...In this research paper, I will be talking about offshore oil drilling and how this will affect Florida. I will give you a little history about this subject and what lead up to the conflict between the people and the politicians. First, we will start out with a little history, we know that offshore oil drilling was only allowed in certain coastal areas. On March 30, 2010, the New Times reported that Obama decided to open offshore drilling to Atlantic, Gulf of Mexico and the Alaska coastline for oil and natural gas. The area that was proposed was a compromise between the oil corporations and national drilling activists. The only problem with this is many residents that this effected would be upset along with environmental groups. Plus, it will...
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...money into alternate fueling sources. Off shore drilling at this point is environmentally unsafe. Our environment is changing due to global warming, and off shore drilling makes this worse. I feel very strongly about greedy oil companies destroying the planet in pursuit of more oil at the cost of our endangered species and the health of the American people. Oil companies already hold 5,500 offshore leases that are not being used. I do not know why they need to occupy more space, when they can use what the government has allowed them to use. Now, I do agree changing to solar and wind powered fuel sources will require research and additional funding, however those fuel sources are more eco friendly and in the long run may leave the world in a better position. I must admit, sometimes I fall in to a mindset that is commonly known as stereotyping. As explained in this book “The Art of Thinking”, by Vincent Ryan Ruggiero, chapter 3, a stereotype is a fixed, unbending generalization, irrationally maintained. I have fallen in to this on many issues; I do not believe that my stance on off shore drilling is an issue of stereotyping. I have reassured my stance by reading and researching this stance. As stated in a USA Today article (Jervis, Welch, & Wolf, 7/14), “When oil is brought up from beneath the ocean floor, other things are, too. Chemicals and toxic substances such as mercury and lead can be discharged back into the ocean”. The oil and chemicals are harming sea mammals and the water...
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...Current ethical issues on Oil Spill Today, with the continual and rapidly growing need of energy demand by big nations like United States and China continuing to furnish their domestic consumptions of oil have led to increased prices of gasoline whereby alternative forms of energy production are sought. With this in mind, offshore drilling can be a viable option for satiating the need of oil and also to boost the economy of the nation. In this report, I am going to discuss how the current Deepwater Horizon rig explosion has led to disastrous oil spill into the Gulf of Mexico causing environmental problems and also discuss how the oil spill if resolved and with safe and secure drilling techniques, the economic impact of offshore drilling can outweigh the environmental issues. Concerning the Deepwater Horizon rig explosion on April 20, 2010, which escalated into a massive amount of oil spillage from the well reservoir as the oilrig sunk killing eleven crewmembers on board. The key players related to the rig explosion are British Petroleum (BP), Transocean, rig owner, and Halliburton. BP is one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. (“BP at a glance,” 2010) Transocean, the world’s largest offshore drilling contractor and the owner of Deepwater Horizon rig, provides the most versatile fleet of mobile offshore drilling units to help clients...
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...Offshore Drilling – To Drill or Not to Drill The Effects of Drilling on the Environment and Business Lydia M. Wityk Strayer University Abstract This paper will explore the business of oil companies drilling off the coast line of the United States. It will explore the benefits from the business of oil companies to the detrimental effects of the oil spills from the offshore drilling. Should we continue to drill for oil off the coast with the possibility of additional spillage into the oceans. We know that oil spills damage the environment, and the social and economic welfare of the residents in the area. At the same time the oil companies can positively affect the economy and the United State’s welfare. In comparing both sides of the argument I will look at the past and current oil companies to determine if they acted morally in their everyday business practice. At this post-BP disaster era, the United States is questioning whether we should continue to drill and expand our drilling. I will utilize the consequentialist theory to determine what would be the best next step for the U.S. to take. Using the current information gathered on BP’s business practice and the effects of the oil spill, I will weigh the ratio of good to bad to determine my opinion on whether to drill or not to drill. Off Shore Drilling – To Drill or Not to Drill The Effects of Drilling on the Environment and Business The United States has been offshore drilling for oil since...
