Interview: Oil spill bad for world oil supplies and U.S. economy: U.S. expert

Interview: Oil spill bad for world oil supplies and U.S. economy: U.S. expert

BP Oil Spill

Richard Wottrich was interviewed regarding the Gulf of Mexico BP oil rig spill on May 8th, 2010:

CHICAGO, May 7 (Xinhua) — The Gulf oil spill will likely kill the energy bills in the United States, reduce U.S. drillings, and increase imports of oil, which is bad for world oil supplies and U.S. economy, said a U.S. expert in Chicago on Friday.

The explosion and sinking of a BP Plc oil rig on April 20 and the subsequent massive oil spill has claimed 11 workers’ lives and contaminated waters at the Gulf of Mexico with millions of gallons of oil.

Oil is still belching thousands of barrels into the water every day and has now reached the shores of Louisiana, impacting the livelihoods of millions in the Gulf Coast states and threatens more.

In an interview with Xinhua, Richard Wottrich, managing director, international at Dresner Partners and coordinator at Centercut, Alternative Energy & Sustainability, said:“The chief negative impact regarding the Gulf oil spill is political. President (Barack) Obama recently announced certain relaxed offshore oil drilling lease availabilities and certain natural gas expansion of drilling. These initiatives are probably politically dead now.”

“This means there will be no energy bill in the U.S. prior to the (mid-term) elections in November, when the balance of control in congress may very well change. Less U.S. drilling means more imports of oil, which is bad for world oil supplies and bad for the US economy. As the US economy grows, oil imports will increase and crude prices will increase,”he further explained.

When commenting on how serious the incident is, Wottrich, who has over 30 years experience in the financial services and extensive experience in energy industry, pointed out that “the Gulf spill itself is serious, but the long term harm will be unclear for some time.”

“Hundreds of thousands of gallons of oil dispersant chemicals are being dumped into the Gulf to settle it under water before it hits shore …Therefore relatively little oil has reached land so far and that is a positive. But the long term impact of these chemicals on the Gulf’s bottom is not well understood,”he noted. Balance of article

Richard Wottrich