United States offshore drilling debate

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Federal offshore areas withdrawn from oil and gas leasing. WithdrawnOffshoreAreas.jpg
Federal offshore areas withdrawn from oil and gas leasing.

The United States offshore drilling debate is an ongoing debate in the United States about whether, the extent to which, in which areas, and under what conditions, further offshore drilling should be allowed in U.S.-administered waters. It is being debated in terms of both environmental issues and U.S. energy independence.

Contents

Oil drilling platform about two miles (3 km) off the coast of California, near Santa Barbara. PlatformHolly.jpg
Oil drilling platform about two miles (3 km) off the coast of California, near Santa Barbara.

In 1969 drilling bans were established for offshore California and Florida, and in 1990 President George H. W. Bush banned offshore drilling entirely. Nevertheless, offshore drilling continued in offshore Texas and Louisiana.

Offshore drilling became central in the 2008 presidential election, not least because of the oil price increases since 2003. George W. Bush lifted the oil drilling ban and also President Barack Obama was for limited offshore drilling. The Obama administration opened new areas in U.S. coastal waters to offshore drilling for gas and oil in March 2010, despite the recent Deepwater Horizon explosion and Deepwater Horizon oil spill in the Gulf of Mexico but rescinded the decision in November. In 2018, Trump launched an initiative to expand offshore drilling, excluding Florida. Under President Biden oil and gas leasing in certain arctic areas was prohibited as of 2023, but in January 2025, President Trump revoked that order.

As interpreted by the federal courts, the Commerce Clause of the United States Constitution gives the federal government certain regulatory power over "navigable waters" of the United States. The Submerged Lands Act of 1953 and Continental Shelf Lands Act of 1953, along with the 1960 Supreme Court decision in United States v. States of Louisiana, Texas, Mississippi, Alabama, and Florida, divided ownership of the tidelands of the United States between state and federal governments. States own the sea and seabed out to 3.5 miles (5.6 km), except Texas and Florida which own out to 10.5 miles (16.9 km). The federal government owns the remainder of the territorial waters.

History

The 28 January 1969 blowout at a Unocal rig, which spilled 3 million US gallons (11,000 m3) of petroleum off the coast of Santa Barbara, California, resulted in drilling bans in offshore California and Florida. [1]

Offshore drilling continued in offshore Texas and Louisiana. In 2006, an 8,300,000-acre (34,000 km2) area in the Gulf of Mexico known as lease 181 was opened for exploration. [1]

The issue saw increased coverage when President George W. Bush, in July 2008, lifted a 1990 executive order by his father, President George H. W. Bush, banning offshore drilling, [2] and called for drilling in the Arctic National Wildlife Refuge. [3]

Offshore drilling became central in the 2008 presidential election, not least because of the oil price increases since 2003. It was also being debated in terms of both environmental issues and U.S. energy independence. As of September 2008, President Barack Obama was for limited offshore drilling as part of an extensive energy independence overhaul. [3]

U.S. House Speaker Nancy Pelosi called Bush's energy policy "drill and veto". [4] The Drill Responsibly in Leased Lands (DRILL) Act (H.R. 6515) was one of the bills discussed in the Congress about drilling. [5] In Florida, many counties, cities, chambers of commerce, and other local agencies passed resolutions against oil drilling in Florida waters. [6]

On March 31, 2010, President Obama announced that he was opening new areas in U.S. coastal waters to offshore drilling for gas and oil. [7] [8] This was in stark contrast to his reaction only a few weeks later to the Deepwater Horizon explosion and Deepwater Horizon oil spill in the Gulf of Mexico that became the biggest environmental disaster in US history. [9] In November 2010, the Obama administration rescinded the decision to open new areas. [10]

A moratorium on leasing on the Outer Continental Shelf expired in 2012, and a debate started on whether or not to extend it.[ citation needed ]

In 2018, a new federal initiative to expand offshore drilling suddenly excluded Florida, but although this would be favored by Floridians, concerns remained about the basis for that apparently arbitrary exception being merely politically motivated and tentative. No scientific, military, or economic basis for the decision was given, provoking continuing public concern in Florida. [11] [ failed verification ]

In 2023, President Biden signed a Memorandum of March 13, 2023 prohibiting oil and gas leasing in certain arctic areas of the Outer Continental Shelf (Withdrawal of Certain Areas off the United States Arctic Coast of the Outer Continental Shelf from Oil or Gas Leasing). However, in January 2025, President Trump revoked that order, [12] and opened up leases within the Arctic National Wildlife Refuge relating to the coastal plain oil and gas leasing program. [13]

Positive effects

Energy independence

Imported crude oil as a percent of U.S. consumption. Imported Crude Oil as a Percent of US Consumption 1950-2003.jpg
Imported crude oil as a percent of U.S. consumption.

