United States offshore drilling debate
Encyclopedia
The United States offshore drilling debate is an ongoing debate in the United States
on whether or not offshore drilling
for new wells off the coast of the U.S. should be allowed.
The issue saw increased coverage as president George W. Bush
in July 2008 lifted a 1990 executive order by George H. W. Bush
banning offshore drilling, while at the same time calling for drilling in the Arctic National Wildlife Refuge
.
The issue of offshore drilling became central in the 2008 presidential election
, not least because of the oil price increases since 2003. It is also being debated in terms of both environmental issues and U.S. energy independence
. As of September 2008, President Barack Obama
is for limited offshore drilling as part of an extensive energy independence overhaul.
Bush's energy policy was named "drill and veto" by U.S. House Speaker
Nancy Pelosi
. The Drill Responsibly in Leased Lands (DRILL) Act (H.R. 6515) is one of the bills discussed in the Congress about drilling. In Florida, many counties, cities, chambers of commerce, and other local agencies have passed resolutions against oil drilling in Florida waters.
On March 31, 2010, President Obama announced that he was opening new areas in U.S. coastal waters to offshore drilling for gas and oil. This was in stark contrast to his reaction only a few weeks later to the Deepwater Horizon oil spill
in the Gulf of Mexico that has become the largest offshore oil spill in United States history.
of the United States Constitution
gives the federal government certain regulatory power over "navigable waters" of the United States. The Submerged Lands Act of 1953 and Continental Shelf Lands Act of 1953, along with the 1960 Supreme Court decision in United States v. States of Louisiana, Texas, Mississippi, Alabama, and Florida, divided ownership of the tidelands
of the United States between state and federal governments. States own the sea and seabed out to 3.5 miles (5.6 km), except Texas and Florida which own out to 10.5 miles (16.9 km). The federal government owns the remainder of the territorial waters
.
The 28 January 1969 blowout
at a Unocal
rig
, which spilled 3 million USgals (11,356.2 m³) of petroleum
off the coast of Santa Barbara
, California
, resulted in drilling bans in offshore California and Florida.
Offshore drilling has continued uninterrupted in offshore Texas and Louisiana. In 2006, an 8300000 acres (33,588.9 km²) area in the Gulf of Mexico
known as lease 181 was opened for exploration. The existing moratorium on leasing on the Outer Continental Shelf
expires in 2012, and the debate is on whether or not to extend it.
The chief argument in favor of lifting the ban is that offshore drilling helps the United States become less dependent on imported oil. Geopolitically, the U.S. would be less vulnerable to sanctions by oil-producing countries hostile to the United States. It would also make the United States less vulnerable to a stop in a country's oil exports, due to, for example, a civil war or an invasion of that country. Economically, if a larger share of the oil being consumed were produced in the United States, it would lessen the U.S. trade deficit with the rest of the world. The debate often makes references to the 1973 oil crisis
and 1979 energy crisis
at the U.S. Dep. of Energy
analyzed the effect of lifting the moratorium. With leasing beginning in 2012, production of oil would not be expected to start before 2017. The EIA estimated how much of the oil could be extracted both technically and in an economically viable fashion. The EIA found that access to the Pacific, Atlantic, and eastern Gulf of Mexico regions would increase domestic oil production by 1.6 percent between 2012 and 2030. Oil prices are today governed by demand and supply in the global market, and a 1.6 percent increase in the U.S. production would have little or no impact on price. The Natural Resources Defense Council
estimated that the price of oil would only drop about 3–4 cents in 15 to 20 years.
stated that offshore drilling would disrupt military training and weapons testing, if done in the Gulf of Mexico along the coast of Florida.
rig owned by Transocean Ltd.
and operating in the Gulf of Mexico under lease to energy giant BP
, resulting in the largest oil spill in United States history.
gave permission to BP and dozens of other oil companies to drill in the Gulf of Mexico without first getting required permits that assesses threats to endangered species
.
