“Obama Floats Offering First-Ever Drilling Lease in Atlantic” – AP, 27 January 2015

President Obama has introduced a plan that would allow drilling in parts of the Atlantic Coast, while simultaneously putting an end to any drilling in certain areas in Alaska.

The administration’s proposal concentrates on Virginia, North Carolina, South Carolina, and Georgia, and will sell areas 50 miles off the states’ coasts to oil companies beginning in 2021. Oil companies have been denied access to these areas in the Atlantic Ocean for years, particularly since drilling in those areas was banned in 2008. Additionally, the proposal includes leases for regions in the Gulf of Mexico and Alaska coast. Leases will be sold between 2017 and 2022.

Many politicians cited the 2010 BP oil spill in the Gulf of Mexico as a reason not to move forward with the proposal, which remains the biggest oil spill of its kind in the US. Since then, regulations on offshore drilling have not improved; Congress has yet to adopt new laws that would make drilling safer. Many believe that drilling in these regions is a misguided way of developing energy — and acquiring energy independence — in the US.

However, politicians in the Southeastern states are backing Obama’s plan, asserting that the new venture will boost the economy by creating jobs and encouraging investments. Currently, the US is experiencing a flood in oil, which has caused oil and gas prices to significantly drop.

Areas chosen to be leased and sold are subject to change. Oil generation from offshore drilling supplies 16 percent of the US’s oil. In order to find oil and gas deposits under the ocean, firms will have to run seismic imaging surveys; a process that can take years, the firms attach seismic air guns to their boats that they will drag for miles on the ocean surface. The guns then radiate air and sound, which assists in mapping 2D and 3D images of the ocean floor.

(From Associated Press)

Developed and Written by Dr. Subodh Das and Tara Mahadevan

January 28, 2015

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“GOP oil titan: Keystone’s irrelevant” – Politico, 14 November 2014

Though the Keystone XL pipeline has been a hot-button issue with environmentalists, it seems that it has become an irrelevant discussion. The pipeline was introduced in 2005, and still no decision has been made about its construction. In October, the House approved a bill that would authorize the pipeline; however, a few days later, the bill failed to pass through the Senate. If it had passed, the bill would have gone directly to President Obama, though it’s likely he would have vetoed it.

But all that might change when the new Republican-majority Congress reconvenes in January. In fact, it has become the mission of Republican Senator Mitch McConnell (KY) to have the bill pass. It’s probable that the bill will pass both Congress legislatures, but the bill will need 67 votes in favor in order to quash a presidential veto.

Regardless of the pipeline’s importance, proponents firmly contend that the $8 billion pipeline will allow for a flood of new jobs and bolster North American energy independence; but opponents believe that it will increase fossil fuels and further incite the effects of climate change.

It seems like the oil industry has moved on from Keystone; oil companies are employing other pipelines to carry their oil. Furthermore, the US now has an abundance of oil, which has reduced prices. Bringing more oil in from Canada doesn’t seem like the best plan.

What some suggest — like Harold Hamm, the CEO of Oklahoma’s Continental Resources — is that the US should end its crude oil export ban, which would make the oil market fairer for US oil companies. Congress imposed the ban in the 1970s due to the worry that we were becoming too reliant on foreign oil. Now that US oil prices have dropped, Saudi Arabia is attempting to undercut our prices so that it can recover what it has lost in the market. Further, a lift on the ban could help Ukraine and European countries that are under the thumb of Russian President Vladimir Putin.

Conversely, if the ban is lifted, we could see gas prices soar; lawmakers would become our scapegoat.

(From Politico)

Developed and Written by Dr. Subodh Das and Tara Mahadevan

November 29, 2014

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“White House touts energy policies as rules loom” – Associated Press, 30 May 2014

With continued backlash, President Obama is still trying to sell the US on his new energy policy and attempting to showcase the regulations as economically advantageous through job creation, cleaner energy sources, and protection of the US against foreign turmoil. In a 42-page report to be released on Thursday, the White House contends that the US’s natural gas boon is both economically and environmentally beneficial.

The report’s purpose is to counteract the disapproval of the EPA‘s new regulations on coal-fired power plants, which many expect will inflate electricity costs, thwart job growth, and impede economic prosperity. Conservatives and their allies believe that reducing emissions won’t actually aid the environment, and only become a hinderance to the economy.

The White House reports argues that increased domestic energy production, wind and solar power, and decreased dependency on oil have largely bolstered the security of US energy and the economy, and speak directly to the impacts of climate change by reducing carbon emissions.

The US’s upswing in natural gas safeguards the economy, and everyone’s pockets, if oil-producing countries undergo turmoil and cause oil prices to skyrocket. If we continue to produce energy sources domestically, then the US reaps the benefits—that means more money and more jobs.

Regardless, the US is still the number one consumer and importer of oil. The advent of natural gas hasn’t been embraced by everyone—the process of extracting natural gas from shale rock presents some unease with many environmental groups. The decline in oil consumption started in 2006, though that fall is ascribed to the recession. At the same time, natural gas consumption has increased by 18% since 2005.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

May 30, 2014

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“Coal Scrubbers Give Illinois Basin New Life” – Wall Street Journal, 9 January 2014

Natural gas has been dominating the news, and many feel that the influx of the major energy source has inadvertently waged a war on coal. US coal production dropped 7% in 2012, but now coal is making a resurgence, mainly due to the Illinois Basin, which extends from Illinois to Missouri, Indiana and Western Kentucky.

The Illinois Basin was a key US coal basin, until the Clean Air Act of 1970 passed, making the Illinois Basin unfavorable for mining. Illinois coal has elevated levels of sulfur, which is partially responsible for acid rain. However, widespread use of scrubbing technology has allowed for mines in Illinois to reopen—scrubbing technology can lift 97% of a coal-fired power plants’ sulfur dioxide. The Energy Information Administration (EIA) predicted that Illinois would generate 56 million tons of coal in 2013, a 70% increase from 2010. The Illinois Basin is anticipated to produce more coal than Central Appalachia, another major US coal basin.

While natural gas has been a huge boost to our economy and is the cleaner energy source, the coal industry provides the US with many jobs. There will be more jobs available as the basin reopens near railroads and along the Mississippi River.

As the US inches towards a more desired energy independence and security, we must continue to pursue a prudent “all of the above ” energy strategy.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

March 21, 2014

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