Tag Archives: exploration

Energy

New Opportunities for U.S. Oil?

In a surprising Monday move, the U.S. government approved Royal Dutch Shell PLC’s plans to drill in the Arctic Ocean this summer. The company has been pursuing drilling in the Arctic since 2007 and was set back by bad weather and mechanical failures in 2012. While the new drilling project will face tight restrictions, Royal Dutch Shell will be the first energy company to drill in the U.S. portion of the Arctic Ocean.

Opening up the Arctic Ocean is a big step for the oil and gas industry, but it still leaves 87 percent of the Outer Continental Shelf off-limits to the industry. While it’s a good sign of progress, this “big step” isn’t enough for some members of Congress. Three bills were introduced to the Senate on Tuesday that aim to open up parts of the Atlantic Ocean, Gulf of Mexico and the Arctic to offshore drilling.

With the Interior Department considering drilling in the Atlantic for the first time in decades and Alaskan legislators calling for more ― not less ― oil and gas activity in the area, now is a great time to push the Obama administration to reconsider its restrictive drilling regulations and proposals.

Energy, Land Issues

Offshore Access Critical to U.S. Energy Security

The Department of the Interior granted conditional approval to a plan by Shell Gulf of Mexico to begin exploratory drilling in the Chukchi Sea in the Arctic Ocean. Federally owned offshore oil and natural gas reserves of the United States are estimated to hold over 50 billion barrels of crude oil 200 trillion cubic feet of natural gas. However, close to 87 percent of federal offshore acreage is off limits to energy exploration and development. Without energy exploration to give a more accurate estimation of energy reserves, the closed off area could hold far more oil and natural gas reserves.

The Bureau of Ocean Energy Management’s offshore oil and natural gas leasing plan for 2017-2022 excludes promising areas in the Atlantic, Pacific, and Arctic and in the Gulf of Mexico.

Expanding offshore access would:

  • Create nearly 840,000 new American jobs.
  • Increase oil production by 3.5 million barrels per day.
  • Generate $200 billion cumulative revenue for the U.S. government.
  • Add $450 billion in private sector spending.
  • Add $70 billion per year to the U.S. economy.

The United States is now producing the most oil in the world and can continue to do so if more pro-energy policies, such as opening all federally owned offshore areas, are adopted by the federal government.