activists have warned that offshore drilling distracts the United States from finding alternative sources of energy which would improve the economy. Developing future alternative energy sources is seen as crucial for the U.S. economy, by both Democrats and Republicans. This is reflected in both statements by the Obama administration and the 2006 Addicted to oil speech by George W. Bush. However, these massive investments will be funded by the present economy, which ties the alternative energy debate into debates on how to manage the economy, especially the mitigation of peak oil
. In light of this, some may defend both new oil fields in the Gulf of Mexico and the extraction of unconventional oil such as oil sands in Canada on the grounds that it mitigates peak oil and keeps the economy afloat until it transitions to other energy sources. Others call for shifting existing energy subsidies away from oil towards renewables. The offshore drilling is only a small part of this larger debate.
, Cuba
has been preparing to explore its own offshore area near Florida. The subject became an issue in the 2008 presidential race, with assertions and denials of the reality of Cuban offshore drilling. On 31 October 2008, Brazilian and Cuban presidents Luiz Inácio Lula da Silva
and Raul Castro
attended a ceremony at which the Brazilian oil company Petrobras
agreed to drill for oil in Cuban offshore waters near Florida.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
on whether or not offshore drilling
Offshore drilling
Offshore drilling refers to a mechanical process where a wellbore is drilled through the seabed. It is typically carried out in order to explore for and subsequently produce hydrocarbons which lie in rock formations beneath the seabed...
for new wells off the coast of the U.S. should be allowed.
George W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
in July 2008 lifted a 1990 executive order by George H. W. Bush
George H. W. Bush
George Herbert Walker Bush is an American politician who served as the 41st President of the United States . He had previously served as the 43rd Vice President of the United States , a congressman, an ambassador, and Director of Central Intelligence.Bush was born in Milton, Massachusetts, to...
banning offshore drilling, while at the same time calling for drilling in the Arctic National Wildlife Refuge
Arctic National Wildlife Refuge
The Arctic National Wildlife Refuge is a national wildlife refuge in northeastern Alaska, United States. It consists of in the Alaska North Slope region. It is the largest National Wildlife Refuge in the country, slightly larger than the Yukon Delta National Wildlife Refuge...
.
The issue of offshore drilling became central in the 2008 presidential election
United States presidential election, 2008
The United States presidential election of 2008 was the 56th quadrennial presidential election. It was held on November 4, 2008. Democrat Barack Obama, then the junior United States Senator from Illinois, defeated Republican John McCain, the senior U.S. Senator from Arizona. Obama received 365...
, not least because of the oil price increases since 2003. It is also being debated in terms of both environmental issues and U.S. energy independence
U.S. energy independence
U.S. energy independence relates to the goal of reducing the U.S imports of oil and other foreign sources of energy. If total energy is looked at, the U.S. is over 70% self-sufficient. Energy independence is espoused by those who want to leave America unaffected by global energy supply...
. As of September 2008, President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
is for limited offshore drilling as part of an extensive energy independence overhaul.
Bush's energy policy was named "drill and veto" by U.S. House Speaker
Speaker of the United States House of Representatives
The Speaker of the United States House of Representatives, or Speaker of the House, is the presiding officer of the United States House of Representatives...
Nancy Pelosi
Nancy Pelosi
Nancy Patricia D'Alesandro Pelosi is the Minority Leader of the United States House of Representatives and served as the 60th Speaker of the United States House of Representatives from 2007 to 2011...
. The Drill Responsibly in Leased Lands (DRILL) Act (H.R. 6515) is one of the bills discussed in the Congress about drilling. In Florida, many counties, cities, chambers of commerce, and other local agencies have passed resolutions against oil drilling in Florida waters.
On March 31, 2010, President Obama announced that he was opening new areas in U.S. coastal waters to offshore drilling for gas and oil. This was in stark contrast to his reaction only a few weeks later to the Deepwater Horizon oil spill
Deepwater Horizon oil spill
The Deepwater Horizon oil spill is an oil spill in the Gulf of Mexico which flowed unabated for three months in 2010, and continues to leak fresh oil. It is the largest accidental marine oil spill in the history of the petroleum industry...
in the Gulf of Mexico that has become the largest offshore oil spill in United States history.
