www.rothmanresearch.com - At the end of March 2010, President Obama aimed to boost domestic oil and gas production by lifting a 20-year ban on offshore drilling in certain regions so as to maintain economic growth and help reduce dependency on foreign oil with U.S. energy needs continuing to swell. Even though the new offshore drilling ban-lift came with certain limitations, this political decision was met with stern protests from environmentalists. Ironically, it did not take long for the debate on offshore drilling to take a dramatic momentum with the Deepwater Horizon incident which claimed the lives of eleven crew members and till date is still disgorging oil at estimated rates varying between 5,000 barrels (according to Seattle-based NOAA unit) to 19,000 barrels a day (figure released by Flow Rate Technical Group). The Deepwater Horizon oil spill is already considered as the worst in the U.S. history, and President Obama is planning a third visit to the Mexico Gulf region to emphasize the severity of this man-caused devastation.

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The Gulf of Mexico oil spill debate has taken a whole new thespian angle with a number of politicians and pro offshore drilling activists pointing fingers at environmentalists for pushing oil companies to go further offshore where drilling is potentially more risky. Whilst the notion of banning further offshore, exploratory drilling seems to look like the best feasible option to prevent any such disasters, the U.S. economic reality has far more weight at this time for the government than environment concern. However, decision makers are likely to start enforcing more rigorous regulations so as to control events leading to the recent disaster in one of the U.S.'s most prized economic zones. "Investors are looking at offshore drilling more cautiously. We believe this will be the case until BP manages to kill the spill and public opinions are less aggressive towards offshore drilling. Onshore drilling and exploration companies have recently garnered more investors' attention than usual, and this has to do largely due to the recent spill in the U.S.-controlled waters of the Gulf of Mexico. Companies like Pioneer Southwest Energy Partners L.P. (NYSE: PSE) which have non-operated working interests in onshore sites become attractive plays as they basically monetize on their assets without taking daily operational risks," commented Jack Benassi of www.rothmanresearch.com.

*Free downloadable research report on Pioneer Southwest Energy Partners L.P. is available by signing up now at http://www.rothmanresearch.com/article/pse/23558/Jun-04-2010.html

"We are seeing more and more interests by small drilling and exploration companies in the Canadian regions. The main reason is that small companies have less competition from the big players in the space and onshore provides them with more stable production base, which is usually below the production rate expectations of major companies. However, these small exploration and drilling companies can become attractive M & A prospects for large oil and gas companies. The oil sands regions of Canada are also seeing great strides and companies like Cenovus Energy Inc. (NYSE: CVE) are likely to benefit from tighter regulations in the offshore drilling space if the worse does come to be," added Benassi, senior researcher at www.rothmanresearch.com.

*Complimentary downloadable research on Cenovus Energy Inc. is accessible upon registration at http://www.rothmanresearch.com/article/cve/23559/Jun-04-2010.html

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For More Information Contact: Jack Benassi info@rothmanresearch.com

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