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By: Wynne, Dina, and Jess

Deep Offshore Drilling

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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

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Page 1: Deep Offshore Drilling

By: Wynne, Dina, and Jess

Page 2: Deep Offshore Drilling

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.

Page 3: Deep Offshore Drilling

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 Bay 2008: Reverses his father’s moratorium on

offshore drilling, Congress allows ban to expire. 2010: BP spill in Gulf of Mexico.

Page 4: Deep Offshore Drilling

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.

Page 5: Deep Offshore Drilling

(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

Page 6: Deep Offshore Drilling

Supporting our country’s oil production

Provides jobsDecreases oil pricesPromotes our energy independence

Page 7: Deep Offshore Drilling

Environmentalists argue alternative energy sources

Unearths contain toxic metals (mercury, lead, and cadmium)

Threatens beaches and wildlife with oil spills

Can cause economic harm

Page 8: Deep Offshore Drilling

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.

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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 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.

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Producing more oil domestically, America relies less on foreign oil imports; econ&politic benefits

According to US Energy Information Administration (EIA) US relies on imports for 57 percent of petroleum

needs Produces 1.8 billion barrels crude oil/year Imports 3.6 billion

Untapped 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 735,000 jobs. Gulf of Mexico's oil industry imp: US gov

estimates 2010's 4-month moratorium cost economy 23,000 jobs.

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Astroturf Movement (2008) Evolved into the Tea Party Succeeded in opening up coastlines and

waters to offshore drillingFreedomWorks

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

Page 16: Deep Offshore Drilling

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.”

Page 17: Deep Offshore Drilling

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

Page 18: Deep Offshore Drilling

Greenpeace Banning all new oil drilling is the only

way to prevent another disaster Uses non violent methods to confront

and expose environmental problems

Page 19: Deep Offshore Drilling

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

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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

Page 21: Deep Offshore Drilling

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

Now May-10 Aug-08 Jul-08 Jun-08

Strongly Favor

26% 27% 52% 46% 48%

Mildly Favor

23% 30% 22% 23% 25%

Mildly Oppose

17% 16% 11% 12% 15%

Strongly Oppose

34% 25% 13% 18% 12%

Page 22: Deep Offshore Drilling

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%

Page 23: Deep Offshore Drilling

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%

Page 24: Deep Offshore Drilling

“Drill, Baby, Drill!”Main goal: decrease American

dependence on foreign oilWant 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

Page 25: Deep Offshore Drilling

Compromise with Republicans Abandoned costal drilling ban that had

been enacted since 1980President Obama refused to

reconsider plans to expand offshore drilling

Page 26: Deep Offshore Drilling

“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.

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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

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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

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Cleanup after Hurricane Katrina and Rita

Protect from Katrina in the first placeTop priority: restore coastal wetlands

Protect from future hurricanes Home to exotic species Base of oil and gas operations Salt water replacing fresh water

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Currently receives $1.5 million a year from government

In 2017, Louisiana will receive $500 million a year

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http://www.youtube.com/watch?v=W78nURGxCAk