A common argument in favor of offshore drilling is it reduces United States dependency on imported oil. Geopolitically, the U.S. would be less vulnerable to sanctions by oil-producing countries hostile to the United States.[ citation needed ] It would also make the United States less vulnerable to a stop in a country's oil exports, due to, for example, a civil war or an invasion of that country. The debate often makes references to the 1973 oil crisis and 1979 energy crisis.

Fuel price

One argument for increased offshore drilling has been to reduce fuel prices. In 2007, the Energy Information Administration at the U.S. Dep. of Energy analyzed the effect of lifting the ban on oil and gas leasing on the Atlantic and Pacific coasts and the eastern Gulf of Mexico. [14] With leasing beginning in 2012, the agency projected that production of oil would not be expected to start before 2017, and that as a result US oil production by 2030 would be 7% higher than it would be otherwise. The effect on fuel prices, however, would be "insignificant." [15]

The Natural Resources Defense Council, an environmental advocacy group, estimated that with increased offshore leasing and drilling, the price of oil would only drop about 3–4 cents in 15 to 20 years. [16]

Trade deficit

Oil produced from offshore drilling reduces oil imports, and thus lessens the U.S. trade deficit. From mid-2017 to early 2018, crude oil imports increased from $45 per barrel to $62 per barrel. [17] Rising oil prices have driven some with U.S. oil stakeholders to argue all options must be considered to reduce the national deficit; including expanded national oil production.

Negative effects

Military training

In 2005, U.S. Defense Secretary Donald Rumsfeld stated that offshore drilling would disrupt military training and weapons testing, if done in an area of the Gulf of Mexico along the coast of Florida. [18]

International relations

Although offshore drilling has long been banned in federal waters off the state of Florida, Cuba has been drilling its own offshore area near Florida. [19] The subject became an issue in the 2008 presidential race, with assertions and denials of the reality of Cuban offshore drilling. On 31 October 2008, Brazilian and Cuban presidents Luiz Inácio Lula da Silva and Raúl Castro attended a ceremony at which the Brazilian oil company Petrobras agreed to drill for oil in Cuban offshore waters near Florida. [20] By May 2011 Petrobas had withdrawn from the agreement due to poor prospects. [21]

In 2017, Russia began drilling in the Black Sea with a Chinese-made oil rig, Scarabeo 9. Since the rig wasn't built in the U.S. and was agreed to before the imposition of additional sanctions by the E.U. in 2014, Russia has been able to avoid sanctions and operate the rig. [22]

Oil spills

Offshore facilities pose an environmental risk of oil spills. On April 20, 2010, an underwater blowout and subsequent explosion and fire destroyed the Deepwater Horizon rig owned by Transocean Ltd. and operating in the Gulf of Mexico under lease to energy giant BP, resulting in the largest oil spill in United States history. Five million barrels of oil were spilled into the Gulf of Mexico, leading to $21.5 billion (or $4300 per barrel) of clean-up costs paid by BP.

BP Oil spill costs broken down by category BP Oil spill Costs.jpg
BP Oil spill costs broken down by category

Endangered species

As of 2010, the federal Minerals Management Service had given permission to BP and dozens of other oil companies to drill in the Gulf of Mexico without first getting required permits that assesses threats to endangered species. [23]

In the aftermath of the Deepwater Horizon explosion, aka BP Oil spill, Defenders of Wildlife and the Southern Environmental Law Center sued BP for imperiling 32 threatened or endangered species. These included the sperm whale, gulf sturgeon, manatee and five kinds of sea turtles, in addition to the surrounding water and habitats that were damaged. [24] With every oil spill, endangered species in the area get closer to extinction.

Public opinion

Polls by independent national polling concerns in the US generally show fluctuating public opinions of offshore drilling in the last decade.

