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Federal offshore areas withdrawn from oil and gas leasing.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Federal offshore areas withdrawn from oil and gas leasing.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

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.

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, [1] and calling for drilling in the Arctic National Wildlife Refuge. [2]

The issue of offshore drilling became central in the 2008 presidential election, not least because of the oil price increases since 2003. It is 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. [2]

Bush's energy policy was named "drill and veto" by U.S. House Speaker Nancy Pelosi. [3] The Drill Responsibly in Leased Lands (DRILL) Act (H.R. 6515) is one of the bills discussed in the Congress about drilling. [4] In Florida, many counties, cities, chambers of commerce, and other local agencies have passed resolutions against oil drilling in Florida waters. [5]

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. [6] [7] 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. [8] In November 2010, the Obama administration rescinded the decision to open new areas. [9]

Background

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.

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. [10]

Offshore drilling has 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. [10] The existing moratorium on leasing on the Outer Continental Shelf expired in 2012, and the debate is 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 remain 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 ]

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 motivation of increased offshore drilling is to reduce the current 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. [12] 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." [13]

The Natural Resources Defense Council estimated that with increased offshore leasing and drilling, the price of oil would only drop about 3–4 cents in 15 to 20 years. [14] [ unreliable source? ]

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. [15] 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. [16]

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. [17] 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 Raul Castro attended a ceremony at which the Brazilian oil company Petrobras agreed to drill for oil in Cuban offshore waters near Florida. [18] By May 2011 Petrobas had withdrawn from the agreement due to poor prospects. [19]

More recently, Russia has begun 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. [20]

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. [21]

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. [22] 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. [23]

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. [24]

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. [25]

A more recent study conducted in 2018 by the Pew Research Center found that 51% of Americans now oppose expanded offshore oil rigs versus 42% favoring expanded offshore oil rigs. This represents 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. [26]

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 Vernier, Switzerland. The company has offices in 20 countries, including Canada, the United States, Norway, United Kingdom, India, Brazil, Singapore, Indonesia, and Malaysia.

<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 BP. On 20 April 2010, while drilling 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 22 April, the Horizon sank, leaving the well gushing at the seabed and causing the largest marine oil spill in history.

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 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">Tiber Oil Field</span> Oil field in the Gulf of Mexico

The Tiber Oil Field is a deepwater offshore oil field located in the Keathley Canyon block 102 of the United States sector of the Gulf of Mexico. The deepwater field was discovered in September 2009 and it is operated by BP. Described as a "giant" find, it is estimated to contain 4 to 6 billion barrels of oil in place. Although BP states it is too early to be sure of the size – a "huge" field is usually considered to contain 250 million barrels. It required the drilling of a 10,685 m (35,056 ft) deep well under 1,260 m (4,130 ft) of water, making it one of the deepest wells ever drilled at the time of discovery.

<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 that began in April 2010 in the Gulf of Mexico

The Deepwater Horizon oil spill was an environmental disaster which began on 20 April 2010, off the coast of the United States in the Gulf of Mexico on the BP-operated Macondo Prospect, 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 MMbbl. 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.

The National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling is a bipartisan presidential commission, established by Executive Order 13543 signed by Barack Obama on May 21, 2010, that is "tasked with providing recommendations on how the United States can prevent and mitigate the impact of any future spills that result from offshore drilling." It came about as a result of the April 2010 Deepwater Horizon oil spill. The first public hearings, held on July 12 and 13, 2010 in New Orleans, included scheduled testimony from Federal government officials and representatives of BP on the status of the spill and clean-up efforts, as well as from local officials, community leaders, and scientists on the economic, cultural and ecological impacts of the oil spill on Gulf Coast communities and ecosystems.

Timeline of the <i>Deepwater Horizon</i> oil spill

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.

