Big Oil resets its sights on Gulf of Mexico

[marmar]

NEW YORK (AP) -- Big Oil is ready to go back to work in the Gulf of Mexico, even with the U.S government promising to rule the waters with a heavier hand.

Chevron, Exxon, Royal Dutch Shell are willing to endure the additional time to secure permits and extra costs that will result from new government regulations because they've come to depend on deepwater drilling to replenish their reserves. The companies outlined plans for the Gulf this week as most of them reported improved earnings for the third quarter.

These big oil and gas companies know the geology of the Gulf much better than other parts of the world. Taxes and royalties for projects in U.S. waters are considered to be much lower than foreign operations, and it's much easier and cheaper to deliver the oil to the consumer.

"It's one-stop shopping," said Fadel Gheit, an analyst with Oppenheimer & Co. "When you're working in the Gulf, you're sitting in the belly of the largest energy-consuming economy in the world." ............(more)

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