The Pew Research Center, which had documented a large and sharp drop in support for allowing more offshore drilling following the Deepwater Horizon spill in 2010 (down to 44% in favor versus 52% against), found that by March 2012, support for increased offshore drilling had returned to its pre-Deepwater Horizon level, with 65% in favor versus 31% against. [25]

A series of CNN polls 2008-2011 showed that support for increased offshore drilling dropped from 75% before the Deepwater Horizon spill to 57% shortly after. By April 2011, support had increased to 69%, versus 31% opposed. [26]

The Gallup organization found 50% support for increased offshore drilling in May 2010, a month after the Deepwater Horizon explosion. By March 2011, that support had increased to 60% in favor versus 37% opposed. [27]

A 2018 Pew Research Center study found that 51% of Americans opposed expanded offshore oil rigs versus 42% favoring expanded offshore oil rigs. This represented a 10% decline in those favoring offshore oil rigs since 2014. Generally, people who live within 25 miles of the coastline oppose offshore oil drilling more so than those who live farther from the coast. Also, Democrats oppose additional rig development at a rate of 71%, while only 22% of Democrats favor more offshore oil rigs. On the other hand, 70% of Republicans favor increased offshore drilling in comparison to 25% opposition. Lastly, younger people (aged 18–49) oppose increased offshore drilling at a rate of 58%, compared to only 42% opposition for people aged older than 49. [28]

See also

Related Research Articles

<span class="mw-page-title-main">Transocean</span> Offshore drilling contractor

Transocean Ltd. is an American drilling company. It is the world's largest offshore drilling contractor based on revenue and is based in Steinhausen, Switzerland. The company has offices in 20 countries, including Canada, the United States, Norway, United Kingdom, India, Brazil, Singapore, Indonesia, and Malaysia.

<span class="mw-page-title-main">Minerals Management Service</span> Former United States government agency

The Minerals Management Service (MMS) was an agency of the United States Department of the Interior that managed the nation's natural gas, oil and other mineral resources on the outer continental shelf (OCS).

<span class="mw-page-title-main">Offshore drilling</span> Mechanical process where a wellbore is drilled below the seabed

Offshore drilling is a mechanical process where a wellbore is drilled below the seabed. It is typically carried out in order to explore for and subsequently extract petroleum that lies in rock formations beneath the seabed. Most commonly, the term is used to describe drilling activities on the continental shelf, though the term can also be applied to drilling in lakes, inshore waters and inland seas.

<i>Deepwater Horizon</i> Former offshore oil drilling rig

Deepwater Horizon was an ultra-deepwater, dynamically positioned, semi-submersible offshore drilling rig owned by Transocean and operated by the BP company. On 20 April 2010, while drilling in the Gulf of Mexico at the Macondo Prospect, a blowout caused an explosion on the rig that killed 11 crewmen and ignited a fireball visible from 40 miles (64 km) away. The fire was inextinguishable and, two days later, on April 22, the Horizon collapsed, leaving the well gushing at the seabed and becoming the largest marine oil spill in history.

<span class="mw-page-title-main">Deepwater drilling</span> Using a drilling rig to bore holes for petroleum extraction in deep sea

Deepwater drilling, or deep well drilling, is the process of creating holes in the Earth's crust using a drilling rig for oil extraction under the deep sea. There are approximately 3400 deepwater wells in the Gulf of Mexico with depths greater than 150 meters.

<span class="mw-page-title-main">Oil reserves in Cuba</span>

Estimates of total oil reserves in Cuba are varied, and depend mainly on estimations of undiscovered offshore deposits in the North Cuba Basin. Proved crude oil reserves were 124 million barrels as of 2013.

<span class="mw-page-title-main">Offshore oil and gas in the United States</span> Large portion of oil and gas supply

Offshore oil and gas in the United States provides a large portion of the nation’s oil and gas supply. Large oil and gas reservoirs are found under the sea offshore from Louisiana, Texas, California, and Alaska. Environmental concerns have prevented or restricted offshore drilling in some areas, and the issue has been hotly debated at the local and national levels.

<span class="mw-page-title-main">Offshore oil and gas in California</span> Drilling in state and federal zones

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<span class="mw-page-title-main">Offshore drilling on the Atlantic coast of the United States</span>

Offshore drilling for oil and gas on the Atlantic coast of the United States took place from 1947 to the early 1980s. Oil companies drilled five wells in Atlantic Florida state waters and 51 exploratory wells on federal leases on the outer continental shelf of the Atlantic coast. None of the wells were completed as producing wells. All the leases have now reverted to the government.