Background
As interpreted by the federal courts, the Commerce ClauseCommerce Clause
The Commerce Clause is an enumerated power listed in the United States Constitution . The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to...
of the United States Constitution
United States Constitution
The Constitution of the United States is the supreme law of the United States of America. It is the framework for the organization of the United States government and for the relationship of the federal government with the states, citizens, and all people within the United States.The first three...
gives the federal government certain regulatory power over "navigable waters" of the United States. The Submerged Lands Act of 1953 and Continental Shelf Lands Act of 1953, along with the 1960 Supreme Court decision in United States v. States of Louisiana, Texas, Mississippi, Alabama, and Florida, divided ownership of the tidelands
Tidelands
Tidelands are the territory between the high and low water tide line of sea coasts, and lands lying under the sea beyond the low-water limit of the tide, considered within the territorial waters of a nation. The United States Constitution does not specify whether ownership of these lands rests with...
of the United States between state and federal governments. States own the sea and seabed out to 3.5 miles (5.6 km), except Texas and Florida which own out to 10.5 miles (16.9 km). The federal government owns the remainder of the territorial waters
Territorial waters
Territorial waters, or a territorial sea, as defined by the 1982 United Nations Convention on the Law of the Sea, is a belt of coastal waters extending at most from the baseline of a coastal state...
.
The 28 January 1969 blowout
Blowout (well drilling)
A blowout is the uncontrolled release of crude oil and/or natural gas from an oil well or gas well after pressure control systems have failed....
at a Unocal
Unocal Corporation
Union Oil Company of California, dba Unocal is a defunct company that was a major petroleum explorer and marketer in the late 19th century, through the 20th century, and into the early 21st century. It was headquartered in El Segundo, California, United States.On August 10, 2005, Unocal merged...
rig
Rig
Rig may refer to:* Rig, Something that a dog pulls when Mushing* Rig, a slang term referring to a tractor unit* Drilling rig, a structure housing equipment used to drill or extract oil from underground* Gaming rig, a PC built for high-performance gaming...
, which spilled 3 million USgals (11,356.2 m³) of petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
off the coast of Santa Barbara
Santa Barbara, California
Santa Barbara is the county seat of Santa Barbara County, California, United States. Situated on an east-west trending section of coastline, the longest such section on the West Coast of the United States, the city lies between the steeply-rising Santa Ynez Mountains and the Pacific Ocean...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
, resulted in drilling bans in offshore California and Florida.
Offshore drilling has continued uninterrupted in offshore Texas and Louisiana. In 2006, an 8300000 acres (33,588.9 km²) area in the Gulf of Mexico
Gulf of Mexico
The Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
known as lease 181 was opened for exploration. The existing moratorium on leasing on the Outer Continental Shelf
Outer Continental Shelf
The Outer Continental Shelf is a peculiarity of the political geography of the United States and is the part of the internationally recognized continental shelf of the United States which does not fall under the jurisdictions of the individual U.S...
expires in 2012, and the debate is on whether or not to extend it.
Energy independence argument
1973 oil crisis
The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countries or the OAPEC proclaimed an oil embargo. This was "in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war. It lasted until March 1974. With the...
and 1979 energy crisis
1979 energy crisis
The 1979 oil crisis in the United States occurred in the wake of the Iranian Revolution. Amid massive protests, the Shah of Iran, Mohammad Reza Pahlavi, fled his country in early 1979 and the Ayatollah Khomeini soon became the new leader of Iran. Protests severely disrupted the Iranian oil...
