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Deep Offshore Drilling Carly Steffes, Chandler Sopko, Lisa Riley Introduction The discovery and de- velopment of oil resources found underwater Rigs are 300 x 300 ft and can weigh up to 30,000 tons The floating bases can carry over 10,000 feet of piping and can house up to 175 employees 80% of all the oil produced in the Gulf of Mexico in 2009 came from deepwater sites History The first offshore drilling expedition took place in 1896, near the coast of Summerland, California In 1969, Summerland experience an oil spill that leaked 4 million gallons of oil into the Santa Barbara sound The creation of Earth Day and the Environmental Protection Act stemmed out of this catastrophe Drilling began in the Gulf of Mexico in 1947 History In 1981, Congress imposed a partial ban on new offshore drilling projects, proclaiming that new wells had to be built at least 200 miles offshore of the East and West coasts and the North Shore of Alaska. President Bush pushed Congress to lift the 27 year old ban on drilling off US coasts to alleviate gas prices Obama opposed lifting the ban, saying it wouldn’t affect gas prices for at least 5 years The House voted 236-189 in 2008 to allow drilling to take place 50 miles from the shore with the state’s permission, and 100 miles from the shore without the state’s permission Pros Production of Oil 1.) Domestic • - 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 • 1.) Environmental Risk - Oil Spills such as the recent BP spill and the spill in 1969 have drastic effects on Cons • 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 Oceana Offshore drilling is not safe. Offshore drilling will not lower gas prices. Offshore drilling will not make the U.S. energy independent. Threatens marine ecosystems. Continued and increased use of oil will only contribute to climate change and ocean acidification. Oceana’s Statistics regarding the Deepwater Horizon Spill Number 1 largest accidental oil spill in history. 200 million gallons of oil was released into the Gulf of Mexico. Oil flowed into the Gulf for 87 days straight. The Gulf of Mexico spill is more than 18 times the size of Alaska’s Exxon Valdez, previously the nation’s largest oil spill. More than 28,500 personnel are currently responding to protect the shoreline and wildlife and cleanup vital coastlines. Approximately 4,400 vessels are currently responding on site, including skimmers, tugs, barges, and recovery vessels to assist in containment and 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, dumping more than 21.7 million gallons of petroleum into the Gulf between 1964 and 2009. Approximately 48,114 square miles of Gulf of Mexico federal waters remain closed to fishing. The Louisiana commercial fishing lost an estimated $49-69 million in landings from May through July, which would cost $368-515 million in sales, $192-268 million in income, and 8,000-11,000 jobs. It is estimated that the spill will cost the Gulf tourism industry between $7.6 and $22.7 billion over a period of up to three years. Property values in the entire Gulf are estimated to decline by 10% for at least three years, which would represent $43 billion in losses. American Petroleum Institute Offshore drilling provides tens of thousands of jobs for Americans across the nation. Offshore drilling is necessary for the US to become energy independent. New safety standards make offshore drilling safer. American Petroleum Institute’s Statistics Production of oil and natural gas on federal lands has brought billions of dollars of revenue into federal and state treasuries. These royalties are one of the largest sources of income to the federal government. According to the U.S. Department of the Interior, in fiscal year 2008, the agency distributed a record $23.4 billion to the federal government, states and American Indian tribes from onshore and offshore energy production. Nearly $22 billion of that amount came from oil and natural gas production. A part of that revenue included $10 billion in bonus bids paid by companies to lease tracts for offshore energy exploration on the Outer Continental Shelf in the Gulf of Mexico and Alaska. A total of 35 states received $2.6 billion from these revenues. According to an ICF International study commissioned by the American Petroleum 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 $1.7 trillion in government revenue, including $1.3 trillion in revenues from offshore development alone. These revenues would be earned over the life of the resource. American Petroleum Institute’s