Obama Approves Drilling in the Alaskan Coast

Environmentalists aren’t too pleased but petroleum companies are: President Obama and his administration will permit Shell to begin drilling this summer off the Alaskan coast, in the Arctic Ocean.

Earlier this year, Obama permitted offshore drilling in an area of the Atlantic Coast. But throughout his presidency, Obama has continued to introduce restrictive measures on carbon dioxide and greenhouse gas emissions. Now he’s trying to appease both sides by allowing Shell to set up shop in the Arctic Ocean — specifically in the Chukchi Sea — but with some limitations. The Interior Department’s Bureau of Ocean Energy Management will be highly attentive to preserving the Arctic ecosystem and Alaska Native ethnic practices; Shell will be held to strict safety guidelines.

Environmentalists are more nervous than ever, dreading that drilling in the Arctic Ocean will lead to another oil spill, worse than the Gulf of Mexico spill in 2010, where millions of cylinders of oil poured into the Gulf and killed 11 workers. Yet, Shell was drilling into an area of the Gulf of Mexico that was almost 5,000 feet deep — the Chukchi Sea is only 140 feet deep, which will present fewer difficulties.

Experts from both sides contend that drilling in the Chukchi Sea is very risky: the area is isolated, without access to roads, cities, or ports for many, many miles. These circumstances don’t exactly lend themselves to speedy cleanup and relief if another oil spill were to occur. In order for the Interior Department to authorize the drilling, Shell had to apply for all the necessary state and federal drilling permits. Previously, Shell was given approval to drill in the Arctic Ocean during the summer of 2012. Shell hadn’t crossed all its T’s and dotted all its I’s though: the company suffered from many safety and operational issues, and even had an oil rig run ashore.

The Interior Department has strived to rectify US drilling regulations, particularly by only approving drilling during the summer and in shallow water. With this plan moving forward, it’s certain that Obama is trying to balance the scales and maintain harmony between environmentalists, and energy and petroleum companies. It is our hope that Shell covers all its bases and we don’t have another BP oil disaster on our hands.

(From New York Times)

Developed and Written by Dr. Subodh Das and Tara Mahadevan June 12, 2015

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Copyright 2015. All rights Reserved by Phinix, LLC. www.phinix.net    skdas@phinix.net

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“Shale-Oil Boom Puts Spotlight on Crude Export Ban” – 1 January 2014, Wall Street Journal

The flood of natural gas might have the US rethinking its ban on crude oil exports, which dates back to the 1970s.

The world’s biggest oil refinery is located in the US, along the Gulf Coast, and is pumping out an oversupply of crude. The abundance of oil is causing prices to crash, forcing producers to look at their other options — i.e. exporting. These last few months, the American Petroleum Institute (API) has been fighting to lift export restrictions, as is Exxon Mobil, the US’s largest energy company. US Energy Secretary Ernest Moniz has more or less agreed, noting that the bans were instituted during the period of an energy dearth, not an abundance.

Arguments on the ban pit environmentalists, producers, consumers and the government all against each other. Proponents contend that removing the ban will boost the US’s trade deficit; opponents want to retain supplies in the US so that we rely less on the Middle East; others worry about the negative effects of increased drilling on the environment and climate.

The US currently exports coal, electricity, gasoline, diesel and natural gas — everything, it seems, but crude. Crude production is on an upswing in the US, largely due to shale formations located in Texas and North Dakota. It’s predicted that these formations will generate around 7.7 million barrels/day in 2014, and, according to the Energy Information Administration (EIA), set to grow by 24% to 9.6 million barrels/day in 2019. The onslaught of oil could drive down prices, ultimately slowing the nation’s energy boom.

The only way Congress is likely to immediately act is if the ban induces layoffs of energy workers. Regardless, any revisions to the law won’t be immediate. But the new year might just be Exxon’s, and other major energy companies’, year.

We believe that US oil companies should be allowed to export crude oil as a tool lower trade deficit, and increase export-related high paying domestic jobs.

See also:
Exxon Presses for Exports

Developed and Written by Dr. Subodh Das and Tara Mahadevan

January 3, 2014

Phinix LLC

Copyright 2014. All rights Reserved by Phinix, LLC.

www.phinix.net    skdas@phinix.net

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