Off Shore Drilling Outline

Offshore drilling has become an essential part of today’s oil production and demand for energy. With the growth of population comes the increasing demand for oil. The oil industry today, is one of the most used providers of energy. Today in the 20th century the majority of the population in America has a car and cars needs gas to run. The oil reserves in the earth that are easily accessible via land are starting to run dry and are becoming harder to find. This is why we have begun to see more and more offshore oil drills. Although there are benefits of offshore drilling such as profit, lower gas prices, and becoming less dependent on foreign oil. There are also many drawbacks in which if something were to go wrong, the mistake would be catastrophic impacting the environment, the nature, and have trickling effects all around the world.

Offshore oil drilling is a big contribution to obtaining oil for the U.S., but it is also a big controversy to continue offshore drilling or to stop the drilling. most of the world’s energy comes from the use of oil, even though there are other resources to use oil is the most commonly used, But there is a shortage in oil especially in the U.S. so they suggest drilling for oil in the ocean to reach unexplored oil wells. There are benefits in offshore oil drilling such as jobs, domestic fuel, and environmental benefits. Those that argue the U.S. should expand the offshore oil drilling believe that the benefits drilling brings will help the U.S. out of its foreign oil dependency. Although the side effects are have big impacts just like the benefits. The side effects include environmental risks, oil dependency, and whether or not there is enough oil. Offshore oil drilling is a subject not many know about, there is a lot of research that still needs to be done and a lot of research that still does not give positive conclusions. All in all I believe Energy Efficiency is the best solution to offshore drilling an example would be using electric cars, using solar, and wind power for electricity, and changing how we obtain energy altogether.

In Virginia alone about 28,000 jobs will be created such as engineers and oil supply developers. The drilling will affect each state in some way weather it be transportation, stocking, manufacturing or a vast number of jobs. What better way to help American citizens than making national jobs instead of creating foreign jobs.

Oil has been an important resource of energy in America “since the discovery of the Spindletop geyser in 1901. It drove huge growth in the oil industry in America. Within a year, more than 1,500 oil companies had been chartered, and oil became the dominant fuel of the 20th century and an integral part of the American economy” (History.com Staff). This had developed the construction of pipelines to move the oil within the country and offshore in coastal waters. Recently, the federal government approved the construction of a new pipeline that would be transporting crude oil from North Dakota to Illinois.

The origination of this case study begins on one brisk morning back on the 19th of September in 2008 when TransCanada first submitted their application to the U.S. State Department to build the Keystone XL pipeline. The Canadian based energy infrastructure company proposed a 1,179-mile, 36-inch diameter pipeline that would transport crude oil from Canada, through Montana, South Dakota, and Nebraska. Along with transporting oil from producers in Texas, Oklahoma, Montana and North Dakota (Figure 1).

Offshore drilling is a topic of extreme debate and argument and one of the most debated parts of that is whether or not it benefits the economy in the U.S. One of the first things to note is that stopping offshore drilling could potentially damage the U.S. economy, and therefore how much energy we can overall use. According to Mason, Joseph R., author of, "The Oil Industry Supports Many Louisiana and Gulf Region Economies", we can see the statement, "the moratorium would produce broad economic losses within the Gulf and throughout the nation as a whole". We can gather, from this, that ceasing offshore drilling/offshore oil production, could potentially harm the U.S. economy, and as I said before the economy being damaged overall decides

The production of oil is one of Canada’s greatest assets as it brings in lots of profit but British Columbia is one the most beautiful places in the world and is a prime tourism area. This leads to the question is oil transportation right for British Columbia? Enbridge plans to build two pipelines that will carry oil from “central Alberta to coastal BC” (Alternatives Journal, 2012). Enbridge Incorporated is a company that is a main transporter of natural gas, crude oil and other liquids in Canada, as well as a major operator of pipelines in North America. Their plan is to run two 1170-kilometer pipelines across BC that will eventually be moving about 520,000 barrels of oil per day; this

Drilling supporters still argue that there are benefits to drilling that may outweigh environmental harms. In addition to helping America gain energy independence, drilling has economic benefits. For Alaskans, tax money is important. Other Americans worry that gas prices are too high. According to Senator George Allen, these high prices come from a reliance on OPEC   (US Fed News Service

The Keystone XL Pipeline is an oil pipeline system that runs in parts of Canada and the United States. The pipeline runs from the Western Canadian Sedimentary Basin in Alberta, Canada, to refineries in Illinois and Texas with a distribution center in Cushing, Oklahoma. The pipeline has provided several jobs throughout the two countries. Many people have concerns about spills, emission, and the amount of oil left. This paper explains the location of the pipeline, the problems and concerns that surround it, and the positive outcomes it has created.

