merits of offshore drilling

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What are the merits of offshore drilling? [ ] [Edit] Pro Benefits: •A significant portion of the domestic oil production comes from the offshore Gulf of Mexico region. Similarly su!stantial oil reser"es in this region #ill result in oil production for some years to come. •As a glo!al commodity the price of oil is determined !y the #orld#ide forces of supply and demand. $he oil produced in the offshore Gulf of Mexico region #hile significant for the %.S. ma& es up a "ery small percentage of the #orld#ide oil supply. As such the remo"al of offshore oil from the glo!al oil supply #ill not ha"e a lasting material impact on the price of oil. •$he go"ernment earns re"enue through royalty fees and other receipts on the offshore drilling industry. $hese re"enue receipts can !e used for the general !enefit of society. 'osts: •(ollutants are released into the air and #ater through drilling acti"ity. •)ffshore drilling causes ris&s to employees. $he a"erage fatalities are *.+ per year . •)ffshore drilling negati"ely affects onshore infrastructure causes under#ater noise pollution and results in destruction of the ocean floor. $hese lead to loss of tourism loss of fishing and health costs. •'lean,up costs resulting from oil spills are [ ] [Edit] Con A re"ie# of the -E$ Benefits 'osts and Benefits/ 0elated to )ffshore 1rilling: 2e conducted a cost !enefit analysis on offshore drilling in order to esta!lish #hy offshore drilling should not !e !anned. 2e found that there are 345.6 !illion dollars in positi"e !enefits associated #ith )ffshore drilling. Some assumptions that #e made #ere that #e only included the costs !enefits and spills on offshore oil rigs platforms and pipelines. 2e did not include those costs7!enefits associated #ith transporting oil. 2e assessed our data o"er 68 years 9888,9868/ and used data from ; 988<. $o !egin #ith #e assessed the pro!a!ility of an oil spill e"en occurring. As it turns out the pro!a!ility is actually =uite small 8.+>. ?n order to determine this #e accessed the Bureau of )cean Energy Management statistics for the num!er of oil spills o"er +8 !arrels that ha"e occurred o"er the past 68 years and found that num!er to !e 6*5 , #hen you di"ide the num!er of oil spills !y years and the num!er of oil platforms @@< total for %.S. )ffshore drilling/ you #ill come up #ith the pro!a!ility of an oil spill occurring #hich one can see is "ery lo#. -ext #e examined the pri"ate costs to oil companies for offshore drilling. %sing !oth the oil spill occurrence pro!a!ility that #e determined and data from the 1eep#ater oriCon oil spill and B(Ds costs #e identified these pri"ate costs per year for companies. $o summariCe those num!ers are: • 'osts of )il Spill includes damage to oil rig

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7/26/2019 Merits of Offshore Drilling

http://slidepdf.com/reader/full/merits-of-offshore-drilling 1/19

What are the merits of offshore drilling?

[ ][Edit]

Pro

Benefits:

•A significant portion of the domestic oil production

comes from the offshore Gulf of Mexico region.

Similarly su!stantial oil reser"es in this region #ill

result in oil production for some years to come.

•As a glo!al commodity the price of oil is

determined !y the #orld#ide forces of supply and

demand. $he oil produced in the offshore Gulf of

Mexico region #hile significant for the %.S. ma&es

up a "ery small percentage of the #orld#ide oil

supply. As such the remo"al of offshore oil from the

glo!al oil supply #ill not ha"e a lasting material

impact on the price of oil.

•$he go"ernment earns re"enue through royalty

fees and other receipts on the offshore drilling

industry. $hese re"enue receipts can !e used forthe general !enefit of society.

'osts:

•(ollutants are released into the air and #ater

through drilling acti"ity.

•)ffshore drilling causes ris&s to employees. $he

a"erage fatalities are *.+ per year.

•)ffshore drilling negati"ely affects onshore

infrastructure causes under#ater noise pollution

and results in destruction of the ocean floor. $hese

lead to loss of tourism loss of fishing and health

costs.

•'lean,up costs resulting from oil spills are

[ ][Edit]

Con

A re"ie# of the -E$ Benefits 'osts and Benefits/

0elated to )ffshore 1rilling:

2e conducted a cost !enefit analysis on offshore

drilling in order to esta!lish #hy offshore drilling

should not !e !anned. 2e found that there are 345.6

!illion dollars in positi"e !enefits associated #ith

)ffshore drilling. Some assumptions that #e made

#ere that #e only included the costs !enefits and

spills on offshore oil rigs platforms and pipelines.

2e did not include those costs7!enefits associated

#ith transporting oil. 2e assessed our data o"er 68

years 9888,9868/ and used data from ; 988<. $o

!egin #ith #e assessed the pro!a!ility of an oil spill

e"en occurring. As it turns out the pro!a!ility is

actually =uite small 8.+>. ?n order to determine this

#e accessed the Bureau of )cean Energy

Management statistics for the num!er of oil spills

o"er +8 !arrels that ha"e occurred o"er the past 68

years and found that num!er to !e 6*5 , #hen you

di"ide the num!er of oil spills !y years and the

num!er of oil platforms @@< total for %.S. )ffshore

drilling/ you #ill come up #ith the pro!a!ility of an

oil spill occurring #hich one can see is "ery lo#.

-ext #e examined the pri"ate costs to oil companies

for offshore drilling. %sing !oth the oil spill

occurrence pro!a!ility that #e determined and data

from the 1eep#ater oriCon oil spill and B(Ds costs

#e identified these pri"ate costs per year for

companies. $o summariCe those num!ers are:

• 'osts of )il Spill includes damage to oil rig

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expensi"e and damaging.

o$he B( oil spill caused se"ere losses for the

tourism and fishing industries.

o$he hea"y damage of the B( oil spill has prompted

a costly regulatory response.

o2hen the dispersant mixes #ith crude oil humans

face danger of: "omiting s&in rashes respiratory

pro!lems li"er and &idney failure ulcers

neurological pro!lems and death.

Gi"en the o"er#helming costs and relati"ely modest

!enefits of offshore drilling #e #ill !e !etter off

#ithout it.

containment costs cleanup costs lost oil and

litigation costs multiplied !y the pro!a!ility of an oil

spill/: 36@4 Million

• )perational 'osts ?ncludes insurance la!or

super"ision payroll food expense la!or

transportation surface e=uipment operating

supplies communications and administration: 3@5

Billion

• Maintenance 'osts Annual costs to maintain an

ade=uate safety program and added regulatory

costs/: 3@5 Billion

• Additional (u!lic 0elations 'osts ?ncludes costs to

restore reputation of industry and companies after oil

spill multiplied !y the pro!a!ility of an oil spill/:

38.8+ million

• $otal: 3@58 Billion

$o determine indirect costs associated #ith offshore

drilling #e examined the loss to the economy due to

fatalities and7or inuries. • Falue of li"es lost on oil

platforms from 9888,9868: 369<*9 • Falue of

inuries on oil platforms from 9888,9868: 3+8*@

2e also examined the effect of offshore drilling and a

potential oil spill on the fishing and tourism

industries. 2e focused our research on the Gulf

States and the data from the 9868 1eep#ater )il

spill. 2e also too& into account a multiplier effect of

lost spending and tax re"enue due to the loss of the

tourism and fishing industry.

• Mississippi Expected oss: 36.9@ Million

• Ala!ama Expected oss: 3+.65 Million

• ouisiana Expected oss: 3*.5 Million

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• lorida Expected oss: 368.95 Million

• Multiplier Effect of ost Spending and $ax 0e"enue:

[email protected] Million

inally the damage to ecosystem from drilling for oil

#as determined to !e: 3@*656@65. $his estimation

#ill !e discussed in further depth in a follo#ing

paragraph.

$he total of all costs is: 34.9 Billion

$here are many monetary !enefits to offshore drilling

that help to offset the costs. irst #hen one examines

these =uantifia!le measures according to our cost

!enefit analysis and using data from the ;988<

)ffice of -atural 0esources 0e"enue and se"eral

other sources the %.S. each year gains 36@9.@ Billion

in !enefits from "arious sources. Bro&en do#n into

su!categories this amount is comprised of:

• 0e"enue from eases 3+. Billion/

• 0e"enue from Ho!s 3<.+ Billion/

• $otal 0e"enue for (roducers 3688. Billion/ and

• Energy Security Benefits 364.6 Billion/.

