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Debunking the Offshore Drilling Myth

Monday, 23 Jun 2008 | 6:11 PM ET

The debate over offshore drilling in the U.S. is moot, Cramer told viewers Monday.

Coming Clean
An outlook on drilling for oil, with Mad Money host Jim Cramer.

The overwhelming concern of environmentalists who fear a massive oil spill is all for naught. Drilling technology – built right here at home – has so advanced as to make the possibility of an eco-disaster virtually nil. If other countries across the globe are digging for oil off their respective coastlines without consequence, why aren’t we?

Cramer pointed to a 1969 spill, off the coast of Santa Barbara, Calif., that set in motion this hyper-negative attitude toward offshore drilling. A pipe removal from a well caused a pressure change so powerful it cracked the sea floor, spilling about 3 million gallons of crude.

But what happened then could never happen today, Cramer said. The technology at our disposal now is capable of controlling and managing an oil well’s pressure. We have subsea trees – FMC Technologies makes them – to regulate the process. We even have 4-D seismic technology to ensure safe drilling.

“This is not a dirty, dangerous endeavor anymore,” Cramer said.

What’s at stake? How about a potential 18 billion barrels of oil and 76 cubic feet of natural gas in these areas where offshore drilling is not allowed. That’s big business for more than just a few companies.

So all week’s Cramer will highlight the companies that make clean offshore drilling a reality. Keep checking back to find out who they are.


Questions for Cramer? madmoney@cnbc.com

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