When it comes to risk, investors would be wise to remember that the environmental lobby will have something to say about this about-face by the Democratic party and President Obama on a long-standing moratorium on offshore drilling.
Whales won't be the only ones whose tops blow over the issue of offshore drilling in the mid-Atlantic, eastern Gulf of Mexico, and Alaska. The Department of Interior received 102 comment letters from environmental and other related interest organizations about the proposal. The Sierra Club and other powerful environmental lobbies were out quickly with positions staunchly against President Obama's proposal.
Still, the Democratic Party is trying to position the oil and gas industry carrot as a politically Machiavellian means of attaining the larger goal of comprehensive energy policy including carbon cap and trade legislation.