)ur estimations #ere !ased on "ery conser"ati"e

num!ers for re"enue employment figures and price

of oil per !arrel 3+8/. $o determine the amount of

 o! re"enue #e determined the num!er of proected

employees generated from offshore drilling their

a"erage income and then applied a multiplier affect

of 6.5 to account for spillo"er. or example in the Gulf 

of Mexico there #ere 68<88 proected employees

#ith a 35+9+@ a"erage income there!y generating a

total potential income of 35.<* !illion. Although one

could =ui!!le o"er the num!er of potential o!s

created #e purposely used a conser"ati"e estimate

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for !oth income and employment creation for that

"ery reason.

urthermore #hen determining the energy security

!enefits #e #ere a!le to deduce that there is an

annual price,reduction !enefit and an annual reduced

economic !enefit !oth totaling 36@.* Billion. $o

determine these amounts #e multiplied the proected

%.S. oil production !y the amount the %.S.

consumers #ould !enefit !y from this increase. $his

amount of 35 #as determined !y ahn and (assell in

their research for their article on the effects of

increased %.S. oil production. 2e calculated these

amounts under the assumption that since the %.S.

has such a large mar&et share and !uying po#er

that if the %.S. #ere a!le to produce more oil and

!uy less from domestic suppliers then there #ould

ultimately !e an increase in Supply and there!y a

decrease in o"erall price and consumer surplus.

Admittedly this is a transfer from foreign producers

to %.S. consumers ho#e"er it is in the %.S. !est

economic interests for this shift to occur.

)"er"ie# of Benefits7'osts to )il 'ompanies

← Some of the principle sta&eholders in offshore

drilling are the %.S. oil companies that reap

tremendous !enefits from oil re"enues at

considera!ly high costs. $he primary costs to

producers for engaging in offshore drilling are

annual operational and maintenance fees.

)perational costs include a !road range of fees

such as insurance la!or a full discussion of o!s

is discussed !elo#/ super"ision payroll food

expense la!or transportation surface

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e=uipment operation supplies communications

administrati"e costs etc. Based on 988< data

operational costs for all oil platforms are

estimated to !e approximately 3@@.< !illion per

year %.S. Energy ?nformation Administration

9868/. )il companies also spend approximately

3@@.< !illion annually to maintain an ade=uate

safety program Beasley Allen egal -e#s

9868/. $his cost includes the increased

expenditure in re=uired regulation that #as

precipitated !y the 1eep#ater oriCon oil spill.

← ?n the e"ent of an oil spill producers are also

responsi!le for paying for the damage caused !y

the spill. 'osts associated #ith an oil spill include

damage to the oilrig containment costs cleanup

costs lost oil and costs of litigation. 1ra#ing from

se"eral sources of data the a"erage cost of an oil

spill to the producer is estimated to !e 394.4

!illion 1aily inance 9868I En"ironment -e#s

Ser"ice 9868I 0esources for the uture 9868I

2ashington (ost 9868I -; Stoc& ExchangeI B(

9868/. o#e"er gi"en that the pro!a!ility of an

oil spill occurring is incredi!ly lo# 8.+>/ #e can

discount the cost !y that pro!a!ility. Multiplying

the total cost of an oil spill 394.4B/ !y the

pro!a!ility of it occurring 8.+>/ #e estimate the

cost of an oil spill to !e 36@4 million. ?n addition

to paying for the literal clean up of oil a company

must figurati"ely clean up its image and restore

the reputation of the oil industry at large. or

example B( spent approximately 368 million in

9868 on pu!lic relations costs to restore its image

follo#ing 1eep#ater oriCon $imes )nline

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9868/. actoring in the pro!a!ility of an oil spill

occurrence the cost of pu!lic relations ends up

!eing approximately 3+8888. ?n total the annual

costs to oil companies from operations

maintenance oil spill clean,up factoring in the

8.+> pro!a!ility of it occurring/ and pu!lic

relations in the e"ent of an oil spill factoring in

the 8.+> pro!a!ility of it occurring/ are

approximately 34 !illion.

