Offshore U.S. Drilling Proposals Bullish for National-Oilwell Varco

Congress has finally decided to consider what President Reagan had proposed in the 1980s. The opening of our coastline to oil drillers seems to be a great move in trying to keep the price of oil down. Not only will it do this but it will also help the United States with its deficit as we will import less oil. It will also provide a new stream of revenue for Exxon (XOM), ConocoPhillips (COP) and Chevron (CVX). This newfound growth will increase capital expenditures as companies scramble for growth.

The most important factor of this drilling is that it is not a want, but a need. Politicians can blame "speculators", world growth, or the filling of strategic oil reserves in China all they want: the most important issue is that we have a major problem. The spiral of oil to deficit to weak dollar needs to be corrected before faith is lost for investors in US currency. If faith is lost, massive selling could cause the dollar to free fall, although it is unlikely, but new investment in the dollar has slowed and needs to be stimulated as the mortgage crisis weighs on our economy.