Free Essay on Offshore Drilling: Balancing Economic Demands with Environmental Consequences

Introduction

A large part of the controversy concerning offshore drilling stems from its environmental and economic impacts considering the demand for oil has increased. Oil has become a fundamental part of humanity, with numerous industries and human necessities relying on the various products attained from natural resources. However, unlike wind, solar, and geothermal, oil is a finite resource that is being depleted at an alarming rate among other sources of energy. The history of humanity and crude oil dates back to as early as 347AD when the Chinese drilled oil wells 800 feet deep (Pascoe, and Innes 351). However, massive interest in crude oil began in the 18th and 19th centuries when the oil demand increased. The invention of the automobile and the airplane made the demand significantly increase as it was used to develop the fuels needed to operate them. Nevertheless, after over 2,000 years of oil usage by humanity, scientists have come to the clear understanding that onshore wells are almost depleted (Pascoe, and Innes 351). The next alternative has been to search for similar deposits offshore. However, it comes at the unnecessary risk of economic, environmental, and ecological damages.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

As previously mentioned, humanity’s technology and livelihood are highly dependent on crude oil. The demand for fossil fuel has made industry giants such as Schlumberger, Halliburton, Baker Hughes, and Petrofac, among others endeavor into offshore drilling (Pallardy). According to most economists, the market demand for the product motivated drilling companies to overlook the potential risks of offshore drilling. The companies spend billions of dollars in geological research, development of drilling equipment, and satisfying the market. The history of offshore drilling is short as the first offshore well was drilled in 1897, less than four decades after the first onshore oil well was bored (Horton). The first offshore oil well was drilled by H.L. Williams in the Santa Barbara Channel, California, off a wooden pier. By the early 20th century, offshore drilling began exploring potential sites further offshore.

Offshore Drilling Controversies

With increased technological advances and geological information, the search for oil further extended into the ocean. The searches were productive as the offshore wells demonstrated a higher potential for more crude oil than onshore wells. However, the process had numerous challenges. It required numerous resources such as financial, geological expertise, and equipment to access potential offshore sites. With the first documented offshore accident taking place in 1969, it was evident that the means of attaining crude oil was dangerous (Cordes et al. 360). Due to the blowout, of the accident was due to the uncontrolled release of crude oil and natural gas under pressure, resulting in an oil slick that covered approximately 800 square miles (Cordes et al. 361). The accident was due to equipment failure; coupled with the platform’s remote location, the blowout lasted 11 days, spilling over 80,000 barrels of oil (Cordes et al. 360). The accident resulted in the blanketing of 30 miles of southern California beaches and thousands of sea birds soaked in oil. Such incidents mandated the industry to employ numerous safety and environmental initiatives to offer solutions that would promote safety and efficient offshore drilling.

Though a large portion of the controversy focuses on offshore drilling's environmental aspect, others stem from the potential economic impacts it may have on both the U.S. and other international economies. Supporters of offshore drilling argue that increasing domestic production is essential for the country to reduce its fuel prices (Horton). The potential advantage would be limited reliance on international oil and reduction of environmental impacts. However, the argument is countered by detractors who use scientific data to argue that historical data identifies that fuel prices have barely changed as offshore drilling has increased (EIA). Additionally, increased activities have only destroyed oceanic ecosystems and potentially affected other industries, such as fisheries.

The notions supported by critics of offshore drilling have faced numerous opposition from politicians and oil company executives. The result was the implementation of policies and regulations that supported the rapid development of offshore drilling technology. However, the EIA report's notions of economic independence were counteracted (U.S. Energy Information Administration). The federal body identified that the impact of offshore crude oil on the national economy was limited. It would take offshore production up to the year 2030 to have a significant impact on fuel prices (EIA). Additionally, as of 2019, the federal department stated that offshore drilling accounted for only 15% of crude oil and less than 3% of natural gas used by the U.S. (EIA).