Fuel price argument
The issue came to the forefront in the middle of a steep rise in gasoline prices, so an underlying motivation was to reduce the current gasoline prices. The Energy Information AdministrationEnergy Information Administration
The U.S. Energy Information Administration is the statistical and analytical agency within the U.S. Department of Energy. EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and...
at the U.S. Dep. of Energy
United States Department of Energy
The United States Department of Energy is a Cabinet-level department of the United States government concerned with the United States' policies regarding energy and safety in handling nuclear material...
analyzed the effect of lifting the moratorium. With leasing beginning in 2012, production of oil would not be expected to start before 2017. The EIA estimated how much of the oil could be extracted both technically and in an economically viable fashion. The EIA found that access to the Pacific, Atlantic, and eastern Gulf of Mexico regions would increase domestic oil production by 1.6 percent between 2012 and 2030. Oil prices are today governed by demand and supply in the global market, and a 1.6 percent increase in the U.S. production would have little or no impact on price. The Natural Resources Defense Council
Natural Resources Defense Council
The Natural Resources Defense Council is a New York City-based, non-profit, non-partisan international environmental advocacy group, with offices in Washington DC, San Francisco, Los Angeles, Chicago, and Beijing...
estimated that the price of oil would only drop about 3–4 cents in 15 to 20 years.
Enough leases argument
Oil companies already hold places to drill in the United States, as well as 5,500 offshore leases that are not being used. House Speaker Nancy Pelosi, stated, “It's time to tell the oil industry: ‘You already have millions of acres to drill. Use it or lose it.’“ The Department of the Interior estimates 68 Goilbbl of oil lie in areas already accessible to drilling in the Gulf of Mexico and Alaska. However, Republicans noted that companies were doing exploration in these areas and that current law already mandates that companies must look for oil in their leases.Military training argument
In 2005 U.S. Defense Secretary Donald RumsfeldDonald Rumsfeld
Donald Henry Rumsfeld is an American politician and businessman. Rumsfeld served as the 13th Secretary of Defense from 1975 to 1977 under President Gerald Ford, and as the 21st Secretary of Defense from 2001 to 2006 under President George W. Bush. He is both the youngest and the oldest person to...
stated that offshore drilling would disrupt military training and weapons testing, if done in the Gulf of Mexico along the coast of Florida.
Oil spills argument
Drilling in the Gulf of Mexico and Atlantic Ocean is subject to oil spills due to damage from hurricanes. While the Coast Guard reported no spills from offshore facilities, their estimates include over 8 million USgals (30,283.3 m³) spilled from coastal facilities after hurricane Katrina. Offshore facilities and the transport of crude from them do however pose an environmental risk during normal conditions, as exemplified by numerous oil spills worldwide. On April 20, 2010, an underwater blowout and subsequent explosion and fire destroyed the Deepwater HorizonDeepwater Horizon
Deepwater Horizon was an ultra-deepwater, dynamically positioned, semi-submersible offshore oil drilling rig owned by Transocean. Built in 2001 in South Korea by Hyundai Heavy Industries, the rig was commissioned by R&B Falcon, which later became part of Transocean, registered in Majuro, Marshall...
rig owned by Transocean Ltd.
Transocean
Transocean Ltd. is one of the world's largest offshore drilling contractors. The company rents floating mobile drill rigs, along with the equipment and personnel for operations, to oil and gas companies at an average daily rate of US$282,700...
and operating in the Gulf of Mexico under lease to energy giant BP
BP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
, resulting in the largest oil spill in United States history.
Endangered species
The federal Minerals Management ServiceMinerals Management Service
The Bureau of Ocean Energy Management, Regulation and Enforcement , formerly known as the Minerals Management Service , was an agency of the United States Department of the Interior that managed the nation's natural gas, oil and other mineral resources on the outer continental shelf...
gave permission to BP and dozens of other oil companies to drill in the Gulf of Mexico without first getting required permits that assesses threats to endangered species
Endangered species
An endangered species is a population of organisms which is at risk of becoming extinct because it is either few in numbers, or threatened by changing environmental or predation parameters...
.
