Offshore Drilling Group

1. Offshore Drilling Group Cindy Li, Sunny Kim & Erin McAliney

2. What Is Offshore Drilling? • Discovery of oil & gas resources underwater • Extract oil off the coasts of continents or in large lakes • Drilling units include: jackup rigs (200 ft), semisubmersible rigs (4000 ft)

3. A History of Offshore Drilling • Late 1800s: Oilmen (after drilling from wells) notice ocean = best oil producer • 1887: HL Williams builds 300ft wharf into Pacific from Summerland, CA w/ drilling rig • 1947: enormous demand for oil in peacetime economyKerr-McGee Corp. drills 1st well from fixed platform offshore • 1950s: Industry evolves; 2nd largest revenue generator for US (US Submerged Lands Act ’53) • 1969: Santa Barbara Oil Spill gov’t regulates development of oil spill regulation & research (National Environmental Policy Act) • 1980s: 1st offshore horizontal wells drilled (reach 7500 ft or 1.5 mi)

4. A History of Offshore Drilling (cont.) • 1982 Federal Oil & Gas Royalty Management Act: require oil & gas facilities built while protecting environment • 1983: President Reagan signs Proclamation 5030  est. US Exclusive Economic Zone (EEZ) • Last 20 years: New depth records of 7625 ft • Shell Oil’s “Troll” platform the only manmade object seen from moon besides the Great Wall of China • 2010: BP Oil Spill in the Gulf of Mexico largest accidental oil spill in history raises questions over offshore drilling

5. Pros of Offshore Drilling • More domestic production less reliance on imported oil from politically unstable Middle East • Lower gas prices increase supply of oil, which lowers gas prices • Increased government revenues opening restricted areas may generate billions of $$$ in state & federal revenues • Lives of Americans revolve around oil; almost a necessity

6. Cons of Offshore Drilling • Minimal price impact oil generated from drilling won’t be enough to affect world oil prices • Carbon emissions drilling contributes to emissions of CO2 • Environmental hazards many hazardous accidents that may kill people and damage the environment: Oil = toxic to marine species Average of 880,000 gallons of oil goes into the ocean a year • Disasters & accidents, e.g. BP Oil Spill

7. Interest Groups: Committee Against Oil Exploration (CAOE) • Anti-offshore drilling • Campaign launched by Culture Change website • Against Obama’s announcement (in April, pre-BP) to open Eastern coastal areas to offshore drilling • Seeks to conserve and protect ecosystems from pollution • Believes that it’s time to find sustainable alternatives for oil

8. Interest Groups: Proponents of Offshore Drilling in General • There are no interest groups that specifically support offshore drilling, but there are general supporters • Believe that offshore drilling is environmentally safe enough • Do not consider offshore drilling the only solution, but the best we have right now. • Believe that The U.S. should be free to explore its own waters for similar oil reserves

9. Evidence for Pro Argument Source: Minerals Management Service http://www.2facts.com/icof_story.aspx?PIN=i1300640&term=offshore+drilling

10. Evidence for Pro Argument cont. • Estimated 85.9 billion gallons of oil still undiscovered along outer continental shelf • Lowers Gas Prices and is enough to fuel country for approximately 11 years • Promotes US energy independence • In five years, global deep-water production is expected to rise by two-thirds, to 10 million barrels a day, according to Cambridge Energy Research Associates.

11. Evidence for Con Argument The Relative Impact of Offshore Drilling and Fuel Efficiency Standards Source: Energy Information Agency (EIA) http://www.cepr.net/documents/publications/offshore_drilling_2008_06.pdf

12. Evidence for Con Argument Cont. • 22 years of increasing fuel efficiency standards saves 16 times more in fuel consumption than 20 years of offshore drilling • A 2007 study by the Department of Energy--which estimated that the oil produced by drilling in banned offshore areas would be unavailable for almost a decade and would be insufficient to affect oil prices

13. Recent Developments • Noble Corp, the second-largest offshore drilling contractor by fleet size, could get back to work in the U.S. Gulf by the end of this year. • October 21, 2010- The U.S. government lifted a moratorium on deepwater drilling in Gulf of Mexico imposed after the BP Plc blowout six months ago

14. Recent Developments Cont. • State of Alaska filed lawsuit over Arctic Drilling against the Department of the Interior on October 12, 2010 • Obama Administration sets new rules for drilling:The rules will further increase the costs of drilling in shallow water and they will increase delays in permitting.

15. Public Opinion • Support for off shore drilling has decreased from 62% of Americans (august of 2008) to 42%. • 9% of Americans believe that environmentalists intentionally sabotaged the oil rig.