<span class="mw-page-title-main">Offshore oil and gas in the Gulf of Mexico (United States)</span> Major petroleum-producing area

Offshore oil and gas in the Gulf of Mexico is a major source of oil and natural gas in the United States. The western and central Gulf of Mexico, which includes offshore Texas, Louisiana, Mississippi, and Alabama, is one of the major petroleum-producing areas of the United States. Oil production from US federal waters in the Gulf of Mexico reached an all-time annual high of 1.65 million barrels per day in 2017. Oil production is expected to continue the upward trend in 2018 and 2019, based on ten new oil fields which are planned to start production in those years. According to the Energy Information Administration, "Gulf of Mexico federal offshore oil production accounts for 15% of total U.S. crude oil production and federal offshore natural gas production in the Gulf accounts for 5% of total U.S. dry production."

<i>Deepwater Horizon</i> oil spill Oil spill in the Gulf of Mexico

The 2010 oil spill from Deepwater Horizon was an environmental disaster off the coast of the United States in the Gulf of Mexico, on the BP-operated Macondo Prospect. It is considered the largest marine oil spill in the history of the petroleum industry and estimated to be 8 to 31 percent larger in volume than the previous largest, the Ixtoc I oil spill, also in the Gulf of Mexico. Caused in the aftermath of a blowout and explosion on the Deepwater Horizon oil platform, the United States federal government estimated the total discharge at 4.9 million barrels. After several failed efforts to contain the flow, the well was declared sealed on 19 September 2010. Reports in early 2012 indicated that the well site was still leaking. The Deepwater Horizon oil spill is regarded as one of the largest environmental disasters in world history.

The Macondo Prospect is an oil and gas prospect in the United States Exclusive Economic Zone of the Gulf of Mexico, off the coast of Louisiana. The prospect was the site of the Deepwater Horizon drilling rig explosion in April 2010 that led to a major oil spill in the region from the first exploration well, named itself MC252-1, which had been designed to investigate the existence of the prospect.

<i>Deepwater Horizon</i> explosion 2010 oil disaster in the Gulf of Mexico

On April 20, 2010, an explosion and fire occurred on the Deepwater Horizon semi-submersible mobile offshore drilling unit, which was owned and operated by Transocean and drilling for BP in the Macondo Prospect oil field about 40 miles (64 km) southeast off the Louisiana coast. The explosion and subsequent fire resulted in the sinking of the Deepwater Horizon and the deaths of 11 workers; 17 others were injured. The same blowout that caused the explosion also caused an oil well fire and a massive offshore oil spill in the Gulf of Mexico, considered the largest accidental marine oil spill in the world, and the largest environmental disaster in United States history.

Timeline of the <i>Deepwater Horizon</i> oil spill Events around the oil spill in the Gulf of Mexico

The following is a timeline of the Deepwater Horizon oil spill. It was a massive oil spill in the Gulf of Mexico, the largest offshore spill in U.S. history. It was a result of the well blowout that began with the Deepwater Horizon drilling rig explosion on April 20, 2010.

Economic effects of the <i>Deepwater Horizon</i> oil spill

This article covers the effect of the Deepwater Horizon disaster and the resulting oil spill on global and national economies and the energy industry.

On May 30, 2010 a 6-month moratorium on all deepwater offshore drilling on the Outer Continental Shelf was declared by U.S. Secretary of the Interior Ken Salazar. The limitation was in response to the Deepwater Horizon oil spill which occurred in the Gulf of Mexico.

Following is a timeline of the Deepwater Horizon oil spill for June 2010.

Following is a timeline of the Deepwater Horizon oil spill for July 2010.

Following is a Timeline of the Deepwater Horizon oil spill for May 2010.

<i>Deepwater Horizon</i> investigation

The Deepwater Horizon investigation included several investigations and commissions, among others reports by National Incident Commander Thad Allen, United States Coast Guard, National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, Bureau of Ocean Energy Management, Regulation and Enforcement, National Academy of Engineering, National Research Council, Government Accountability Office, National Oil Spill Commission, and Chemical Safety and Hazard Investigation Board.

References

  1. 1 2 Steven Mufson (2008-07-14). "Offshore Drilling Backed as Remedy for Oil Prices". Washington Post. Retrieved 2008-09-27.
  2. ↑ "Bush lifts executive ban on offshore oil drilling". CNN. 2008-07-14. Retrieved 2008-09-27.
  3. 1 2 Johanna Neuman; Richard Simon. "Bush 43 urges offshore drilling that Bush 41 banned". Los Angeles Times . Retrieved 2008-09-27.
  4. ↑ "Pelosi: Bush Administration's Energy Policy is 'Drill and Veto'". United States House of Representatives. Archived from the original on 2008-08-02. Retrieved 2008-09-27.
  5. ↑ "Congressional Action on Gas Prices & Energy Independence". Nancy Pelosi. Archived from the original on 2008-10-02. Retrieved 2008-09-27.
  6. ↑ Map of Resolutions Passed Against Offshore Oil Drilling in Florida http://www.google.com/maps/ms?ie=UTF8&hl=en&msa=0&msid=106172446447503097421.000480838fe1fe5d92709&z=6
  7. ↑ Juliet Eilperin and Anne E. Kornblut (April 1, 2010). "President Obama opens new areas to offshore drilling". The Washington Post.
  8. ↑ John M. Broder (March 30, 2010). "Obama to Open Offshore Areas to Oil Drilling for First Time". The New York Times.
  9. ↑ Kristi Keck (May 3, 2010). "Could oil spill sap appetite for Obama's offshore drilling plans?". CNN.
  10. ↑ John M. Broder and Clifford Krauss (December 1, 2010). "U.S. Halts Plan to Drill in Eastern Gulf". New York Times.
  11. ↑ Compton, Glenn, 10 Reasons Not to Drill for Oil Offshore of Florida , The Bradenton Times, Sunday, January 14, 2018
  12. ↑ "Initial Rescissions Of Harmful Executive Orders And Actions". The White House. 2025-01-20. Retrieved 2025-01-23.
  13. ↑ "Unleashing Alaska's Extraordinary Resource Potential". The White House. 2025-01-21. Retrieved 2025-01-23.
  14. ↑ The Oil Drum. "Presidential Energy Debate Fact Check #1: Is Offshore Drilling the Answer?". The Oil Drum. Retrieved 2010-06-04.
  15. ↑ "EIA - Impacts of Increased Access to Oil and Natural Gas Resources in the Lower 48 Federal Outer Continental Shelf". Eia.doe.gov. 2003-01-01. Retrieved 2010-06-04.
  16. ↑ Metropulos, Jim (2008-07-15). "California Knows: Offshore Drilling Doesn't Make 'Cents'". Sierra Club California. Retrieved 2010-12-23.
  17. ↑ "Oil Price". Business Insider. 2018-03-07. Retrieved 2018-03-07.
  18. ↑ "Alexander's Gas & Oil Connections - Offshore drilling is incompatible with military missions in Gulf of Mexico". Gasandoil.com. 2005-12-22. Retrieved 2010-06-04.
  19. ↑ Time (23 October 2008): How Cuba's oil could change the US embargo. Retrieved 17 December 2008.
  20. ↑ "Petrobras signs with Cuba", World Oil, December 2008, p.109.
  21. ↑ "Petrobas abandons oil exploration in Cuba". MercoPress. Retrieved 22 March 2014.
  22. ↑ "Sanctions-Proof Oil Rig Thwarts U.S. Policy From Cuba to Russia". Bloomberg.
  23. ↑ Urbina, Ian (2010-05-13). "U.S. Said to Allow Drilling Without Needed Permits". The New York Times. Retrieved 2010-05-26.
  24. ↑ "BP TO BE SUED OVER HARM TO ENDANGERED SPECIES". Defenders.org. 2010-05-25.
  25. ↑ Pew Research Center, As prices pinch, support for oil and gas production grows, 19 Mar. 2012.
  26. ↑ CNN Opinion Research Corp., , 19 Apr. 2011.
  27. ↑ Lydia Saad, U.S. Oil drilling gains favor with Americans, Gallup, 14 Mar. 2011.
  28. ↑ Bradley Jones, More Americans oppose than favor increased offshore drilling, Pew Research Center, 15 Jan. 2018.
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