Friday, May 14, 2010

Citigroup (NYSE:C) on Government Oil Drilling Ban

Citigroup (NYSE:C) said today that a new ban on oil drilling permits would end up losing from 80,000 to 100,000 of barrels of oil equivalent a day.

These were based on estimates made from Wood Mackenzie Consultants.

It never fails that the government will step in with knee-jerk reactions like this based on one incident.

Sure it's tragic what happened in the Gulf, as the Deepwater Horizon explosion claimed 11 lives, and then fell to the bottom of the ocean floor, which resulted in the oil spill now attempted to be contained, but to stop all exploration and drilling permits does absolutely nothing.

This is part of doing business and providing fuel and energy for people. There is no way to make something perfect in this world, although it's a good thing to do everything to the highest level a business can to prevent something like this from happening.

What would be better would be to heighten efforts to improve all elements and products used on the oil drilling rigs in order to improve their performance even more.

When you consider that accidents at this level are extremely rare and have only happened several times in history, the idea that we need to shut things down as if it's an imminent danger is ignorant at best.

All we can do is do the very best we can to ensure a minimum number of these types of accidents happen. It's called being human. And that means there will sometimes be mistakes. No legislation in the world can ever change that from being the reality we live in, and always will live in.

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