Deep Offshore DrillingDeep Offshore DrillingCarly Steffes, Chandler Sopko, Lisa RileyCarly Steffes, Chandler Sopko, Lisa Riley

IntroductionIntroductionThe discovery and de- The discovery and de- velopment of oil velopment of oil resources found resources found underwaterunderwater

Rigs are 300 x 300 ft and can weigh up to Rigs are 300 x 300 ft and can weigh up to 30,000 tons30,000 tons

The floating bases can carry over 10,000 feet The floating bases can carry over 10,000 feet of piping and can house up to 175 employeesof piping and can house up to 175 employees

80% of all the oil produced in the Gulf of 80% of all the oil produced in the Gulf of Mexico in 2009 came from deepwater sitesMexico in 2009 came from deepwater sites

HistoryHistoryThe first offshore drilling expedition took place The first offshore drilling expedition took place in 1896, near the coast of Summerland, in 1896, near the coast of Summerland, CaliforniaCalifornia

In 1969, Summerland experience an oil spill In 1969, Summerland experience an oil spill that leaked 4 million gallons of oil into the that leaked 4 million gallons of oil into the Santa Barbara soundSanta Barbara sound

The creation of Earth Day and the The creation of Earth Day and the Environmental Protection Act stemmed out Environmental Protection Act stemmed out of this catastropheof this catastrophe

Drilling began in the Gulf of Mexico in 1947Drilling began in the Gulf of Mexico in 1947

HistoryHistoryIn 1981, Congress imposed a partial ban on new In 1981, Congress imposed a partial ban on new offshore drilling projects, proclaiming that new wells offshore drilling projects, proclaiming that new wells had to be built at least 200 miles offshore of the had to be built at least 200 miles offshore of the East and West coasts and the North Shore of Alaska. East and West coasts and the North Shore of Alaska.

President Bush pushed Congress to lift the 27 year President Bush pushed Congress to lift the 27 year old ban on drilling off US coasts to alleviate gas old ban on drilling off US coasts to alleviate gas pricesprices

Obama opposed lifting the ban, saying it wouldn’t Obama opposed lifting the ban, saying it wouldn’t affect gas prices for at least 5 yearsaffect gas prices for at least 5 years

The House voted 236-189 in 2008 to allow drilling to The House voted 236-189 in 2008 to allow drilling to take place 50 miles from the shore with the state’s take place 50 miles from the shore with the state’s permission, and 100 miles from the shore without permission, and 100 miles from the shore without the state’s permissionthe state’s permission

ProsPros1.) Domestic Production of Oil

- Increasing the amount of offshore drilling leads to more domestic oil production as well as relying less on imported oil

2.) Creates Jobs

3.) Lower Gas Prices

- Offshore drilling increases the amount of oil available therefore leading to lower gas prices

4.) Less Dependence on Foreign Oil

ConsCons1.) Environmental Risk

- Oil Spills such as the recent BP spill and the spill in 1969 have drastic effects on the wildlife and ecosystems of the area surrounding the platforms

- The oil drilling platforms also release greenhouse gases into the air, and can even leak chemicals such as benzene, lead, and mercury into the water

2.) Prices Won’t be Lowered Significantly

- Opponents argue that offshore drilling wont lead to a drastic domestic production causing a lowering of world gas prices

3.) Carbon Emissions

4.) Effects Coast Appeal

- The crowding of drilling facilities off the gulf coast does not appeal to travelers or people living on the coast of the states surrounding the gulf

5.) Risks for Workers

- Drilling offshore creates hazardous conditions for the workers on the oil platforms. Drowning and fires are constant threats that the workers have to deal with on a daily basis

OceanaOceana

Offshore drilling is not safe.Offshore drilling is not safe.

Offshore drilling will not lower gas prices.Offshore drilling will not lower gas prices.

Offshore drilling will not make the U.S. energy Offshore drilling will not make the U.S. energy

independent.independent.

Threatens marine ecosystems.Threatens marine ecosystems.

Continued and increased use of oil will only Continued and increased use of oil will only

contribute to climate change and ocean contribute to climate change and ocean

acidification.acidification.

Oceana’s Statistics Oceana’s Statistics regarding the Deepwater regarding the Deepwater

Horizon SpillHorizon SpillNumber Number 11 largest accidental oil spill in history. largest accidental oil spill in history.

200200 millionmillion gallons of oil was released into the Gulf of Mexico. gallons of oil was released into the Gulf of Mexico.