Statistics Cont’d Increased federal leasing could bring additional high paying jobs to Americans. Our industry directly employs 2.1 million Americans, with another seven million jobs supported by the industry. Oil and natural gas industry exploration and production wages in 2006 were more than double the national average. In 2030, 160,000 jobs would be created. Energy Information Administration Statistics Recent Developments Oct 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) Sept. 19 2010 – Macondo well confirmed sealed by BP Recent Developments • 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 Public Opinion Polls Public Opinion Polls Offshore Drilling is Beneficial QuickTime™ and a decompressor are needed to see this picture. Pros and Cons of Offshore Drilling. Dir. Fox News. Perf. Brian Wilson. Costs and Benefits of Offshore Drilling. Institute for Energy Research/Fox News, July 2010. Web. 21 Oct. 2010. <http://www.youtube.com/watch?v=zdrVf-mLw78>. Offshore Drilling is not Beneficial Offshore Drilling Debated. Dir. CBS News. Perf. Bill Whitaker. Offshore Drilling Debated. Youtube: CBS News, 18 June 2008. Web. 21 Oct. 2010. <http://www.youtube.com/watch?v=3CFKdOFN3Vo&feature=channel>. Sources "Bush Urges Congress to Lift Offshore Drilling Ban - Politics | Republican Party | Democratic Party | Political Spectrum - FOXNews.com." FOXNews.com - Breaking News | Latest News | Current News. 18 June 2008. Web. 19 Oct. 2010. <http://www.foxnews.com/story/0,2933,368221,00.html> Cooper, Anderson. "Map: Obama's Energy Plan and Offshore Drilling Sites « - CNN.com Blogs." Anderson Cooper 360: - CNN.com Blogs. 31 Mar. 2010. Web. 19 Oct. 2010. <http://ac360.blogs.cnn.com/2010/03/31/obama-energy-plan-would-open-atlantic-and-gulf/>. "Current Political Issues | RNC: Republican National Committee | GOP." RNC: Republican National Committee | RNC: Republican National Committee | GOP. Web. 19 Oct. 2010. <http://www.gop.com/index.php/issues/issues/>. Daly, Matthew. "Offshore Oil Rigs Can Resume Deep Water Drilling, as Obama Moratorium Is Lifted - CSMonitor.com." The Christian Science Monitor - CSMonitor.com. 12 Oct. 2010. Web. 19 Oct. 2010. <http://www.csmonitor.com/USA/Latest-News- Wires/2010/1012/Offshore-oil-rigs-can-resume-deep-water-drilling-as-Obama-moratorium-is- lifted> "Green, Republican, & Democratic Views of Offshore Drilling « OntheWilderSide." OntheWilderSide. 2 Oct. 2008. Web. 19 Oct. 2010. <http://wilderside.wordpress.com/2008/10/02/green-republican-democratic-views-of- offshore-drilling/>. Hulse, Carl. "Democrats Reluctantly Embrace Offshore Drilling." The New York Times. 11 Sept. 2008. Web. 19 Oct. 2010. <http://www.nytimes.com/2008/09/12/us/12cong.html>. "What We Stand For: Energy Independence." Democrats.org. Web. 19 Oct. 2010. <http://www.democrats.org/issues/energy_independence>. Sources American Petroleum Institute. "Offshore Access to America’s Oil and Natural Gas Resources." Offshore Access to America’s Oil and Natural Gas Resources. American Petroleum Institute, 15 Sept. 2009. Web. 24 Oct. 2010. <http://www.api.org/aboutoilgas/upload/access_primer.pdf>. • Bush, Bill. "API Opposes New Offshore Drilling Moratorium." API Newsroom. American Petroleum Institute, 12 July 2010. Web. 24 Oct. 2010. <http://www.api.org/Newsroom/no-new-moratorium.cfm>. • Energy Information Administration. "EIA - Impacts of Increased Access to Oil and Natural Gas Resources in the Lower 48 Federal Outer Continental Shelf." U.S. Energy Information Administration - EIA - Independent Statistics and Analysis. N.p., 2007. Web. 24 Oct. 2010. <http://www.eia.doe.gov/oiaf/aeo/otheranalysis/ongr.html>. • Oceana. "The Spill - By the Numbers." Home | Oceana North America. N.p., 31 Aug. 2010. Web. 24 Oct. 2010. <http://na.oceana.org/en/our-work/climate-energy/offshore-drilling/gulf-oil-spill-response-center/the- spill-by-the-numbers>. • Oceana. "The Three Myths Of Offshore Drilling." Home | Oceana North America. N.p., 2010. Web. 24 Oct. 2010. <http://na.oceana.org/en/our-work/climate-energy/offshore-drilling/learn-act/the-three-myths-of- offshore-drilling>. Sources Offshore Drilling Debated. Dir. CBS News. Perf. Bill Whitaker. Offshore Drilling Debated. Youtube: CBS News, 18 June 2008. Web. 21 Oct. 2010. <http://www.youtube.com/watch?v=3CFKdOFN3Vo&feature=channel>. • Pros and Cons of Offshore Drilling. Dir. Fox News. Perf. Brian Wilson. Costs and Benefits of Offshore Drilling. Institute for Energy Research/Fox News, July 2010. Web. 21 Oct. 2010. <http://www.youtube.com/watch?v=zdrVf-mLw78>.
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