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...The History of Offshore Oil and Gas in the United States In looking at the history of offshore drilling for oil and gas, it has been a long and grueling process that has revolutionized the industry in its own. Beginning in the 1890s, oil companies have drilled wells in the ocean, but from wooden piers connected to shore. It wasn’t until the 1930’s, that Texaco and Shell Oil deployed moveable barges that were not considered ocean worthy to drill in the South Louisiana marshes. After years of trial and error, in 1938 the first offshore well was constructed by a construction company known as Brown & Foot for two independent oil firms known as Pure Oil and Superior Oil. The well was built in a field known as Creole Field and was considered the 1st offshore drilling site ever constructed. With this drilling site in operation, business opportunities for independent contractors and large oil companies developed with large research development programs in charge of finding new geological environments. With the vast amount of land being unused under the water, oil filled land would revolutionize the future of oil production, and flourish in record breaking profits. It is predicted that the largest hydrocarbon reserves and production during the next several decades will likely come from offshore drilling in deep water beyond 3,000-foot depths. With the offshore drilling and production industry just beginning it was unclear of just how successful it would be. In fact, many...
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...A CRITICAL ANALYSIS OF THE BP OIL SPILL RESPONSE AND PREPAREDNESS PLAN FOR THE DEEP HORIZON – WHY DID IT FAIL? Toni Josina Elfrieda Beukes* May 2012† ABSTRACT: Based on events that unfolded in the U.S. in the weeks and subsequently months of the Macondo well blow-out, it is clear that neither industry nor government was equipped to deal with a spill the scale and complexity of the Deepwater Horizon disaster. As one of its key recommendations to President Obama for addressing the causes and consequences of the spill, the National Commission on the BP Deepwater Horizon Oil Spill in its final report, stated the need for “strengthening oil spill response, planning and capacity”. Industry best practice dictates that quickness and accuracy are key requirements for effective oil spill response and preparedness planning (OSRPP); yet it took nearly three months to seal the Macondo well. This paper is accordingly concerned with the reasons for the apparent failure of the BP oil spill response plan. This failure will be considered in light of current international environmental regulations on OSRPP and applicable United States legislation, whilst assessing the BP oil spill response plan’s compliance therewith. The study will also consider some theory in the development of OSRPP by looking specifically at risk assessment tools and applying key criteria to the BP oil spill response plan to determine its adequacy and appropriateness for its operations in the GOM. What...
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...Si Peng Professor Sellmer English 123 6 Aug. 2010 Offshore Drilling: A Bad Idea Crude oil is one of the three kinds of fossil fuel (coal, crude oil, and natural gas) that are widely used by humanity. It plays a very important role in our world, as it is one of our primary energy sources. According to the U.S. Energy Information Administration (EIA), the United States is the biggest oil consumption country in the world, which consumes 19.5 million barrels of oil per day (EIA, “Country Energy Profiles: Oil Consumption”). Crude oil can not only be found on the continent, but also in the ocean. The activity that people discover and extract oil from the ocean is called offshore drilling. Offshore drilling has a long history in the United States. The first offshore well was drilled in 1896, in California (“History of Offshore Oil” 163). Oil soon became the primary energy source of the United States by 1910, as the internal combustion engine, which requires gasoline to power, was invented (“History of Offshore Oil” 163). In the next few decades, offshore drilling industry in the U.S. was going up quickly (“History of Offshore Oil” 163-64). Along with the development of the industry, the government regulation came up. To pursue offshore drilling in the U.S. OCS (Outer Continental Shelf) lands, oil companies need to acquire the lease from the U.S. federal government (“History of Offshore Oil” 164). The Outer Continental Shelf Lands Act (OCSLA) passed in 1953 ensured federal government’s...
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...Offshore Drilling Does anything out weigh the importance of our planet’s health? You would be surprised by the number of people who look the other way when it comes to keeping the planet clean. Offshore drilling is just one of the major environmental issues that has existed for many years and still continues to be a problem. The topic of offshore drilling not only touches on environmental issues but also political, economic, and ethical issues. All of these tie into the huge debate over offshore drilling and its impacts on the environment. But when the human race depends on oil, how can we ignore the fact of drilling for oil off the coast of our land. Investing in greenhouse energy is just one of several ways to help keep the environment clean and continue to get the energy we need. America needs to realize that offshore drilling is a leading factor in pollution and we can’t keep collecting oil like this forever, we need to discontinue this process of drilling off shore and expand our possible options of renewable energy. So you might be asking yourself “how does offshore drilling affect our environment?” It all starts with finding the oil. The oil companies use a system like sonar that sends out waves, these “Seismic waves used to locate oil can harm sea mammals and disorient whales. ExxonMobil recently had to suspend exploration efforts near Madagascar after more than 100 whales beached themselves” (HowStuffWorks). Just the thought of going to your local beach to find...
