President Bush has lifted the executive ban of offshore drilling, a move which John McCain has ludicrously linked to the recent drop in crude oil prices.

The Republicans are trying to reach the voters with a simple message: “Drill, drill, drill.” And energy expert Byron King says the message is a powerful one. It’s going to be one heck of a winter, especially when Americans have to fill up their heating oil tanks in the fall – right before the elections.

If Congress lifts its own drilling ban as well, it’s going to create a huge opportunity to profit…

Now the burden is on Congress to change the law. And the $4 gas and public pressure is swinging in favor of that… maybe not this year, though. The politicians (esp hard-left Democrats who steer policy from the top echelons) have crystallized their positions to where it’ll be hard to change over the summer, in the lead-up to the nominating convention for the new president.

Then again…

It’s going to be a heckuva winter, especially when people have to fill their heating oil tanks in the fall. Right before the election, in October, people will fill the heating tanks for the first time and get thwacked with a $4,000 bill, versus the $2,000 they paid last year. Oooooowch!!! The New England Democrats will start to feel the pain created by the vox populi. It’ll make McCain’s time at the Hanoi Hilton seem like a day at the beach. Hey, it’s turnaround.

Grudgingly, haltingly, being draged kicking & screaming, the Democrats will schedule some ceremonial vote on drilling, with all sorts of restrictions. But the idea will be that they can say “See, I voted for drilling.” Even though it’ll be some ridiculous bill that does nothing and probably makes things even worse.

Like Kevin Kerr says, even in the best of times… it’s hard to unwind 30 years of under-investment and outright neglect of a massive and complex industrial segment like offshore drilling.

The good news is that this is a gigantic investment opportunity. Hundreds of billions of $$$ are going into the OCS in the coming years. Sooner or later, the money will be moving.

More here:
http://www.msnbc.msn.com/id/25674571/

PS: Byron King is a frequent contributor to the free e-letter Whiskey & Gunpowder. To receive daily insights into energy, oil, commodities and other natural resources sign up here!

Source: US Offshore Drilling…and Politics