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Is “Drill, baby, drill” ‘dumb, baby, dumb’ for North Carolina?

Is “Drill, baby, drill” ‘dumb, baby, dumb’ for North Carolina?. Lawrence B. Cahoon Biology and Marine Biology UNC Wilmington. Economics 101. Price = f (Supply / Demand). Will Drilling Off NC Lower Price?. Not soon: East Coast isn’t leased out yet

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Is “Drill, baby, drill” ‘dumb, baby, dumb’ for North Carolina?

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  1. Is “Drill, baby, drill”‘dumb, baby, dumb’ for North Carolina? Lawrence B. Cahoon Biology and Marine Biology UNC Wilmington

  2. Economics 101 • Price = f (Supply / Demand)

  3. Will Drilling Off NC Lower Price? • Not soon: East Coast isn’t leased out yet • Not soon: Existing leases aren’t explored • Not soon: Drill ships booked 5 years out • Not soon: Time to market is > 8-10 years • No: It’s expensive to produce • No: OPEC sets the price via supply • No: World demand will increase • No: Not enough off NC to drive price

  4. “Technically Recoverable Oil???”

  5. Benefits vs. Costs • Domestic fuel supply: Safer than OPEC • Jobs and Revenues: No doubt, but net? • Environmental hazards: Spills, Navigation hazards, Storms and currents, Drilling muds, Waste water discharges • Environmental sensitivity: Gulf Stream @ The Point, Beaches, Fisheries • Recreational Coast: Tourism, fishing impacts • Infrastructure: Pipelines, Refineries, Storage

  6. Externalities:Price vs. Cost • Air pollution: Coal > Oil > Gas ≠ 0 • Global Warming is the ultimate externality • Er, maybe war, too

  7. Opportunity Costs “The Stone Age didn’t end because we ran out of stones” Sheikh Ahmed Zaka Yamani Former Saudi Oil Minister

  8. What does our energy future look like? When does it start? OR

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