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...sources to develop adequate energy. It is my position we should continue to drill wherever oil is available. There is a Congressional ban on drilling offshore in regions along the North Atlantic coast, most of the Pacific coast, parts of the Alaskan coast, and most of the eastern Gulf of Mexico (When a science fiction nightmare becomes a reality). The areas under the ban are estimated to hold over 18 billion barrels of oil but after recent estimates have increased the previous estimates of untapped oil in Gulf of Mexico from 9 billion to 45 billion barrels, there could be much more oil under the sea than previously thought. Environmentalists have argued against all types of drilling. They do not approve offshore drilling because of danger to marine life. They do not also approve onshore drilling because of the pollution risks involved to the extent of opposing oil pipelines. The recent oil spill in the Gulf has strengthened their argument further but they do not bring to the table adequate answers to American energy needs. Whereas the oil spill in the Gulf was a serious matter, it was just an accident and accidents happen all the time. The perception that oil pollution is a result of drilling is wrong. Equipment failure and human error are the causes. We do not stop flying just because there has been a plane crash somewhere. We identify the problems and fix them. The advantages of drilling far outweigh the disadvantages. We can still drill in a way that protects the world’s oceans...
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...Nathan Green December 2, 2010 Finance 573 Dr. John Settle Rick Watson Contents Executive Summary 4 Company Overview 5 Sale Thesis 6 Energy Industry Overview (Oil and Gas Focus) 7 The “Upstream” Oil and Gas Sub-Sector Overview (Offshore Focus) 8 Macro-Level Trends in the Oil & Gas Industry 11 Industry Attractiveness Using Porters Five Forces 13 Bargaining Power of Suppliers: Low 13 Bargaining Power of Customers: Medium 13 Threat of New Entrants: Low 13 Threat of Substitute Products: High 14 Government Action: Medium 14 Competitive Rivalry: Medium 14 Five Forces Summary 14 Ensco’s Operations & SWOT Analysis 15 Strengths & Weaknesses 15 Opportunities & Threats 16 Financial Performance 17 Revenue, Cost of Sales, Net Income, & Margins 17 Capital Expenditures 18 Return on Assets 18 Relative Valuations 19 Financial Forecast 21 Discounted Cash Flow Valuation 22 Conclusion and Recommendation 23 Table of Figures Figure 1) World-Wide Energy Consumption Growth since 1965. 7 Figure 2) Example Photograph and Diagram of "Jackup" Oil Rigs 9 Figure 3) Example Photograph and Diagram of "Semisubmersible" Oil Rigs 9 Figure 4) Comparison of the Average Size of 2009 Oil Field Discoveries: Offshore vs. Onshore 10 Figure 5) Historical WTI Oil Prices 11 Figure 6) Historical and Projected Jackup Rig Demand 12 Figure 7) EIA Projected Global Demand for Energy through 2035. 12 Figure 8) Jackup Utilization Comparison...
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...that will replace oil and coal. These sources include solar power, windmills, natural gas, and nuclear energy. These alternatives alone will not help save our planet. However, the potential behind these alternatives is exciting and hopeful. If there is a chance to save our planted from more damage, then the government needs to act now. The United States offshore drilling debate is still ongoing, and the argument is that the United States benefits because it becomes less dependent on imported oil. There is also the argument that offshore drilling would affect military training and weapon testing. However, my argument is that offshore drilling poses a much greater threat to all civilization. When waste is spilled into the ocean it spreads throughout the water harming marine life and their habitat. It can affect their hearing, changes in their behavior and can even cause physical injuring or death. Much of the marine life is threatened by extinction. The oil spill in the Gulf of Mexico has threatens our planet with environmental damage. Oil spills like this fill the air with toxins that raise concern for many health problems. When oil is recovered from the ocean floor chemicals and toxins come to the surface, which are the released into the air. This is a growing concern and should not be dismissed. The Center for Biological Diversity (2010) says that six months after the explosion of the Deepwater Horizon rig in the Gulf of Mexico, spilled oil still fouls beaches...