Impact of Offshore Drilling

The adverse economic, environmental, and ecological effects of offshore drilling are numerous, and they were made prominent with the 2010 Deepwater Horizon explosion. The offshore drilling platform was operated by Transocean and leased by B.P. (British Petroleum Company Limited). Similar to the 1969 accident, the BOP (blowout preventer) failed, resulting in the violent spill of approximately 25,000 barrels of oil per day (Pallardy). The well was capped 87 days later, after approximately 200 million barrels of oil were spilled, resulting in the country's most significant environmental disaster (Pallardy). The accident also had economic effects as a Canadian study in the Journal of Fisheries and Aquatic Sciences identified that after seven years, the oil spill impacted the various industries supported by the Gulf of Mexico. The study estimated that over $8 billion in the form of revenue, profits, and wages were lost and over 20,000 jobs (Pascoe, and Innes 357).

The environmental impact is not limited to the oceanic effects, as offshore drilling platforms must transport the product to land. In the Gulf of Mexico, it resulted in building a series of canals across the wetlands of Louisiana (Pascoe, and Innes 362). The result was severe soil erosion and the destruction of marshlands. It is noteworthy that marshlands are natural storm buffers preventing an influx of stormwater on land. However, due to their destruction, it is assumed to have contributed to Hurricane Katrina's destructive effects (Pascoe, and Innes 363). The main issue with offshore drilling is the potential for catastrophic environmental damage in an oil spill. The notion is further supported by the Department of Interior, which conducted an assessment and identified that oil spills have a 75% probability of happening ( NASEM & Committee on U.S. Offshore Oil and Gas Industry Safety Culture). Such statistics negate the need for offshore drilling. Finally, when oil deposits are identified on the ocean floor, the drilling process also releases other toxic chemicals such as lead, arsenic, and mercury into the ocean.

Conclusion

The assessment of scientific and statistical data demonstrates that offshore drilling is potentially an environmental and economic disaster. The events of the 1969 Santa Barbara and 2010 Deepwater Horizon oil spills exhibit the devastating effects of offshore drilling. The spills had both economic and environmental effects, some of which are experienced to date. Numerous other industries, inclusive of tourism, were affected by accident. Lastly, as argued by the government, offshore drilling has no significant impact on the overall economy and fuel prices; thus, offshore drilling is not necessary.

Works Cited

Cordes, Erik E. et al. "Environmental Impacts of The Deep-Water Oil and Gas Industry: A Review to Guide Management Strategies". Frontiers in Environmental Science, vol 4, 2016, pp. 350-370. Frontiers Media SA, doi:10.3389/fenvs.2016.00058. Accessed 10 Dec 2020.

EIA. "Offshore Oil and Gas". Eia.Gov, 2020, https://www.eia.gov/energyexplained/oil-and-petroleum-products/offshore-oil-and-gas.php.

Horton, Jennifer. "Why Is Offshore Drilling So Controversial?". Howstuffworks, 2020, https://science.howstuffworks.com/environmental/energy/offshore-drilling-controversy.htm.

Johnston, Jill E. et al. "Impact of Upstream Oil Extraction and Environmental Public Health: A Review of The Evidence". Science of The Total Environment, vol 657, 2019, pp. 187-199. Elsevier BV, doi:10.1016/j.scitotenv.2018.11.483. Accessed 10 Dec 2020.

National Academies of Sciences, Engineering, and Medicine (U.S.), and Committee on U.S. Offshore Oil and Gas Industry Safety Culture. Strengthening the Safety Culture of The Offshore Oil and Gas Industry. Transportation Research Board, 2016.

Pallardy, Richard. "Deepwater Horizon Oil Spill". Britannica, 2020, https://www.britannica.com/event/Deepwater-Horizon-oil-spill.

Pascoe, Sean, and James Pembroke Innes. "Economic Impacts of The Development of An Offshore Oil and Gas Industry on Fishing Industries: A Review of Experiences and Assessment Methods". Reviews in Fisheries Science & Aquaculture, vol 26, no. 3, 2018, pp. 350-370. Informa UK Limited, doi:10.1080/23308249.2018.1436521. Accessed 10 Dec 2020.