• 3 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 9 hours Conflicting News Spurs Doubt On Aramco IPO
  • 10 hours Exxon Starts Production At New Refinery In Texas
  • 12 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 1 day Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 1 day Oil Gains Spur Growth In Canada’s Oil Cities
  • 1 day China To Take 5% Of Rosneft’s Output In New Deal
  • 1 day UAE Oil Giant Seeks Partnership For Possible IPO
  • 1 day Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 1 day VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 1 day Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
Alt Text

This Key Data Points At Strong U.S. Oil Demand

U.S. Gasoline prices haven’t risen…

Alt Text

Oil Markets Brace For Another Hurricane

Oil prices drew back this…

When Will Offshore Drilling Make a Comeback

Offshore drilling typically refers to the discovery and development of oil and gas resources which lie underwater. Most commonly, the term is used to describe oil extraction off the coasts of continents, though the term can also apply to drilling in lakes and inland seas. Offshore drilling presents environmental challenges, especially in the Arctic or close to the shore. Controversies include the ongoing US offshore drilling debate.

The off shore moratorium in the US (as a result of the BP spill) ended in October 2010. The Obama administration has decided to allow 13 companies to resume deepwater drilling without additional environmental scrutiny. The decision comes after the administration said it would require strict reviews for new drilling in the Gulf. Others, such as the arctic Shell project, are still blocked by related concerns. The Department of the Interior apparently gave those companies the go-ahead because they were in the middle of previously approved projects when the Gulf spill occurred.

Around 1891, the first submerged oil wells were drilled from platforms built on piles in the fresh waters of the Grand Lake St. Marys in Ohio. Around 1896, the first submerged oil wells in salt water were drilled in the portion of the Summerland field extending under the Santa Barbara Channel in California. The wells were drilled from piers extending from land out into the channel.

There are risks in off shore drilling. No one can deny that. However, the drilling supplies numerous local jobs and adds to the available natural gas and oil supplies. Until there is no future need due to renewable sources being developed the world will need these products.

Assessing only the impact of halting deep water drilling, an internal July 2010 memo from Michael Bromwich, director of the bureau of Ocean Energy, to Salazar estimated that the six month moratorium impact would result in over 23,000 jobs lost.

The 13 companies allowed to resume drilling are: ATP Oil & Gas; BHP Billiton Petroleum; Chevron USA; Cobalt International Energy; ENI U.S. Operating Co. Inc.; Hess Corp.; Kerr-McGee Oil & Gas Corp.; Marathon Oil Co.; Murphy Exploration & Production-USA; Noble Energy Inc.; Shell Offshore; Statoil USA; and Walter Oil & Gas Corp.

Not all drilling has been resumed. Sometimes there is vehement local opposition even if the drilling permit has been approved. Alaska Native and conservation groups have succeeded in challenging clean air permits granted to Shell Oil to drill exploration wells in the Beaufort and Chukchi seas.

Numerous groups alleged that Shell's permits granted by the Environmental Protection Agency would allow the company to emit tons of pollutants into the Arctic environment from a drill ship and support vessels.

The federal Environmental Appeals Board reviewed the permits and last week found that the EPA's analysis of the impact of nitrogen dioxide emissions from the ships on Alaska Native communities was too limited and would have to be redone.

By. Andy Soos




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News