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Deep Offshore Drilling

By: Wynne, Dina, and Jess. Deep Offshore Drilling. Introduction. 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.

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Deep Offshore Drilling

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  1. By: Wynne, Dina, and Jess Deep Offshore Drilling

  2. Introduction • 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.

  3. History • 1880s-1950s: Grows in importance. • 1960s-1980s: Domestic oil production peaks- OPEC embargo. • 1990spolicy. • 1990: Oil Polluti: Aftermath of Exxon Valdez spill, gov tightens up on offshore drilling on 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.

  4. History Continued (Important Legislation) • 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.

  5. History Continued (Important Legislation) • (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

  6. Pros • Supporting our country’s oil production • Provides jobs • Decreases oil prices • Promotes our energy independence

  7. Cons • Environmentalists argue alternative energy sources • Unearths contain toxic metals (mercury, lead, and cadmium) • Threatens beaches and wildlife with oil spills • Can cause economic harm

  8. Evidence Against Offshore Drilling • Stream of pollution: health and reproductive problems for marine life. • The threat of oil spills would 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.

  9. Evidence Against Offshore Drilling • 1859, 800 billion barrels of oil have been burned worldwide. • Oil industry: $150 billion/year to search for drilling sites. • Ecological limit to the use of oil: serious global warming as we continue to burn more and more oil. • 1988 oil industry has drilled more than 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.

  10. Ads Against Offshore Drilling

  11. Evidence To Support Offshore Drilling • Producing more oil domestically, America relies less on foreign oil imports, resulting in both economic and political benefits. • According to US Energy Information Administration (EIA) • US relies on imports for approximately 57 percent of its petroleum needs • Produces 1.8 billion barrels of crude oil/year • Imports 3.6 billion barrels • Much of untapped oil reserves: offshore/remote regions. • A major region being 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.

  12. Pro-drilling Interest Groups • Astroturf Movement (2008) • Evolved into the Tea Party • Succeeded in opening up coastlines and waters to offshore drilling • FreedomWorks • 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

  13. Pro-drilling Interest Groups • 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.”

  14. Anti-drilling Interest Groups • 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

  15. Anti-drilling Interest Groups • Greenpeace • Banning all new oil drilling is the only way to prevent another disaster • Uses non violent methods to confront and expose environmental problems

  16. Recent Developments • 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

  17. Recent Developments • 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

  18. Public Opinion Polls • How do you feel about increased drilling for oil and natural gas offshore in U.S. waters?

  19. Public Opinion Polls • 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%

  20. Public Opinion Polls • 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%

  21. Republican View • “Drill, Baby, Drill!” • Main goal: decrease American dependence on foreign oil • Want 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

  22. Democrat View • Compromise with Republicans • Abandoned costal drilling ban that had been enacted since 1980 • President Obama refused to reconsider plans to expand offshore drilling

  23. Green Party View • “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.

  24. Background: Drilling in Louisiana • 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

  25. The Problem • 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

  26. The Argument • Cleanup after Hurricane Katrina and Rita • Protect from Katrina in the first place • Top priority: restore coastal wetlands • Protect from future hurricanes • Home to exotic species • Base of oil and gas operations • Salt water replacing fresh water

  27. The Solution • Currently receives $1.5 million a year from government • In 2017, Louisiana will receive $500 million a year

  28. The Future of Offshore Drilling • http://www.youtube.com/watch?v=W78nURGxCAk

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