Gulf of Mexico drilling to continue back

Deep water drilling may resume in the Gulf of Mexico, according to the White House’s plans, announced yesterday.

The Obama administration may give the go-ahead to for as many as 16 projects, potentially subject to additional safety rules.

The administration’s ban on drilling ended in October, but it had not approved any permits in the interim. The Wall Street Journal reported today drilling could resume in a matter of weeks.

Also today, U.K. newspaper The Daily Mail is reporting that Royal Dutch Shell (RDSa) had been pondering a takeover of BP (NYSE:BP) following the Deepwater Horizon explosion and oil spill in the Gulf of Mexico. The newspaper suggested that Shell may still make a bid.

BP shares are trading up 2.8% today, while Shell shares trade up .8%.

Chevron (NYSE:CVX) shares are trading down .2%, while Exxon Mobil (NYSE:XOM) shares trade up .3%.


Source: http://www.businessday.com.au/business/gulf-drilling-can-resume-20110104-19f23.html