OUTLOOK
 |
|
Until recently it was a widely held view in both government and the oil industry that new deepwater oil finds were going to be a boon to the oil industry and help meet rising demand, but the Deepwater Horizon spill has ignited debate over the risks associated with offshore drilling and the current moratorium on new operations have clouded the industry’s future. Following the spill, Congressional leaders have cracked-down on industry laxity, putting in jeopardy the future of highly coveted deepwater leases in the Gulf. The recently announced six-month Federal moratorium has dampened what once was considered a promising area for future oil and gas development. The large number of rigs now idle due to the moratorium on all offshore drilling have translated into lost industry jobs, leaving the Obama administration particularly vulnerable to calls that he is pushing his energy and climate agenda at the expense of the American people. With the future of deepwater drilling in doubt, unconventional energy sources, such as Canadian oil sands and shale gas, are also being more closely examined with regard to their potential as well as their environmental impacts. The spill poses risks to offshore drilling in the US, as firms with a stake in the resource now must weigh an increasingly complex set of regulatory, financial, and strategic realties prior to renewing their investment in offshore exploration and production.
\
Source: US EIA 2010
States with Differing Histories on Drilling Adopt Dissimilar Regulatory Stances
The coastal states carry a range of views with respect to coastal offshore drilling, with a tension existing between states, such as those in the Gulf that have a long history of drilling, and states that had been recently considering opening up the areas off their coasts to offshore investment. Since the Deepwater spill, states previously inclined towards expanding offshore drilling – most notably Florida, North Carolina, and Virginia –are largely rescinding their support.
Full article here.
21 June 2010
Alejandro Golding