<i>Discoverer Enterprise</i>

Discoverer Enterprise is a fifth generation deepwater double hulled dynamically positioned drillship owned and operated by Transocean Offshore Deepwater Drilling Inc., capable of operating in moderate environments and water depths up to 3,049 m (10,000 ft) using an 18.75 in (47.6 cm), 15,000 psi blowout preventer (BOP), and a 21 in (53 cm) outside diameter (OD) marine riser. From 1998 to 2005 the vessel was Panama-flagged and currently flies the flag of convenience of the Marshall Islands.

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.

Reactions to the <i>Deepwater Horizon</i> oil spill

Reactions to the Deepwater Horizon oil spill from various officials and interested parties ranged from blame and outrage at the damage caused by the spill, to calls for greater accountability on the part of the U.S. government and BP, including new legislation dealing with preventative security and clean-up improvements.

<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. ↑ "Bush lifts executive ban on offshore oil drilling". CNN. 2008-07-14. Retrieved 2008-09-27.
  2. 1 2 Johanna Neuman; Richard Simon. "Bush 43 urges offshore drilling that Bush 41 banned". Los Angeles Times . Retrieved 2008-09-27.
  3. ↑ "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.
  4. ↑ "Congressional Action on Gas Prices & Energy Independence". Nancy Pelosi. Archived from the original on 2008-10-02. Retrieved 2008-09-27.
  5. ↑ 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
  6. ↑ Juliet Eilperin and Anne E. Kornblut (April 1, 2010). "President Obama opens new areas to offshore drilling". The Washington Post.
  7. ↑ John M. Broder (March 30, 2010). "Obama to Open Offshore Areas to Oil Drilling for First Time". The New York Times.
  8. ↑ Kristi Keck (May 3, 2010). "Could oil spill sap appetite for Obama's offshore drilling plans?". CNN.
  9. ↑ John M. Broder and Clifford Krauss (December 1, 2010). "U.S. Halts Plan to Drill in Eastern Gulf". New York Times.
  10. 1 2 Steven Mufson (2008-07-14). "Offshore Drilling Backed as Remedy for Oil Prices". Washington Post. Retrieved 2008-09-27.
  11. ↑ Compton, Glenn, 10 Reasons Not to Drill for Oil Offshore of Florida , The Bradenton Times, Sunday, January 14, 2018
  12. ↑ The Oil Drum. "Presidential Energy Debate Fact Check #1: Is Offshore Drilling the Answer?". The Oil Drum. Retrieved 2010-06-04.
  13. ↑ "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.
  14. ↑ Metropulos, Jim (2008-07-15). "California Knows: Offshore Drilling Doesn't Make 'Cents'". Sierra Club California. Retrieved 2010-12-23.
  15. ↑ "Oil Price". Business Insider. 2018-03-07. Retrieved 2018-03-07.
  16. ↑ "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.
  17. ↑ Time (23 October 2008): How Cuba's oil could change the US embargo. Retrieved 17 December 2008.
  18. ↑ "Petrobras signs with Cuba", World Oil, December 2008, p.109.
  19. ↑ "Petrobas abandons oil exploration in Cuba". MercoPress. Retrieved 22 March 2014.
  20. ↑ "Sanctions-Proof Oil Rig Thwarts U.S. Policy From Cuba to Russia". Bloomberg.
  21. ↑ Urbina, Ian (2010-05-13). "U.S. Said to Allow Drilling Without Needed Permits". The New York Times. Retrieved 2010-05-26.
  22. ↑ "BP TO BE SUED OVER HARM TO ENDANGERED SPECIES". Defenders.org. 2010-05-25.
  23. ↑ Pew Research Center, As prices pinch, support for oil and gas production grows, 19 Mar. 2012.
  24. ↑ CNN Opinion Research Corp., , 19 Apr. 2011.
  25. ↑ Lydia Saad, U.S. Oil drilling gains favor with Americans, Gallup, 14 Mar. 2011.
  26. ↑ Bradley Jones, UMore Americans oppose than favor increased offshore drilling, Pew Research Center, 15 Jan. 2018.
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