Alternative investments argument
Global warmingGlobal warming
Global warming refers to the rising average temperature of Earth's atmosphere and oceans and its projected continuation. In the last 100 years, Earth's average surface temperature increased by about with about two thirds of the increase occurring over just the last three decades...
activists have warned that offshore drilling distracts the United States from finding alternative sources of energy which would improve the economy. Developing future alternative energy sources is seen as crucial for the U.S. economy, by both Democrats and Republicans. This is reflected in both statements by the Obama administration and the 2006 Addicted to oil speech by George W. Bush. However, these massive investments will be funded by the present economy, which ties the alternative energy debate into debates on how to manage the economy, especially the mitigation of peak oil
Mitigation of peak oil
The mitigation of peak oil is the attempt to delay the date and minimize the social and economic impact of peak oil by reducing the world's consumption and reliance on petroleum. By reducing petroleum consumption, mitigation efforts seek to favorably change the shape of the Hubbert curve, which is...
. In light of this, some may defend both new oil fields in the Gulf of Mexico and the extraction of unconventional oil such as oil sands in Canada on the grounds that it mitigates peak oil and keeps the economy afloat until it transitions to other energy sources. Others call for shifting existing energy subsidies away from oil towards renewables. The offshore drilling is only a small part of this larger debate.
Relations with Cuba
Although offshore drilling has long been banned in federal waters off the state of FloridaFlorida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
, Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
has been preparing to explore its own offshore area near Florida. The subject became an issue in the 2008 presidential race, with assertions and denials of the reality of Cuban offshore drilling. On 31 October 2008, Brazilian and Cuban presidents Luiz Inácio Lula da Silva
Luiz Inácio Lula da Silva
Luiz Inácio Lula da Silva , known popularly as Lula, served as the 35th President of Brazil from 2003 to 2010.A founding member of the Workers' Party , he ran for President three times unsuccessfully, first in the 1989 election. Lula achieved victory in the 2002 election, and was inaugurated as...
and Raul Castro
Raúl Castro
Raúl Modesto Castro Ruz is a Cuban politician and revolutionary who has been President of the Council of State of Cuba and the President of the Council of Ministers of Cuba since 2008; he previously exercised presidential powers in an acting capacity from 2006 to 2008...
attended a ceremony at which the Brazilian oil company Petrobras
Petrobras
Petróleo Brasileiro or Petrobras is a semi-public Brazilian multinational energy corporation headquartered in Rio de Janeiro, Brazil. It is the largest company in Latin America by market capitalization and revenue, and the largest company headquartered in the Southern Hemisphere by market...
agreed to drill for oil in Cuban offshore waters near Florida.
See also
- Arctic Refuge drilling controversyArctic Refuge drilling controversyThe question of whether to drill for oil in the Arctic National Wildlife Reserve has been an ongoing political controversy in the United States since 1997...
- "Drill, baby, drillDrill, baby, drill"Drill, baby, drill!" was a 2008 Republican campaign slogan first used at the 2008 Republican National Convention by former Maryland Lieutenant Governor Michael Steele, who was later elected Chairman of the Republican National Committee...
", a Republican campaign slogan originally used at the 2008 Republican National Convention - Offshore drillingOffshore drillingOffshore drilling refers to a mechanical process where a wellbore is drilled through the seabed. It is typically carried out in order to explore for and subsequently produce hydrocarbons which lie in rock formations beneath the seabed...
- Offshore oil and gas in the United StatesOffshore oil and gas in the United StatesOffshore oil and gas in the United States provides a large portion of the nation’s oil and gas supply. Large oil and gas reservoirs are found in the sea nearby Louisiana, Texas, California, and Alaska...
- United States oil politics
- Environmental issues in the United StatesEnvironmental issues in the United StatesAs with many other countries there are a number of environmental issues in the United States.-Climate change:The United States is the second largest emitter, after China, of carbon dioxide from the burning of fossil fuels. The energy policy of the United States is widely debated; many call on the...