← 2hile there are significant costs associated

#ith offshore drilling producers #ould not

engage in !usiness unless it #as profita!le. $he

primary !enefit to oil companies is the re"enue

generated from selling !arrels of oil. According to

the Bureau of )cean Energy Management

0egulation and EnforcementDs fi"e,year lease

proposal for 988*,9869 there is an estimated 68

!illion !arrels of oil a"aila!le for production in the

Alas&an 0egion Gulf of Mexico 0egion and Mid,

Atlantic B)EM0E 988*/. 1ra#ing on these

estimates and assuming a conser"ati"e "alue for

the price of a !arrel of oil 3+8/ ahn estimates

producer re"enue to !e approximately 3686

!illion per year ahn 0 and (assell ( 9868/.

2hen the %.S. produces domestic oil the %.S.

producer surplus i.e. net !enefits to producers/

represents a transfer in surplus from foreign

producers to %.S. producers. 'omparing the

gross !enefits of 3686 !illion to the gross costs of 

34 !illion #e see there is a net !enefit of 3@@

!illion per year for %.S. oil companies.

•0ecap of 'osts7Benefits to (roducers: •$otal Annual

'osts: 34.9B •)perational 'osts: 3@5B

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•Maintenance 'osts: 3@5B •)il Spill 'osts in the

e"ent of an oil spill/: 36@4M •(u!lic 0elations 'osts

in the e"ent of an oil spill/: 38.8+M •$otal Annual

Benefits: 3688.B •(roducer 0e"enues: 3688.B

•$otal -et Benefits to )il 'ompanies: 3688.B ,

34.9B J [email protected]

0eferences for )il 'ompanies: •Achen!ach H. and

ahrenthold 1. K)il spill dumped 5.< million !arrels

into Gulf of Mexico latest measure sho#sL $he

2ashington (ost August @ 9868. •KB( Esta!lishes

398 Billion 'laims und for 1eep#ater oriCon Spill

and )utlines 1i"idend 1ecisionsL B( (ress 0elease

Hune 64 9868. •Bureau of )cean Energy

Management 0egulation and Enforcement:

 K(roposed inal (rogram )uter 'ontinental Shelf )il

and Gas easing (rogram 988*,9869L 988*. •'ohen

M. KA $axonomy of )il Spill 'ostsL 0esources for the

uture May 9868. •K'rude )il (rice istoryL -e#

;or& Stoc& Exchange 9868. •KGulf )il Spill

'ontainment Attempt ailsL En"ironment -e#s

Ser"ice May 68 9868. •ahn 0. and (assell (.

L$he Economics of Allo#ing More %.S. )il 1rillingL

9868 Energy Economics @9 @/: 4@,4+8. •-iland

. K)ffshore oil execs fought ne# safety

impro"ements !efore Gulf explosionL Beasley Allen

egal -e#s April 9 9868 •K)il and Gas ease

E=uipment and )perating 'osts 6<<5 $hrough 988<L 

%.S. Energy ?nformation Administration Septem!er

9 9868. •Scott M. K$he )il 0ig ireNs 'osts AreMounting astL 1ailyinance April 99 9868.

[Edit]

[ ]

[ ]

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[[ ][ ]

What are the risks of US dependence on foreign Oil?

[ ][Edit]

Pro

$he %.S. meets a!out a =uarter of its oil needs from

domestic sources. )f the domestic oil production

less than a third comes from the offshore Gulf region.

$his means that oil coming from the offshore region

is a much smaller part of the domestic oil needs.

$here are not enough domestic resources a"aila!le

onshore or offshore #hich #ill reduce our

dependence on foreign oil. 2e cannot drill our #ay

out of dependence on foreign oil. ?nstead of !earing

the hea"y cost of drilling offshore #e should focus

our attention on alternati"e sources of energy. 'lean

energy is on the horiCon. Alternati"e energy sources

are solar #ind #ater !iomass geothermal

hydrogen and fuel cells. Benefits include reduction in

dependence of foreign oil gro#th of KgreenL o!s

and increased price sta!ility.

