deep offshore drilling
Post on 05-Jan-2016
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By: Wynne, Dina, and Jess
Definition: oil gas resources that lie deep underwater.
Can’t fully depend on Middle East. Becoming more & more successful. Environmental challenges (Arctic). Ongoing debate over effect on environment. North Sea, Gulf of Mexico, Brazil,
Newfoundland, Nova Scotia, West Africa, South East Asia & Russia.
The Perdido (Gulf of Mexico) Transocean, Diamond Offshore Drilling, Bronco
Drilling, Precise Drilling Trust.
1880s-1950s: Grows in importance. 1960s-1980s: Domestic oil production peaks-
OPEC embargo. 1990s: Aftermath of Exxon Valdez spill, gov
tightens up on offshore drilling policy. 1990: Oil Pollution Act, GHWB restricts offshore
drilling to TX, Louisiana, Alabama & Alaska. 2007: GWB: Bristol Bay 2008: Reverses his father’s moratorium on
offshore drilling, Congress allows ban to expire. 2010: BP spill in Gulf of Mexico.
1953 Submerged Lands Act (SLA). States given jurisdiction over any natural resources
within 3 nautical miles (3.45 miles). Exception: Texas & FLA’s west coast: extends the
States’ Gulf of Mexico jurisdiction 9 nautical miles (10.35 miles).
1953 Outer Continental Shelf Act Outer Continental Shelf (OCS): submerged land
outside state jurisdiction. Reaffirmed Federal jurisdiction over OCS & resources
they contain. Outlined federal responsibilities for managing offshore
lands subject to environmental constraints and safety concerns.
1978-1998 amended 6 times.
(Reagan) 1983 Proclamation 5030: U.S. Exclusive Economic Zone (EEZ). Claimed rights for the United States to all waters up to
200 nautical miles (230 miles) from the U.S. coastline. 1994 International Law of the Sea: 200 nautical miles.
Acts to protect coastal & marine communities National Environmental Policy Act of 1969 Coastal Zone Management Act of 1972 Clean Water Act of 1977 Federal Oil and Gas Royalty Act of 1982 National Fishing Enhancement Act of 1984
Supporting our country’s oil production
Provides jobsDecreases oil pricesPromotes our energy independence
Environmentalists argue alternative energy sources
Unearths contain toxic metals (mercury, lead, and cadmium)
Threatens beaches and wildlife with oil spills
Can cause economic harm
Stream of pollution: health &reproductive problems for marine life.
Threat of oil spills devastate populations: sea turtles & seabirds.
Activities destroy kelp beds, reefs, coastal wetlands.
Over its lifetime, a single oil rig can: 90,000 tons of fluid & metal cuttings into the
ocean. Drill between 50-100 wells; 25,000 pounds; lead,
chromium, mercury, potent carcinogens like toluene, benzene, xylene into the ocean.
Pollute the air: 7,000 cars driving 50miles/day.
1859, 800 billion barrels of oil burned worldwide.
Oil industry: $150 billion/year to search drilling sites.
Ecological limit: serious global warming. 1988 oil industry drilled 100,000+
exploratory wells threatening: frontier forests in 22 countries coral reefs in 38 countries, mangrove swamps in 46 countries indigenous people on six continents global climate stability worldwide.
No correlation: 1999-2007 number of drilling permits increased by 361, gas prices ^2x.
Producing more oil domestically, America relies less on foreign oil imports; econ&politic benefits
According to US Energy Information Administration (EIA) US relies on imports for 57 percent of petroleum
needs Produces 1.8 billion barrels crude oil/year Imports 3.6 billion
Untapped oil reserves: offshore/remote regions. Major region: ANWR, EIA: 4.3 billion barrels of oil. Arctic Power: save the United States $14 billion
per year in oil imports, create 735,000 jobs. Gulf of Mexico's oil industry imp: US gov
estimates 2010's 4-month moratorium cost economy 23,000 jobs.
Astroturf Movement (2008) Evolved into the Tea Party Succeeded in opening up coastlines and
waters to offshore drillingFreedomWorks
Goals: reduce dependence on foreign oil, lower oil prices, increase competition
We should be able to take advantage of our own natural resources
Creates jobs
Cato Institute Libertarian group in D.C. Believes Congress should open up lands for
exploration and drilling Believes Congress should repeal all energy
conservation mandates American Petroleum Institute
“We remain committed to continually improving our strong safety record, and we take seriously our role in finding and producing energy for American consumers.”
Arctic National Wildlife Refuge Impacts the ocean floor, water and air
quality Poses a threat to a variety of species
Oceana The continued use of oil will lead to
climate change and ocean acidification Want to prevent the expansion of
offshore drilling
Greenpeace Banning all new oil drilling is the only
way to prevent another disaster Uses non violent methods to confront
and expose environmental problems
BP Oil Spill April 20, 2010 Deepwater Horizon drilling rig explosion:
11 workers died, 17 injured Rig owned by Transocean- proper
precautions not taken Around 200 million gallons of oil flowed
into the Gulf of Mexico
Considered the worst oil spill in U.S. history
The spill has caused damage to the marine and wildlife habitats
It has effected the Gulf’s tourism and fishing industries
After 1989 Exxon Valdez spill in Alaska, congress decided the oil companies are responsible for major accidents
Kenneth Feinberg’s firm will handle compensations
How do you feel about increased drilling for oil and natural gas offshore in U.S. waters?
Now May-10 Aug-08 Jul-08 Jun-08
Strongly Favor
26% 27% 52% 46% 48%
Mildly Favor
23% 30% 22% 23% 25%
Mildly Oppose
17% 16% 11% 12% 15%
Strongly Oppose
34% 25% 13% 18% 12%
How do you feel about the federal government increasing the amount of regulation of the oil industry in the U.S.?
Approve 68%Disapprove 31%
How do you feel about the federal government suspending all new drilling for oil in the gulf and other offshore sites for six months?
Approve 58%Disapprove 41%
“Drill, Baby, Drill!”Main goal: decrease American
dependence on foreign oilWant drilling on all shores of America Sarah Palin supports oil exploration
in Alaska’s Arctic National Wildlife Refuge
Quieted down, but haven’t abandon it
Compromise with Republicans Abandoned costal drilling ban that had
been enacted since 1980President Obama refused to
reconsider plans to expand offshore drilling
“Leave the oil in the soil.”Wanted Obama to cancel offshore
drilling in US waters off the Atlantic and Alaskan coasts
Want to hold BP and Halliburton liable for all costs of the spill.
Want a moratorium on offshore drilling operations.
One of only 6 states that allow coastal drilling
Estimated between 3 billion and 15 billion barrels of oil in area 175 miles from shore
Key Companies: Diamond Offshore Drilling, Cubic Energy, Transocean, McDermott, Chesapeake Energy Corp., and Magnum Hunter Resources.
$70 billion industry Employs more than 320,000 people in the
state
Gulf of Mexico considered federal waters
The oil belongs to the federal government
Federal government decides how much money to give to the states
Hurricane Katrina Complained that they weren’t getting
enough money for recovery
Cleanup after Hurricane Katrina and Rita
Protect from Katrina in the first placeTop priority: restore coastal wetlands
Protect from future hurricanes Home to exotic species Base of oil and gas operations Salt water replacing fresh water
Currently receives $1.5 million a year from government
In 2017, Louisiana will receive $500 million a year
http://www.youtube.com/watch?v=W78nURGxCAk
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