number of coal-fired plants unviable.
As of now, approximately 40% of U.S. electricity is generated
from coal fired plants.
However Obama administration's focus on clean energy is
repeatedly coming under fire from republicans at a time when the
domestic economy is on shaky grounds. The apprehension about the
wrinkles in economy is also shared by us as we feel tax hikes and
spending declines is expected to slow growth in the ongoing
The republicans along with a cross section of democrats are
pushing for unlocking the offshore areas which they feel would
pump the U.S. economy with multi-million revenues and jobs. In
addition to this, it would also drag down U.S. energy cost and
trim the oil import bill.
In such a scenario, we would advise investors to keep a close
watch on oil companies that could tap the federal shores. These
Royal Dutch Shell Plc
BHP Billiton Ltd.
Anadarko Petroleum Corp.