[ ][Edit]

Con

$he %nited States consumes a!out t#enty,threepercent of the #orldDs supply of oil #hile onlyproducing ten percent domestically. As a result the%nited States is dependent on imports for fifty,t#opercent of its oil consumption according to the %S

Energy ?nformation Association.

urthermore sixty percent of the #orldDs oilproduction comes from the highly "olatile (ersianGulf region creating economic and political ris&sei!y/. 0elying hea"ily on oil imports exposes the%S mar&ets to price shoc&s and the mar&et po#erof &ey exporters li&e )(E'. or example acarteliCed producer #ith mar&et po#er can impose

higher prices than the efficient mar&et "alue.oo&ing at the graph assume the supply ofimported oil is inelastic and the %S is a price ta&eron the #orld mar&et/ it is possi!le to see ho# acarteliCed oil exporter can dri"e prices up !yproducing OD instead of OP Q creating a price hi&eand loss for consumers represented !y the red !oxas #ell as dead#eight loss classified !y the !lac&triangle. $his happens !ecause the demand for oil inthe %S exceeds the supply and it is possi!le for &eynet exporters to exploit the mar&et.

$he %nited States could mitigate or eliminate this

economic and political ris& !y increasing itsdomestic supply of oil through the expansion

offshore drilling. ?ncreasing offshore drilling and

reducing %S dependence on foreign oil also has

annual price,reduction !enefits and annual reduced

economic,disruption !enefits ahn/. Annual price,

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reduction helps consumers !y reducing demand for

imported oil that could marginally decrease the

price of a !arrel Q transferring surplus from foreign

exporters to consumers. ?ncreasing domestic

production also results in a transfer of economic

surplus from foreign producers to %S producers

#hich translates to higher %S tax re"enues. Annual

reduced economic,disruption !enefits refer to the

reduction in economic costs of disruption associated

#ith the %S economy adusting to rapid oil price

fluctuation. Additional political !enefits include

diminishing the po#er of carteliCed oil supply

creating sta!le domestic oil supply and !uffer

stoc&s and strategic military ad"antages that come

from less dependence on middle,eastern oil

exporters ei!y/.

[Edit]

[ ]

[ ]

[ ][ ][ ]

What are the environmental costs associated with offshore drilling?

[ ][Edit]

Pro

)ffshore drilling poses a multitude of

detrimental effects to the ocean land and plant

and animal life Q essentially e"ery ecosystem it

enters.

•)il slic&s are formed during oil spills #hen oil

[ ][Edit]

Con

$he total en"ironmental costs associated #ith offshore

drilling are calculated using a com!ination of an estimate

of the pu!licDs #illingness to pay to a"oid a large oil spill

the pu!licDs #illingness to accept oil drilling status =uo/

and an estimation of the use "alue of the areas in #hich

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spreads out throughout the #ater at the top of

the ocean. $hese oil slic&s consist of a thic&

layer of crude or refined petroleum oil also

&no#n as Kmousse L/ !ecoming stic&ier o"er

time and coating and clinging to roc&s and sand

#hen they reach a !each. ?f they mo"e further

into coastal marshes mangro"e forests or

other #etlands they are a!sor!ed !y and

damage the plants and grasses. $hese regions

experience erosion and contamination and

ultimately !ecome unsuita!le to function as

#ildlife ha!itats.

•)il slic&s also co"er and poison the plan&ton

marine algae and marine in"erte!rates and the

!odies of animals in their "icinity including fish

!irds and other food species/. $hey #eigh do#n

the feathers and fur of these animals #hich

can lead to dro#ning hinder the a!ility to

escape from predators and cause hypothermia

due to reduced insulation a!ility.

•As a result of this contamination marine and

coastal animals experience damage to their

central ner"ous system li"er and lungs

ingestion Q the reduced a!ility to eat and digest

food due to cell damage in the intestinal tract ,

reproduction pro!lems and mass mortality

#hich ultimately interrupts the natural food

chain.