16. Public Opinion

17. Political Parties Republican Party “all of the above” • They support offshore drilling in an environmentally sound way . • 63% of Republicans • Believe in energy independence. Encourages the production of all types of energy. (solar, wind, nuclear ect.)

18. Democratic Party“compromise” • Do not oppose it, but are not strongly for it either. • They favor the development of domestic renewable energy • 34% of Democrats

19. Green Party “Leave the Oil in the soil.” • Opposes the toxic and environmentally-destructive national oil-based energy strategy. • Urges immediate investment in strategies that can have both a short-term and sustainable impact on our national energy strategy, such as solar, wind, and other non-polluting alternative energy sources.

20. Sources • "History of Offshore." NOIA: National Ocean Industries Association. 2006. Web. 21 Oct. 2010. <http://www.noia.org/website/article.asp?id=123>. • "History of the Offshore Industry." Offshore Magazine. 2009. Web. 21 Oct. 2010. <http://www.offshore-mag.com/index/about- us/history-of-offshore.html>. • Medlock III, Kenneth B. "Opposing Views: 1. Resource Potential and Market Impact." Opposing Views: Issues, Experts, Answers. Web. 22 Oct. 2010. <http://www.opposingviews.com/arguments/1-resource- potential-and-market-impact>. • "No Offshore Oil Drilling: Committee Against Oil Exploration (CAOE)." Culture Change. 3 Apr. 2010. Web. 21 Oct. 2010. <http://culturechange.org/cms/index.php?option=com_content &task=view&id=637&Itemid=1>. • "Oil Drilling." UXL Encyclopedia of Science. 2002. Encyclopedia.com. 21 Oct. 2010 <http://www.encyclopedia.com>. • Sierra Club. "Opposing Views: Offshore Drilling Is a Dirty Business." Opposing Views: Issues, Experts, Answers. Web. 22 Oct. 2010. <http://www.opposingviews.com/arguments/offshore-drilling- is-a-dirty-business>.

21. Sources Cont. • Baker, Dean, and Nichole Szembrot. "Offshore Drilling and Energy Conservation: The Relative Impact on Gas Prices." Center for Economic and Policy Research. Web. 22 Oct. 2010. <http://www.cepr.net/documents/publications/offshore_drilling_2008_06.pdf>. • Bradner, Tim. "State Notes Victory in Lawsuit over Offshore Drilling 10/21/10." The Alaska Journal of Commerce. Web. 22 Oct. 2010. <http://www.alaskajournal.com/stories/102110/oil_snv.shtml>. • Editors, By The. "What's Behind Obama's Drilling Plan? - NYTimes.com." Room for Debate - NYTimes.com. Web. 22 Oct. 2010. <http://roomfordebate.blogs.nytimes.com/2010/03/31/whats-behind-obamas- drilling-plan/>. • "Industry Steps Up Pro-Offshore Drilling Campaign | The Price of Oil." The Price of Oil | Oil Change International. Web. 22 Oct. 2010. <http://priceofoil.org/2010/06/22/industry-steps-up-pro-offshore-drilling- campaign/>. • Institute for Energy Research. "Offshore Oil Drilling in Shallow Water: Good Safety Record, Less Risky." Canada Free Press. Web. 22 Oct. 2010. <http://canadafreepress.com/index.php/article/29068>. • Reddall, By Braden. "Gulf Deepwater Drilling Freeze Thawing Slowly | Reuters." Business & Financial News, Breaking US & International News | Reuters.com. 21 Oct. 2010. Web. 22 Oct. 2010. <http://www.reuters.com/article/idUSTRE69K4C120101021>.

22. Sources Cont. • Fisher, Max. "How Oil Spill Changed Public Opinion on Offshore Drilling | The Atlantic Wire." Tracking the Most Influential Opinion Makers and Debates in Business and Politics | The Atlantic Wire. 31 May 2010. Web. 22 Oct. 2010. http://www.theatlanticwire.com/opinions/view/opinion/How-Oil-Spill-Changed-Public-Opinion-on-Offshore-Drilling-3595. • Democratic Views of Offshore Drilling « OntheWilderSide." OntheWilderSide. WP Designer, 02 Oct. 2008. Web. 22 Oct. 2010. <http://wilderside.wordpress.com/2008/10/02/green-republican-democratic-views-of-offshore-drilling/>. • "Current Political Issues | RNC: Republican National Committee | GOP." RNC: Republican National Committee | RNC: Republican National Committee | GOP. 2010. Web. 22 Oct. 2010. <http://www.gop.com/index.php/issues/issues/>. • Hall, Sam. "Governor Worried about Offshore Drilling | Mississippi Democratic Party." Mississippi Democratic Party. 02 June 2010. Web. 22 Oct. 2010. <http://www.mississippidemocrats.org/blog/2010/governor-worried-about-offshore-drilling/>.