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...sources of crude oil and natural gas. In 1887, H.L. Williams decided to drill wells offshore and his first well went about three hundred feet into the Pacific. As expected, the extraction was abundant and extremely productive. During this time, the combustion engine was also being created which increased America’s demands for gasoline. The first well drilled from a fixed platform offshore was not created until 1947 by the Kerr-McGee Corporation and also marked the beginning of the modern offshore drilling industry. As a result, oil production was known as the second largest revenue generator for the United States. Creating offshore oil platforms entails more than three billion dollars. For some companies this could be a great investment, as for others it could signify a great loss. On March 23, 1989, Exxon Valdez had its first most tragic oil spill in U.S. history. Irresponsibility and carelessness led to the spilling of approximately 10.8 million gallons of oil into Prince William Sound affecting fisheries, the livelihood of citizens in Alaska, wildlife, and those who found Prince William Sound a sacred and pure place was now degraded. On April 20, 2010, British Petroleum (BP) reported a leakage of five thousand barrels of crude oil per day into the Gulf of Mexico. It was caused by methane gas from the drill rushing out, igniting and then exploding causing eleven workers’ lives and the damage of a well. The rupture of the well has caused non-stop leakage of oil into the Gulf...
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...Introduction Oil is an essential part of our everyday living. Historically, the oil and natural gas industry have accounted for approximately 10 percent to 25 percent of the state’s GSP, a trend that roughly tracks the price of oil. drilling rig bores a hole into the earth through which steel pipes are inserted. Pipes or casings like cement would then be put in between for strength as well as for separating different pressure zones- if they exist. The well is then drilled further, and more casings are added. At times, 2-3 layers of casings would be built depending on the geological composition of the zone. The rotator table then passes the drill string onto the hole. The drill string rotating by 'top drive' or 'power swivel' mechanism extends the drill bit. This extension is done with the help of the derrick (the structure holding the drill string). The drill bit then cuts the rock into pieces. Drilling fluid, also called mud-mixture of fluids, chemicals, abrasives and solids - is then pumped down the drill string. This fluid clears the cut rock bits onto the surface. Compressed air is substituted for the fluid, at times. In turbo-drilling, a turbine is placed in the drill string. Mud flows through this turbine causing the drill bit to rotate. This hydrocarbon-rich mixture of crude oil and gases runs our factories, our cars, heats some homes and has provided Americans with an unprecedented standard of living since its discovery in America in 1859. Petroleum is an extremely...
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...Paper Drilling off Shore in the U.S. Introduction There is a lot of conflict today about the United States drilling for oil off shore. Oil is a huge commodity of the entire world and is hugely demanded. However, off shore drilling is hazardous to both the economy and the environment and could potentially get worse. Oil spills are a largely known negative externality that is related with offshore development. There will always be pros and cons about drilling for oil. The big question is: should we or should we not drill off shore? Literature Review One reason we should not drill for oil in the United States is because it is dangerous and could be disastrous to the environment. The recent BP spill in 2010 killed 11 workers and caused months of leakage into the ocean. Per Katherine Goldstein “This oil spill has obtained the dubious distinction of being the worst oil spill in US history.” This spill was caused by an explosion while drilling off shore in the Gulf of Mexico. This caused leaking of about 5,000 barrels of oil a day. To try to stop the leaking, several attempts were made which included controlled burning and plugging the leak, both unsuccessful. This has a huge impact on our ecosystems even though it can take months or possibly years to surface. Louisiana was most impacted by this spill. They are the closest to the leaking well and over 100 miles of the coast had been polluted. Per David Adam “State officials have reported sheets of oil soiling wetlands...
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...Cadigan, Noble Drilling Services Inc. Noble Corporation Noble Corporation’s International Expansion Introduction As Jim Day, the CEO of Noble Corporation for 12 years, looked at the reports before him, he made a list of the many uncertainties inherent in the potential acquisition of Neddrill—the oil and gas drilling services subsidiary of Royal Nedlloyd N.V., a Dutch shipping company. First was the quality of the drilling assets. As far as his people could tell, the rigs would all require significant investment to bring them up to Noble standards. But the exact amount was unknown. Second was the industry’s inability to accurately forecast future dayrates (daily revenue for drilling on behalf of clients) for the rigs. Many insiders expected rates to rise but they had been wrong before with major consequences. Acquiring costly drilling assets could prove very risky if the dayrates went down instead. Third was the complexity introduced by buying a large international firm whose employees were not overly enthusiastic about joining a U.S. based driller. An inability to efficiently integrate the Neddrill assets and people into Noble would reduce the value of the acquisition as well as put Noble’s reputation at risk. A number of factors, however, argued for continued growth through acquisition and by entering deepwater markets. Most analysts in the industry believed that expanding operations outside the U.S. was imperative. Over the past century, extensive land-based oil exploration...
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