•Among many other #ays healthy oceans and

coastal ecosystems pro"ide "alue !y remo"ing

car!on from our atmosphere and sta!iliCe

temperature. 2hen contaminated !y oil spills

that may occur due to offshore drilling their

a!ility to ac=uire and store atmospheric car!on

drilling occurs. $he nonuse "alue for the areas #here

offshore drilling occurs are "irtually Cero as the oil rigs

are usually positioned a great distance from the shoreline

in #ater that is generally not considered Kpristine.L $o

estimate these =uantifia!le en"ironmental costs the %S

1epartment of the ?nterior de"eloped an )ffshore

En"ironmental 'ost Model. $he model calculates use

"alue the largest portion of en"ironmental costs !ased

on an estimate of the "alue of ad"erse impacts on air

and #ater =uality marine and land ha!itats and animal

populations as #ell as tourism onsite and in the near!y

coastal areas MMS/. or this analysis only those

en"ironmental costs that are easily =uantifia!le are

considered and they are calculated using an )ffshore

En"ironmental 'ost Model de"eloped !y the %S

1epartment of the ?nterior. $he model estimates that the

total en"ironmental costs associated #ith offshore drilling

to !e 3*88 million per 68 !illion !arrels or alternati"ely

38.8*7!arrel. Gi"en the 988< %S offshore oil production

rate of +@8+<8988 !arrels7year the en"ironmental

costs for %S offshore oil drilling amount to a!out 3

3@*656@65 per year. %S oil companies must offset this

cost to the en"ironment !y earmar&ing 3<88 million per

year to en"ironmental preser"ation and pu!lic7pri"ate

economic programs. $hus although it is some#hat

unclear ho# offshore drilling #ill fundamentally change

the ecosystem monetary !enefits for the en"ironmental

impact of offshore drilling are li&ely to offset and possi!ly

e"en out#eigh costs to the en"ironment.

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for long periods of time is significantly

diminished .

in&s:http:77###.greenli"ingtips.com7!logs7645

 7Effects,of,oil,spills.html 

http:77en"ironment.a!out.com7od7petroleum7a7

oilRspillsRandRen"ironment.htm 

http:77marinelife.a!out.com7od7conser"ation7tp7

effectsofoilspills.htm 

http:77###.#aterencyclopedia.com7)c,(o7)il,

Spills,?mpact,on,the,)cean.html 

http:77###.en"ironmentamerica.org7home7repo

rts7report,archi"es7ocean,conser"ation7healthy,

oceans7too,much,at,sta&e,dont,gam!le,#ith,

our,coasts 

[Edit]

[ ]

[ ]

[ ][ ]

How will banning offshore drilling affect employment in the region?

[ ][Edit]

Pro

•)il spills partly due to offshore drilling/ impose detrimental effects on

employment. -ot only do offshore oil rig #or&ers lose their o!s !ut

those #or&ing in other industries dependent on an unpolluted coastline

such as tourism and recreational and commercial fishing/ suffer to a

much greater extent.

•%.S. oceans and coasts are actually #orth more as #ild regions than oil

[ ][Edit]

Con

)ne of the primary reasons not

to !an offshore drilling is o!

creation and o! preser"ation.

?n addition to the o!s that

could !e created #ith allo#ing

ne# leases for offshore oil rigs

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fields offshore drilling then should !e !anned so that o!s of those

#or&ing in these industries are protected from potential and

catastrophic/ spills.

•More than 5.+ million people in coastal counties of the %nited States

#or& in the tourism industry and in recreational and commercial fishing

and processing and in coastal counties of the Gulf of Mexico the

num!er of o!s in the tourism and fishing industries ***888/ exceed

that of the natural extraction and mining industry #hich includes oil and

gas drilling/ Q 6+5888 , !y fi"e times.

•?n regions of the %nited States that utiliCe offshore drilling the annual

"alue of tourism and fishing 3985 !illion/ is almost 5 times larger than

that of any oil and gas pumped from those areas.

•$he recent B( oil spill in the Gulf of Mexico #ill most li&ely lead to a 6+

percent loss in tourism and +8 percent loss in fishing re"enue through

#hich people #ill lose a!out 399 million o"erall including 3+88 million

in earnings/ and state and local go"ernments #ould lose almost 3*4

million in tax re"enue.

•Most li&ely the harm done to the economy #ill last !eyond this year as

in e"en the !est,case scenario the region #ill experience a loss of 36

!illion and 6@888 o!s. n the #orst,case scenario tourism loss #ill

mo"e to @8 percent and fishing losses to 8 percent and the o"erall

economic loss #ould mo"e past 3@.@ !illion #ith almost 5<888 o!s lost

and up to 36+8 million lost in state and local tax re"enues.

Another perspecti"e on effects on employment can !e ta&en in regards to

alternati"es to offshore drilling. 2ith a !an on offshore drilling #e posit a

more aggressi"e push #ill !e made to implement alternati"e energy

throughout the country leading to a gro#th in KgreenL o!s.

