Now, as oil prices continue to climb, Salazar says that he hopes to approve a "significant" number of offshore drilling permits. On Monday, The U.S. Interior department approved drilling at a deepwater well co-owned by Noble Energy and BP. Salazar told the Senate Energy and Natural Resources committee that:
The funny part is – if you can find the dark humor in all of this – that even though Salazar is intent on increasing deepwater drilling efforts, he admits that expansion is unlikely to impact world oil prices:There are other deepwater permits that are pending and the ones that will go out the door will hopefully be the templates that will allow us to move forward with an additional, significant number of deepwater permits.
U.S. Energy Secretary Steven Chu agreed with Salazar's statement, claiming that expansion in offshore drilling would have no near-term impact on oil prices.We do not produce enough oil in this country to influence price of oil because it's set in world markets.
[Source: Reuters | Image: mikebaird – C.C. License 2.0]