How big is the Gulf of Mexico oil find announced last week by Exxon Mobil? BIG. As in a projected 700 million barrels and as Houston-based industry analyst John White reminds us: "Seven hundred million barrels doesn't happen very often...That's a lot of oil."

Yes, and it's also a spectacular illustration of what can happen when the energy industry is allowed to search for and develop American resources - in this case a reservoir of oil more than a mile underwater, in Exxon's Keathley Canyon blocks, about 250 miles southwest of New Orleans. The discovering well is one of only 15 new wells allowed by the federal government since a moratorium on deepwater drilling was lifted in October.

Finds like Exxon's Keathley Canyon, Shell's Cardamom field (estimated 140 million barrels) and others, on a... more »

You'd think that with the polls showing the administration is taking the blame for higher gasoline prices, the White House economic team would come up with something better to say to the American people than let's raise energy taxes by eliminating business deductions that historically have helped encourage domestic production. The president laid down his marker this week in a letter to congressional leaders, calling for the elimination of tax breaks he says are worth $4 billion a year. The New York Times reports the administration is targeting a deduction for intangible drilling costs and the oil and gas depletion allowance. Don't be surprised if it looks at other provisions as well.

How does the public feel about this? Let's have a listen:

Over the next few days we'll look at some of t... more »

For the past couple of years, U.S. policymakers have been debating two different ways of addressing this country's energy needs. Some politicians believe the United States should embrace the development of alternative energy resources, including wind, solar and biofuels. Others say America should focus on domestic fossil fuels because alternative energy sources are not as affordable or efficient as coal, oil and natural gas.

Which approach is the best course of action?

Marc D. Weidenmier of the American Enterprise Institute for Public Policy Research examines this question in a new study. He asserts that the recent clamor for alternative energy has been driven by record-setting crude oil prices in the summer of 2008, and he analyzes the impact of oil price spikes on the U.S. economy. Weide... more »

A new Gallup poll shows Americans are divided down the middle over whether to lift the deepwater drilling moratorium. Overall, 47 percent of respondents say the ban should be lifted, while 46 percent say it should remain in place.

Interestingly, the poll also shows 64 percent of Democrats say the drilling freeze should continue, while 66 percent of Republicans favor removing the moratorium.

Political leanings aside, there's no doubt that the moratorium and the Department of the Interior's new offshore regulations are having a severe impact on oil and natural gas development. Vladimir at RedState points out that while our elected officials say they want energy independence, the "virtual shutdown of the Gulf of Mexico oil and gas business is the biggest, most dramatic retrenchment from that... more »