Though the oil is dissipated, the lacklustre policies still linger
The recent months have been less than warm and friendly for the energy stocks in the US, as the global recession and the disastrous BP Gulf of Mexico spill have delivered tremendous blows to the once- mighty industry. The market for the fuel has been extremely volatile in these months, with the dubious states of moratoriums laid upon new exploration rights, calls for more stringent safety procedures and perpetual blame shifting happening throughout the industry have all brought in mighty doses of fluctuation and uncertainty to the its stocks.
The response to the catastrophic spill from Washington has also been a rather erratic one. The administration quickly established a total moratorium, prohibiting all new drilling operations from taking place, as well as threatening the industry with brutal tax hikes, all the while strengthening its already heavy reliance on foreign oil suppliers such as the Chinese Sinopec, the Brazilian Petrobras and the ill- fated BP from the UK.
Now that most of the spilled oil has either been cleaned up or has dissipated on its own, thanks to the countless myriads of tiny microscopic organisms inhabiting the Gulf’s waters; it has become increasingly easier to properly and thoroughly look into the ailing industry and the shortcomings that allowed for the massive accident to happen so suddenly and swiftly.
These dispersants who have previously been a controversial issue with the public and Congress have ensured a total safety of tar balls, stray oil plumes and other inconveniences and setbacks that usually plague larger- scale oil spills.
While the well is being capped and the water cleaned, the nation’s administration has been in discussions pertaining to the industry and its future post- the Gulf.
The Obama administration has recently drawn up a proposal for a brand new tax hike that would severely impeded domestic fuel production, rather tipping the economic scales in the direction of the nation’s foreign oil suppliers. The new tax would also signify that US fuel suppliers wielding business in other nations will see their taxes increase twofold. The measure, if approved would mark the very first time in history when a business venture would be required to pay taxes both on the home front and internationally. That system would also ensure that many of the industry’s lucrative job offers would float overseas, rather than remain on American soil.
This taxing system, along with several other panicked and rushed proposals churned out by the current government as it rallies to take action in the face of the recession and the spill are all extremely disadvantageous, as they essentially render the US powerless, in taking profitable opportunities from the nation and relocating them overseas.