•$he ocean conser"ation group )ceana states that offshore drilling

actually threatens the creation of ne# o!s and that focus should !e

shifted to expanding upon rene#a!le energy opportunities as these

opportunities #ould go further in creating o!s. )ffshore drilling #ill ha"e

to engage in competition #ith the rene#a!le energy industry in the

future and this #ill only ser"e to ma&e all sources of energy more

there are a su!stantial num!er

of uns&illed o!s that are

currently associated #ith

offshore drilling. 'urrently

there are 6+8888 employees

on oil rigs in addition to the

9+988 proected employees

needed for expanded drilling in

Alas&a and 6+888 proected

employees needed in Firginia.

$his is a su!stantial num!er of

people employed on offshore oil

rigs in areas that ha"e !een

disproportionately affected !y

the decline of the

manufacturing industry and

988 recession. Mississippi and

lorida t#o of the states #ith

offshore oil rigs in the Gulf of

Mexico ha"e t#o of the highest

unemployment rates in the

country at <.*> and 66.<>

respecti"ely/. Employees on

offshore oil rigs earn an

estimated 35+888 per year on

a"erage #hich is directly

in"ested !ac& into the local

economy through income and

sales tax. Although the salaries

of offshore oil rig employees are

captured in the operating cost

of an oil rig there is also an

indirect economic !enefit to the

incomes that offshore oil rig

employees earn. $his is

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expensi"e to introduce to the mar&et.

•$hough mo"ing for#ard in the alternati"e energy sector re=uires maor

and long,term in"estments the fact that the %nited States should mo"e

in this direction spea&s for itself. $he 38 !illion set aside #ithin the

federal stimulus program to promote an economy !ased on Kgreen

energyL has !een effecti"e.

•or e"ery 36 million in"ested in clean energy technology !y the %nited

States including solar #ind smart grid proects and construction of

retrofits/ three times more o!s are created than if this money #as

in"ested in the oil and gas industry.

•Bet#een 9888 and 988 an estimated KgreenL construction proects

had created an estimated 9.5 million o!s in the %nited States including

proects to #eatheriCe !uildings reha!ilitate older !uildings to sa"e

energy and rene#a!le energy initiati"es. According to the go"ernment

consulting firm BooC Allen amilton !et#een 988< and 986@ KgreenL

!uilding proects proected to ta&e place #ill add 3++5 !illion to the

%nited States gross domestic product.

accounted for #ith a multiplier

effect of 6.5 !ringing the total

economic impact to the area of

348*698488 per year.

Eliminating this income and

sales tax re"enue #ith a !an on

offshore drilling in addition to

the re"enue generated from

leases for offshore oil rigs #ould

ha"e a significant negati"e

economic impact

This is a list of countries by proven reserves of  oil  based on The World Factbook  as of 1 January

2010.[1] According to CA definition!

"ro#ed reser#es are those $uantities of %etroleu& 'hich( by analysis of geological and engineering

data( can be esti&ated 'ith a high degree of confidence to be co&&ercially reco#erable fro& a gi#en

date for'ard( fro& kno'n reser#oirs and under current econo&ic conditions.

CountryReserves

(bbl)

Share of 

World %

—  European Union 5,453,000,000 0.39%

1  Saudi Arabia (more information)!4,!00,000,0

0019.00%

"anada (more information)1#5,00,000,0

001.5$%

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3 ran (more information)13#,!00,000,0

009.$$%

4  ra& (more information)115,000,000,0

00$.!%

5 'uait (more information)104,000,000,0

00#.4#%

!  ra*il (in+ludin pre-alt la/er)100,$00,000,0

00#.4%

# United Arab Emirate (more

information)

9#,$00,000,00

0#.0%

$  2ene*uela (more information)9#,##0,000,00

0#.0%

9  uia (more information)#4,00,000,00

05.33%

1

0 ib/a (more information)

4#,000,000,00

03.3$%

1

1 ieria (more information)

3#,500,000,00

0.!9%

1

 'a*a67tan

30,000,000,00

0.15%

1

3 8atar

5,410,000,00

01.$%

1

4 "7ina

0,350,000,00

01.4!%

1

5 United State (more information)

19,10,000,00

01.3#%

1

! Anola

13,500,000,00

00.9#%

1

# Aleria

13,40,000,00

00.9!%

1

$ e:i+o (more information)