The Keystone XL Pipeline has been a major controversial issue in the news lately regarding the expansion of a pipeline from Alberta, Canada to the Gulf of Mexico. This pipeline will cross six states including Montana, Nebraska, Kansas, Oklahoma, South Dakota, and Texas. This pipeline will transport 830,000 barrels of crude tar sands oil to the United States. Despite the immediately benefits for the economy with the installation, the decision is to decline the Keystone XL Pipeline proposal. This decision is based mainly on two factors: the environment and the economy in the long run.

The projected Dakota Access Pipeline would be beneficial for various reasons. To start, this huge creation would be 1,172 miles long and run "from North Dakota's northwest Bakken region down to a market hub outside Patoka, Illinois" (Mother Jones). With this being said, the construction of this massive pipeline would provide an estimated 12,000 jobs. In addition, crude oil would be able "to reach major refining companies in a more direct, cost-effective, safer and environmentally responsible manner" (Dakota Access Pipeline). To support the demand for crude oil now, railroads and trucks are transporting it to major U.S. markets. However, if this pipeline were to be approved it

This is where the politics come into play with the decision of the pipeline. The State Department estimates a total of 42,100 jobs could be created from the building of the pipeline. However, this number includes “indirect” and “induced” jobs so the actual number is somewhere around 3,900 construction jobs (temporary) directly if the job is done in one year and about 50 permanent jobs. (Pipeline Primer, 2014). The building of the pipeline also has an estimated $3.4 billion contribution to the American economy. These few, often exaggerated by the House Republicans, are part of the advantages and reasons to support building the

Nearly all $3.8 billion was to be spent in the four state region of Iowa, North Dakota, South Dakota, and Illinois. North Dakota received 37%, Iowa 27%, South Dakota 22% and Illinois 14%. The initial spending would provide an influx of capital into the local economies. Additionally, due to direct, indirect, and induced spending the project is expected to bring nearly $5 billion in production. As a result of the influx in capital and spending, there is an expectation of a large short term employment increase resulting in increased short term spending. In the long run, the expectation is that there will be a significant portion of jobs brought to the area which will also provide additional spending. Table 1 shows the breakdown of the direct, indirect, and induced labor income in each state. The total expected labor income, or wages earned through new jobs, totals $1.9 billion. The increased employment is expected to bring an additional 32,000 job years (or sum of years employed) to the region. Table 2 shows the output, labor income, and job-years in the region. The argument for economic benefits in the region is rooted in the capital infusion and employment opportunities in the region. According to CNBC, the region, and particularly North Dakota is extremely dependent on oil production. During a strong oil market in 2014 ND GDP grew 6.2% while US GDP grew only 2.2% (Pofeldt 2015). The

The ongoing debate regarding the urge to approve the Keystone XL Pipeline Project through Keystone XL Pipeline Project Approval Act has become more interesting as the President of United States, Barack Obama vetoed the act proposed. The Senate tried to override the veto recently; however, such effort end up in failure as their vote failed to achieve two third of the required vote in order to override the veto (“Text”). This project has been the talking of people for years as some wonder the advantage and the disadvantage of this project. Recent poll shows 61% of U.S. citizens want the Keystone XL Pipeline Project Approval Act to be passed. This project requires the approval from the U.S Department of State because the projected pipeline will cross the international border between U.S. and Canada. In addition, according to Molina, the approval of this project means tar sands crude oil will be transported as much as 830,000 barrels per day from Alberta, Canada to southern Nebraska. This project is the extension of the current Keystone pipeline which transport crude oil to Illinois and Oklahoma since 2010 (170). Proponent of this project believe the approval of this project will benefit the citizens. According to Korman, this project will provide the states with safe, secure, and sustainable sources of energy; and enhance the economy growth –

Another benefit of offshore oil drilling consists of increasing job opportunities for people. The unstable economy in the United States results in people losing their jobs quite often. In the book Offshore Drilling, the loss of job opportunity in the United States is explained this way: