Oil From The Gulf Of Mexico
It’s a unhappy story. It is a shocking story.
You’ll find out all about it at OpenTheGulf.org, a website sponsored by the trade-backed Shopper Power Alliance. The issue, according to the positioning: the Obama administration’s “Gulf Moratorium and Permit Freeze” are killing jobs. The answer as per the site: send a message to U.S. authorities officials to “Open the Gulf.”
Gulf Stories as Centerpiece
The net campaign’s centerpiece are clips of actual individuals — Lori, David, Mark, and others — telling their tales of financial break to a backdrop of empty rigs and warehouses underscored by somber, plaintive music. (These tales are also being featured in Tv advertisements.) Every has a compelling and sad story to inform. Their lives are in financial free fall — they’re out of work, can’t make ends meet, gasoline is too costly, all the jobs have gone overseas. And why is all this occurring The administration’s policy on oil from the Gulf of Mexico.
Mark claims that if “the [Gulf of Mexico] moratorium was opened up … it would be higher for everyone.” Lori, the proprietor of an organization that runs rigs in the gulf, laments the loss of business and has a solution: “Let’s repair it … Let’s give you a solution that everybody can live with and let’s get again to work.” David’s a suffering truck driver however he’s nonetheless patriotic: “Made in America says it all. … Just allow us to do it. Free it up.”
Citing estimates from a July report [pdf] by IHS International Institute and IHS CERA, OpenTheGulf.org claims that more than “230,000 American jobs and practically $12 billion in tax revenues could possibly be generated in 2012 if exercise in the Gulf resumed to regular ranges.” That IHS report, by the way in which, was funded by the Gulf Economic Survival Staff, “founded in June 2010 to push for a swift finish to the federal moratorium on offshore drilling.” It was also roundly criticized by Michael R. Bromwich, the director of
the Bureau of Ocean Vitality Administration, Regulation and Enforcement, as
being “basically flawed.”
And then there’s the decision to motion. Clicking on “Ship a Message to Washington” takes you to a ready letter able to ship to the president and Congress. It says, among other issues, that “stalled growth of our vital power sources threatens another 380,000 jobs nationally and has driven up gasoline and diesel costs as the Gulf of Mexico moratorium and permit freeze drive shoppers to rely increasingly on overseas oil.” And it ends with a easy demand: “Open the Gulf.”
Wow, a powerful message. However there are some issues: Facts.
The Gulf Offline
The patron Vitality Alliance — a bunch with a private Web registration through Domains by Proxy, Inc. which says one thing in and of itself — describes the Gulf of Mexico as being “primarily offline.” Hardly. Oil has been flowing from the gulf with out interruption through the Deepwater Horizon disaster within the spring and summer time of 2010 all the best way via to now. And the charges of production have been fairly close to historical highs.
And what precisely do the IHS folks mean by “exercise within the gulf” resuming “to normal ranges” If you happen to select the peak, in mid-2010, then, sure, present activity is a bit lower. However why should that be designated as regular Why not 2006, 2007 or 2009 In those circumstances, current activity would be above regular. (2008 was a hurricane 12 months with major shut-ins.)
In late Might 2010 following the Deepwater Horizon accident, the president placed a six-month moratorium on new drilling — not on all oil operations, just on new drilling. So the suspension affected a total of about 33 rigs, 12 of which continued to function. (For extra, see right here and right here.) The rationale for this short-term halt to new drilling was so that officials might determine what went incorrect and how to keep away from such an event sooner or later. (Incidentally, the initial moratorium was overturned by a decide; a revised moratorium kicked in in July 2010.)
In October 2010 — a month and a half earlier than projected — the moratorium was lifted and new security requirements for drilling and spill containment have been established, together with the requirement that new operations would need to demonstrate upfront that they have the ability and tools to contain “a subsea blowout,” like what occurred when the Macondo well reworked into a uncontainable deepwater oil gusher. Briefly, crude oil specific gravity there is no moratorium.
Ok, you may say, the moratorium has been lifted, but the administration has nonetheless put a lid on gulf oil by refusing to grant new permits — the so-referred to as “permit freeze.” Really
The brand new requirements for crude oil specific gravity drilling and spill containment definitely did sluggish things down for a while as a result of they meant that operators would wish to procure further gear before submitting new permit purposes. However in February the primary permit for deepwater drilling within the gulf was authorized. Since then, of the brand new permit purposes for deepwater drilling that require subsea containment:
113 have been accepted,
17 are pending, and
22 have been returned to the operator for more data.
As for deepwater drilling that does not require subsea containment:
Forty five have been authorized,
1 remains to be pending, and
1 has been returned to the operator.
And shallow water permits between April 2010 and March 2011 have proceeded at a rate of seven monthly compared to eight per month in the 12 months leading up to the Deepwater Horizon disaster.
Backside Line: The Gulf of Mexico Is Open for Drilling Business
Did the Deepwater Horizon disaster trigger of us to be laid off Did it lead to economic hardship After all. It was a disaster. Nearly 5 million barrels of crude gushed into the Gulf of Mexico — the largest marine oil-spill catastrophe on record. Had been new permits placed on crude oil specific gravity hold till steps could possibly be taken to keep away from comparable disasters in the future Yep.
However, with a allowing course of now in place, drilling
activity in the gulf’s deepwaters has been steadily growing.
“Exercise Begins to pick Up Publish-Macondo” – Penn Energy
“Shell Wins New Deep-water Permit, Puts Last of Idled Rigs Again to Work” – FuelFix.com
“Chevron Official Talks About Returning to the Gulf” – Associated Press
“Resumed Gulf Drilling Pays Off for Noble Energy” – Houston Chronicle
“Oil Demand Possible to extend; Supply Much less Certain” – PRNewswire
The Anti-Oil President Have a look at the Numbers.
It is often claimed that President Obama is in opposition to massive oil, desires to
shut down all oil extraction and exploration in the United States.
Really You assume so
With oil manufacturing up, President Obama can hardly be called the anti-oil president. (Source: “Quick-Term Power Outlook,” Might 2011, U.S. Vitality Information Administration)
Effectively, listed here are the info: In the course of the Bush presidency from 2001 to 2008, U.S. crude oil manufacturing declined from about 2.12 billion barrels to about 1.Eighty one billion barrels. In the submit-Bush years between 2009 and 2010, however, U.S. crude petroleum manufacturing elevated: 1.96 billion and a couple of.00 billion, respectively. And the EIA projects the manufacturing rates to proceed to grow in 2011 and 2012.
Is rising crude oil manufacturing a great thing Like so much else, it in all probability depends on your politics. But one thing I’m fairly positive is just not good: misinformation. Like I said: It’s a unhappy story; it’s a shocking story.