1,40,000,00

00.$9%

1 A*erbai;an #,000,000,000 0.50%

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9

0 Sudan !,$00,000,000 0.49%

1  ora/ !,!$0,000,000 0.4$%

 E+uador !,54,000,000 0.4#%

3 ndia 5,$00,000,000 0.4%

4 <man 5,500,000,000 0.39%

5  2ietnam 4,#00,000,000 0.34%

! E/pt 4,300,000,000 0.31%

# ndoneia 4,050,000,000 0.9%

$ Autralia 3,31$,000,000 0.4%

9

  =emen 3,1!0,000,000 0.3%

3

0 United 'indom 3,0$4,000,000 0.%

3

1 ala/ia ,900,000,000 0.1%

3

 S/ria ,500,000,000 0.1$%

33

 Arentina ,3$!,000,000 0.1#%

3

4 >abon ,000,000,000 0.14%

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3

5 "olombia 1,900,000,000 0.14%

3

! "ono, epubli+ of t7e 1,!00,000,000 0.11%

3

# "7ad 1,500,000,000 0.11%

3

$ runei 1,100,000,000 0.0$%

3

9 E&uatorial >uinea 1,100,000,000 0.0$%

4

0 ?enmar6 1,0!0,000,000 0.0$%

4

1  @rinidad and @obao #$,300,000 0.05%

4

 omania !00,000,000 0.04%

4

3  @ur6menitan !00,000,000 0.04%

4

4 U*be6itan 594,000,000 0.04%

4

5  @imor-ete 553,$00,000 0.04%

4

! eru 4#0,$00,000 0.03%

4

# oliBia 4!5,000,000 0.03%

4

$ a6itan 43!,00,000 0.03%

4

9  @7ailand 430,000,000 0.03%

5

0  @uniia 45,000,000 0.03%

5  tal/ 43,#00,000 0.03%

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1

5

 U6raine 395,000,000 0.03%

5

3  >erman/ #!,000,000 0.0%

5

4  @ur6e/ !,00,000 0.0%

5

5 "ote dCBoire 50,000,000 0.0%

5

! "ameroon 00,000,000 0.01%

5

#  Albania 199,100,000 0.01%

5

$ elaru 19$,000,000 0.01%

5

9

 "ono, ?emo+rati+ epubli+ of

t7e1$0,000,000 0.01%

!

0 "uba (more information) 1#$,900,000 0.01%

!1

 apua e >uinea 1#0,000,000 0.01%

!

 7ilippine 1!$,000,000 0.01%

!

3 "7ile 150,000,000 0.01%

!

4 Spain 150,000,000 0.01%

!5

 a7rain 14,!00,000 0.01%

!

! Dran+e 101,00,000 0.01%

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!

# auritania 100,000,000 0.01%

!

$ et7erland 100,000,000 0.01%

!

9 oro++o 100,000,000 0.01%

#

0 oland 9!,3$0,000 0.01%

#

1 Autria $9,000,000 0.01%

#

 >uatemala $3,0#0,000 0.01%

#

3 Suriname #9,!00,000 0.01%

#

4 Serbia ##,500,000 0.01%

#

5 "roatia #3,350,000 0.01%

#

! e ealand !0,000,000 0.00%

#

# /anmar 50,000,000 0.00%

#

$  Fapan 44,10,000 0.00%

#

9 '/r/*tan 40,000,000 0.00%

$

0 >eoria 35,000,000 0.00%

$

1 anlade7 $,000,000 0.00%

$

 Gunar/ !,5#0,000 0.00%

$ ularia 15,000,000 0.00%

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3

$

4 Sout7 Afri+a 15,000,000 0.00%

$

5  "*e+7 epubli+ 15,000,000 0.00%

$

! >7ana (more information) 15,000,000 0.00%

$

# it7uania 1,000,000 0.00%

$

$  @a;i6itan 1,000,000 0.00%

$

9  >ree+e 10,000,000 0.00%

9

0 SloBa6ia 9,000,000 0.00%

9

1 enin $,000,000 0.00%

9

 eli*e !,#00,000 0.00%

93

  @aian ,$00,000 0.00%

9

4 rael 1,940,000 0.00%

9

5 arbado 1,#90,000 0.00%

9

!  Fordan 1,000,000 0.00%

9#

 Et7iopia 430,000 0.00%

- Total1,392,461,05

0,00010000%