Offshore drilling


Published on

Published in: Business, Career
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Offshore drilling

  1. 1. Offshore Drilling
  2. 2. Introduction• Offshore drilling is searching for petroleum and gas below water surface, mainly in seas and oceans.• It started in 1891 in Grand lake st. Marys, Ohio.• Since then, the number of offshore wells increased dramatically in the US, until the number of wells in the Gulf of Mexico ONLY reached an increasable 3858 wells.• Drilling in the USA takes place in many places, which are Alaska, California, Gulf of Mexico (Texas, Louisiana, Alabama, and Mississippi), And the great lakes at Michigan*.
  3. 3. Benefits• Offshore drilling is the US is accounted for producing about 27% of the oil and 14% of the gas in the entire nation.• In 2007, offshore wells produced 492,000,000 barrels of oil, however, by 2013 it is expected that the gulf of Mexico ALONE will produce 686,000,000 barrels.• Petroleum is one of the industries that needs high employment rates, so in addition to the oil price, investments will offer a lot of jobs to American people.
  4. 4. Costs• Petroleum is a costly industry in the first place.• Offshore drilling is more costly due to various reasons(?). Shallow water drilling costs 1 ~15 M$, it can reach* 30M$ in medium depths and even 100M$ in high depths.• The deepest well in the world is recorded by 3 B$ until it started producing. “Pardido, Texas”
  5. 5. US Federal-State Regulations• Every country in the world own the waters until 22 Km from the shores, and it can mine in those waters freely.• US federal government in the beginning was the supervisor of all the offshore wells in the USA.• In 1953, the congress passed a law called “The Submerged Land Act” that gave the state the ownership of wells till 6 Km from the shore (Except for Florida and Texas,17 Km), and another law called “The outer Continental Shelf Act” gave the Federal government the owner ship of deeper wells.
  6. 6. Restrictions on Offshore Drilling• In jan,28th 1969 a blowout happened off coast of California, leading to prohibit farther drilling in California and Florida as well, and the prohibit continues…*• In 1972, A bill passed to ban offshore drilling to protect marine life, over the time the congress adding more paces to the ban until it covered the west, east coast, and eastern gulf of Mexico.• In 1990, Bush Sr. issued an executive order to ban federal waters from drilling at Texas, Louisiana, Mississippi, Alabama, and parts of Alaska, Clinton extended it till 2012, yet Bush Jr. rescinded it.• In 2002, a bill banned drilling in the great lake, and in 2005 t became permanent.• Until 2022, large parts of the gulf of Mexico is off-limits.
  7. 7. Restrictions on Offshore Drilling
  8. 8. Debates in Offshore Drilling• Energy Independence Argument• Fuel Price Argument• Military Training• Oil Spills Argument• Endangered Species• Alternative resources• Relations With Cuba
  9. 9. Brazil Offshore Drilling• In 2011, Obama made his first visit to Latin America by visiting Brazil.• In a speech addressing the President Dilma Roussef and the Brazilian Nation, Obama stated that they will help Brazil in drilling, and when they extract Oil US will be their best costumer!!
  10. 10. Brazil Offshore Drilling• In addition to that, Barack Obama gave an order to the Import-Export bank to send Brazil 2 Billions U$ for their drilling.• This caused a lot of debates, some people say that it is better than the middle east, while the others say that USA is still an energy slave….SO what do you think?