Offshore Drilling Ban Ends;Renewable Energy Tax Credits Extended

The U.S. Congress has allowed a 26-year ban on offshore drilling to expire, meaning that oil exploration could soon begin along the Atlantic and Pacific coasts. Congressional Democrats, facing public anger over high gas prices in an election year, decided not to oppose the lifting of the ban. Theoretically, drilling could now take place three miles beyond the coast, but in reality the issue of where offshore drilling will occur, and what role states will play in the decision, will not be settled until the next president takes office in January. Meanwhile, the Senate has approved extending $18 billion in tax credits for renewable energy sources like wind and solar power. The House is also expected to approve the tax credits, which had been delayed by political gridlock in Washington. Prices of renewable energy stocks rose after the Senate vote.