Oil flowed into the Gulf for Oil flowed into the Gulf for 87 87 days straight.days straight.

The Gulf of Mexico spill is more than The Gulf of Mexico spill is more than 18 18 times the size of Alaska’s Exxon Valdez, times the size of Alaska’s Exxon Valdez,

previously the nation’s largest oil spill.previously the nation’s largest oil spill.

More than More than 28,50028,500 personnel are currently responding to protect the shoreline personnel are currently responding to protect the shoreline

and wildlife and cleanup vital coastlines.and wildlife and cleanup vital coastlines.

ApproximatelyApproximately 4,400 4,400 vessels are currently responding on site, including vessels are currently responding on site, including

skimmers, tugs, barges, and recovery vessels to assist in containment and skimmers, tugs, barges, and recovery vessels to assist in containment and

cleanup efforts.cleanup efforts.

Oceana’s Statistics regarding the Deepwater Horizon Spill cont’d

The oil and gas industry has a long history of spills in the Gulf of Mexico, The oil and gas industry has a long history of spills in the Gulf of Mexico,

dumping more thandumping more than 21.7 million 21.7 million gallons of petroleum into the Gulf between gallons of petroleum into the Gulf between

1964 and 2009.1964 and 2009.

Approximately Approximately 48,11448,114 square miles of Gulf of Mexico federal waters remain square miles of Gulf of Mexico federal waters remain

closed to fishing.closed to fishing.

The Louisiana commercial fishing lost an estimated The Louisiana commercial fishing lost an estimated $49-69$49-69 millionmillion in landings in landings

from May through July, which would cost from May through July, which would cost $368-515$368-515 millionmillion in sales, in sales, $192-268$192-268

millionmillion in income, and in income, and 8,000-11,0008,000-11,000 jobs. jobs.

It is estimated that the spill will cost the Gulf tourism industry between It is estimated that the spill will cost the Gulf tourism industry between $7.6$7.6 and and

$22.7$22.7 billionbillion over a period of up to three years. over a period of up to three years.

Property values in the entire Gulf are estimated to decline by 10% for at least Property values in the entire Gulf are estimated to decline by 10% for at least

three years, which would represent three years, which would represent $43$43 billionbillion in losses. in losses.

American Petroleum American Petroleum InstituteInstitute

Offshore drilling provides tens of thousands of Offshore drilling provides tens of thousands of

jobs for Americans across the nation.jobs for Americans across the nation.

Offshore drilling is necessary for the US to Offshore drilling is necessary for the US to

become energy independent.become energy independent.

New safety standards make offshore drilling New safety standards make offshore drilling

safer.safer.

American Petroleum American Petroleum Institute’s StatisticsInstitute’s Statistics

Production of oil and natural gas on federal lands has brought Production of oil and natural gas on federal lands has brought billions of dollarsbillions of dollars of of revenue into federal and state treasuries. These royalties are one of the lrevenue into federal and state treasuries. These royalties are one of the largest argest sourcessources of income to the federal government. of income to the federal government.

According to the U.S. Department of the Interior, in fiscal year 2008, the agency According to the U.S. Department of the Interior, in fiscal year 2008, the agency distributed a record distributed a record $23.4 billion $23.4 billion to the federal government, states and American Indian to the federal government, states and American Indian tribes from onshore and offshore energy production. Nearly tribes from onshore and offshore energy production. Nearly $22 billion$22 billion of that amount of that amount came from oil and natural gas production.came from oil and natural gas production.

A part of that revenue included A part of that revenue included $10 billion$10 billion in bonus bids paid by companies to lease in bonus bids paid by companies to lease tracts for offshore energy exploration on the Outer Continental Shelf in the Gulf of tracts for offshore energy exploration on the Outer Continental Shelf in the Gulf of Mexico and Alaska. A total of 35 states received Mexico and Alaska. A total of 35 states received $2.6 billion$2.6 billion from these revenues. from these revenues.

According to an ICF International study commissioned by the American Petroleum According to an ICF International study commissioned by the American Petroleum Institute (API), developing America’s vast domestic oil and natural gas resources that Institute (API), developing America’s vast domestic oil and natural gas resources that were kept off-limits by Congress for decades could generate more than were kept off-limits by Congress for decades could generate more than $1.7 trillion$1.7 trillion in in government revenue, including government revenue, including $1.3 trillion$1.3 trillion in revenues from in revenues from offshore developmentoffshore development alone. These revenues would be earned over the life of the resource.alone. These revenues would be earned over the life of the resource.

