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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. - PowerPoint PPT Presentation

Text of Deep Offshore Drilling

  • By: Wynne, Dina, and Jess

  • Definition: oil gas resources that lie deep underwater.Cant 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 Bay2008: Reverses his fathers 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 & FLAs west coast: extends the States Gulf of Mexico jurisdiction 9 nautical miles (10.35 miles).1953 Outer Continental Shelf ActOuter 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 communitiesNational Environmental Policy Act of 1969 Coastal Zone Management Act of 1972 Clean Water Act of 1977Federal Oil and Gas Royalty Act of 1982National Fishing Enhancement Act of 1984

  • Supporting our countrys oil productionProvides jobsDecreases oil pricesPromotes our energy independence

  • Environmentalists argue alternative energy sourcesUnearths contain toxic metals (mercury, lead, and cadmium)Threatens beaches and wildlife with oil spillsCan 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 countriescoral reefs in 38 countries,mangrove swamps in 46 countriesindigenous people on six continentsglobal 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 benefitsAccording to US Energy Information Administration (EIA)US relies on imports for 57 percent of petroleum needsProduces 1.8 billion barrels crude oil/yearImports 3.6 billionUntapped 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 735,000jobs. 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 PartySucceeded in opening up coastlines and waters to offshore drillingFreedomWorksGoals: reduce dependence on foreign oil, lower oil prices, increase competitionWe should be able to take advantage of our own natural resources Creates jobs

  • Cato InstituteLibertarian group in D.C.Believes Congress should open up lands for exploration and drillingBelieves Congress should repeal all energy conservation mandates American Petroleum InstituteWe 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 RefugeImpacts the ocean floor, water and air qualityPoses a threat to a variety of speciesOceanaThe continued use of oil will lead to climate change and ocean acidification Want to prevent the expansion of offshore drilling

  • GreenpeaceBanning all new oil drilling is the only way to prevent another disasterUses non violent methods to confront and expose environmental problems

  • BP Oil SpillApril 20, 2010Deepwater Horizon drilling rig explosion: 11 workers died, 17 injuredRig owned by Transocean- proper precautions not takenAround 200 million gallons of oil flowed into the Gulf of Mexico

  • Considered the worst oil spill in U.S. historyThe spill has caused damage to the marine and wildlife habitatsIt has effected the Gulfs tourism and fishing industriesAfter 1989 Exxon Valdez spill in Alaska, congress decided the oil companies are responsible for major accidentsKenneth Feinbergs firm will handle compensations

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

    NowMay-10Aug-08Jul-08Jun-08Strongly Favor26%27%52%46%48%Mildly Favor23%30%22%23%25%Mildly Oppose17%16%11%12%15%Strongly Oppose34%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 Alaskas Arctic National Wildlife RefugeQuieted down, but havent abandon it

  • Compromise with RepublicansAbandoned 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 coastsWant 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 drillingEstimated 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 watersThe oil belongs to the federal governmentFederal government decides how much money to give to the states

    Hurricane KatrinaComplained that they werent getting enough money for recovery

  • Cleanup after Hurricane Katrina and RitaProtect from Katrina in the first placeTop priority: restore coastal wetlandsProtect from future hurricanes Home to exotic speciesBase of oil and gas operationsSalt water replacing fresh water

  • Currently receives $1.5 million a year from governmentIn 2017, Louisiana will receive $500 million a year


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