Offshore oil drilling in the United States should be legalized

I will first start by listing my contentions for opening offshore drilling in the United States. 1. Cuts reliance on foreign oil The United States consumes nearly one-fourth of the world's oil but produces only about 10%. Its 1.76 billion-acre Outer Continental Shelf, which extends from about 3 to 200 miles offshore, is prime hunting ground. At any moment, a country in our top 15 of oil imports, such as Venezuela or Iraq, could become or already have become threats to our economy. Venezuela (#4 in oil imports) {ftp://ftp. eia. doe. gov. .. } is ruled by a dictator, while Iraq (#6) is currently inhabited by terrorists, American soldiers, and a fledgling government. Are these really the countries we want to depend on for our economy? Because let's face it, even if we want to change what route we take energy wise, oil is going to be in our future for at least the next couple decades. "Under any model of the country's energy future, we will still need more oil and gas over next 20 years," according to Sara Banaszak, senior economist at the American Petroleum Institute. Imagine our country, so strong and stout, being brought down by an unstable foreign country on which we rely for our fuel; our source of power for all manner of machine. Such a notion is completely offensive, and we need to change this now. Offshore drilling can help meet that need to be dependent and will boost domestic economic activity. Senator McCain agrees, stating while he was campaigning. .. 'The ultimate goal, the candidate said: to "stop sending $700 billion a year (for oil) to countries that don't like us very much. "' It is completely absurd to fuel a possible insurgency against America (such as Iraq) as opposed to stimulating our economy and fueling our machines. Who knows where the money we send to these unstable countries is really going, and with something as critical as oil, we shouldn't take the gamble. 2. Increase in Economic Activity There are billions and billions of dollars just laying under sea, waiting for us to claim it. Who knows, with all the oil off our shores, it might even solve the lingering problem of our huge national debt. One thing is for certain, however; it would be irrational and illogical to leave such valuable treasures beneath the ocean floor, for our economy, and our people. There is an estimated 45 billion barrels in the gulf of Mexico alone, not to mention 68 billion barrels which is estimated to be in already legal drilling spots. By most estimates, at least 18 billion barrels of oil can be produced from other areas that are off-limits, on top of 68 billion barrels in areas where drilling is allowed. The 18 billion barrels would be enough to fuel the country for 2ï¿½ years. If you do the math, that's 8.75 years of total independence on oil, leading to hundreds of thousands of more American jobs to those unemployed, and to the families of those employed, it means finally a break in poverty and a chance to help our country grow. It would be useful to figure out if the costs, economic and ecological, outweigh the benefits of producing offshore oil. Luckily, a recent study by Georgetown University economist Robert Hahn and Milken Institute economist Peter Passell offers some insight to this question. Published in the December 2009 issue of Energy Economics, their study "The economics of allowing more U. S. oil drilling," finds that the benefits of producing offshore oil greatly outweigh the costs. In their analysis, Hahn and Passell look at three types of benefits: producer revenues, lower prices to consumers, and less fluctuation in oil prices. These benefits are considered in a scenario in which oil is priced at $50 per barrel, and in another in which it goes for $100 per barrel. (The current price is around $85 per barrel. ) At $50 per barrel they estimate that 10 billion barrels of oil would be recoverable from the off-limits outer continental shelf, and at $100 this rises to 11.5 billion barrels. On the cost side of the ledger they calculate that it would cost $17 per barrel to produce offshore oil at $50 per barrel and $20 per barrel at $100 per barrel. They incorporate a Minerals Management Service estimate of $700 million as the cost of the environmental damage [PDF] caused by producing 10 billion barrels of oil offshore. They include an estimate of damage caused by greenhouse gases produced by burning the oil as fuel, and the direct costs of local air pollution, and traffic congestion and accidents. So what did they find? At $50 per barrel, the benefits of offshore oil production in the formerly off limits areas of the outer continental shelf would garner $492 billion in revenues, $42 billion in lower oil prices, and reduce the cost of oil price disruptions by $42 billion, yielding total benefits of $578 billion. The direct drilling costs would come to $166 billion, environmental costs $1 billion, greenhouse gas damages $1 billion, local air pollution $28 billion, traffic congestion $28 billion, and traffic accidents $32 billion, for a total cost amounting to $255 billion. So at $50 per barrel the benefits of producing 10 billion barrels of offshore oil would be $323 billion greater than its costs. At $100 per barrel, outer continental shelf oil production of 11.5 billion barrels of oil would reap $1.15 trillion in revenues, lower oil prices by $99 billion, and reduce the costs price disruptions by $51 billion, resulting in total benefits of $1.3 trillion. Drilling costs would be $238 billion, environmental costs and greenhouse gas damages would total $2 billion, the costs of local air pollution, traffic congestion, and traffic accidents would be $22 billion, $33 billion, and $38 billion respectively. So the total costs of producing 11.5 billion barrels of offshore oil would be $332 billion. Hahn and Passell calculate that at $100 per barrel, the net benefits of producing offshore oil would come to $967 billion, or a trillion dollars. That, in the feds hands, could save our debt, and bring great changes to this country, while actually helping the environment, which will be discussed on my next contention, but before that, let's think real quick. These numbers are always changing (the price of oil and the amount we use, for instance). We need to put this in to perspective so everyone can actually see the negative effects of keeping all offshore drilling illegal. The costs on the ban: A new study commissioned by the National Association of Regulatory Utility Commissioners (NARUC) details the social, economic and environmental effects of oil exploration on and beneath federal lands. The report estimates that consumer energy costs will increase and cumulative gross domestic product (GDP) will decrease by $2.36 trillion over the next two decades. This is directly from negligence on the part of this country to open up offshore drilling. 3. Oil drilling lowers pressure of natural oil seepage Oil in the ocean naturally seeps out, causing all manner of environmental problems. The pressure in the chambers that contain the oil reach a breaking point, and new oil seep spots pop up often. With oil drills in place, it will alleviate the pressure buildup and allow for an exit point for all the oil, not only benefiting America, but benefiting the environment as well. A risk of oil spills, albeit greatly diminished with improved technology, does exist with new drilling activity. But it would also significantly reduce the pressure on offshore seeps and decreases marine oil pollution. Bruce Allen, co-founder of SOS California has argued to lift state and federal moratoriums on offshore oil production. SOS California's new documentary, A Crude Reality, points out the environmental problems oil seeps present. (. http://www.cfact.org...) I await my opponents response