American Petroleum American Petroleum Institute’s Statistics Institute’s Statistics Cont’dCont’d

Increased federal leasing could bring additional high paying jobs to Americans. Increased federal leasing could bring additional high paying jobs to Americans. Our industry directly employsOur industry directly employs 2.1 million Americans 2.1 million Americans, with another , with another seven seven million million jobs supported by the industry.jobs supported by the industry.

Oil and natural gas industry exploration and production wages in 2006 were Oil and natural gas industry exploration and production wages in 2006 were more than more than doubledouble the national average. the national average.

In 2030, In 2030, 160,000160,000 jobs would be created. jobs would be created.

Energy Information Energy Information Administration StatisticsAdministration Statistics

Recent DevelopmentsRecent DevelopmentsOct 12 2010 – Secretary of the Interior conditionally lifts ban on Offshore Drilling

BOEMRE (Bureau of Ocean Emergency Management, Regulation, and Enforcement) has two new requirements to approve drilling that would have been banned under July 12 ban

1.) Operator must demonstrate it has enforceable obligations that ensure containment resources are available promptly in the event of a deepwater blowout, regardless of the company or operator involved. The Department of the Interior has a process under way to establish a mechanism relating to the availability of blowout containment resources, and Salazar said he expects that this mechanism will be implemented in the near future.

2.) The CEO of each operator seeking to perform deepwater drilling certify to BOEMRE that the operator has complied with all regulations, including the new drilling safety rules.

(you can cut these down)

Recent DevelopmentsRecent DevelopmentsSept. 19 2010 – Macondo well confirmed sealed by BP

Sept. 21 2010 – Spill resulted in 127 million gallons spilled roughly with BP capturing about 25 million gallons.

Sept. 28 2010 – Obama pushes the Gulf Restoration Program through

Focuses on addressing long term recovery and restoration in the gulf

Also recommends that Congress dedicate a significant amount of civil penalties collected from parties responsible to be put in a Gulf Coast restoration fund

Sept. 29 2010 -- BP and the Gulf of Mexico Alliance announced plans for implementing BP’s $500 million Gulf of Mexico Research Initiative to study the effects of the BP Spill and the potential associated impact on the environment and public health.

Oct. 1 2010

BP pledges collateral for Gulf of Mexico Oil Spill Trust

The pledged collateral consists of an overriding royalty interest in oil and gas production of BP's Thunder Horse, Atlantis, Mad Dog, Great White and Mars, Ursa and Na Kika oil and gas assets in the Gulf of Mexico

Public Opinion PollsPublic Opinion Polls

Public Opinion PollsPublic Opinion Polls

Republicans: “Drill, Baby, Republicans: “Drill, Baby, Drill!”Drill!”

Energy IndependenceEnergy Independence

Support oil drilling in protected Support oil drilling in protected areas like Alaska’s Arctic areas like Alaska’s Arctic National Wildlife RefugeNational Wildlife Refuge

Offshore floating rigs provide Offshore floating rigs provide jobs to 1000s of Americansjobs to 1000s of Americans

Encourages offshore drilling in Encourages offshore drilling in an environmentally an environmentally responsible wayresponsible way

Democrats: Democrats: “Compromise”“Compromise”

Promote sustainability and Promote sustainability and clean-energy technologiesclean-energy technologies

Want to pass legislation to Want to pass legislation to protect the nation from the protect the nation from the harmful environmental and harmful environmental and economic risks that accompany economic risks that accompany relying on foreign oilrelying on foreign oil

In 2008, Democrats added the In 2008, Democrats added the 50 mile drilling limit to the 50 mile drilling limit to the moratorium reform to protect moratorium reform to protect states from having drills 3 miles states from having drills 3 miles off the coastoff the coast

Green Party: “Leave the Green Party: “Leave the Oil Oil in in the Soil”the Soil”

Promotes solar, wind, and Promotes solar, wind, and other alternative energy other alternative energy sources that don’t pollute sources that don’t pollute the environmentthe environment

Green Party Presidential Green Party Presidential Candidate Cynthia McKinney Candidate Cynthia McKinney hopes to take drilling off the hopes to take drilling off the national agenda because it national agenda because it is “not working”is “not working”

Offshore Drilling is Offshore Drilling is BeneficialBeneficial

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Offshore Drilling is not Offshore Drilling is not BeneficialBeneficial

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