Cramer welcomed Rep. John Peterson, a Republican from Pennsylvania to the show to discuss his proposal to extend offshore drilling from 50 miles to 200 miles off the U.S. coastline. Analysts think that 8.5 billion barrels of oil and 29 trillion cubic feet of natural gas and even larger potential undiscovered reserves are located within the areas Peterson wants to drill. Unfortunately, the bill didn’t pass a congress subcommittee today. Cramer said the legislation would have been a boon form companies like Transocean (RIG), National Oilwell Varco (NOV), FMC Technologies (FTI) and Schlumberger (SLB), along with natural gas firms like Apache (APA), Anadarko (APC), Chesapeake (CHK) and Devon (DVN). Peterson told Cramer he was surprised the bill didn’t pass. “There’s a lot of members of the committee that were learning toward voting for it,” Peterson said. “There were some who had voted for it in the past, But in the end Pelosi power prevailed,” he said. Peterson explained that the bill still has two chances to pass. First it could pass the full Appropriations committee next Wednesday, or it could pass the floor of the house. He went on to say that the U.S. is now 67% dependent on foreign oil, and if we don’t do something about soon we will be 80% dependent. Peterson feels it makes sense to drill along the outer continental shelf with oil at $137. He also mentioned that the U.S. use to keep 8 million to 10 million barrels of oil for emergency situations. However, that is not the case today, and Peterson said if something catastrophic like a hurricane, terrorist attack or other supply disruption issues happens oil will hit $200 or higher. Cramer said Peterson is right and he advised viewers to write their congressman to support his legislation.
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