Posted By Colin Doyle June 7th, 2010
While the gulf forever drowns in BP's black gold and the surrounding economies suffer from this epic environmental disaster the major question is....
What type of potentially ill-conceived public policy reaction will come out of Washington? Media coverage has slowly turned this into a political crisis for Obama. Two things are now certain.
1) President Obama is a master politician who will do everything to ensure he remains exonerated from any responsibility for the mess.
2) President Obama is going to be reigning in offshore drilling and increasing regulation on the broader sector. It's the only way to spin this crisis in a positive direction for his administration.
Long term, offshore drilling in the gulf is too lucrative for the government to not allow, but there will be new rules. Overhead costs will change for drillers and they won't be able to explore without paying big brother BIG money. The greater narrative here is how (if at all) to determine if these new hurdles will significantly change the drilling business in the Gulf.
BP's stock chart since the spill...
Chart courtesy of AOL.
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