About offshore drilling

Oil as a Crucial Component of the Global Economy

Oil is a crucial component of the global economy, and people depend heavily on it. This reliance makes it impossible for everyone, even the government, to prohibit offshore drilling (O’Malley). Even if offshore drilling has some negative environmental consequences, it will help address the US energy crisis by lowering the cost of oil importation and substitute goods, as well as improving the US and global economies in general.

The Potential of Offshore Drilling in Alleviating Oil Shortage

Offshore drilling has the potential to alleviate the ongoing oil shortage in the United States. According to Bailey in “Offshore Drilling Remains a Risk Worth Taking,” the nation is dependent on imported oil, which is insufficient. The insufficient imported oil does not serve the needs of all Americans adequately. Most of the energy that the United States use is imported as the well in the country cannot satisfy the nation’s needs. The United States estimated offshore oil capacity is 62 million barrels (Bailey). This will be crucial in averting the oil crisis in the country. The United States uses 7 billion barrels of oil a year indicating that if the offshore oil is exploited it could serve the country oil demand for the next decade only. Furthermore, this will go a long way in reducing the cost of the oil product, which is currently high (Lynn and O’Malley). Notably, offshore drilling has been approved because of the advantages it offers to the world’s economy by reducing the world oil prices.

The United States’ Growing Oil Demand and Affordability

The US is the world’s largest spender of oil products and the second largest importer of oil products. Primarily, the country has been experiencing a growing oil demand. As a result, the prices have been increasing over the past few years. What most Americans do not understand is that the nation has enough oil to power the United States for the next 250 years. Chiefly, it is estimated that the nation sits on 1.4 trillion barrels of oil, which could go a long way averting the energy crisis experienced in the country (Davenport). Similarly, the nation has a growing middle class meaning the use of personal care is on the rise compared to the use of public means of transport.

Reducing Government Expenditure through Offshore Drilling

The US government spends a lot of money on oil transportation annually. Additionally, the country imports by-products of oil. These by oil by-products are equally expensive. The state uses seven billion barrels of oil annually (Bailey). The range of fuel estimates from offshore drilling is expected to be 62 million barrels. The amount of offshore drilling could reduce on the total oil imported. Reduced importation translates to a reduction in the government expenditure in importation in the long run. Offshore drilling is expected to produce 62 million oil barrels annually (Freeman). By producing oil, the country can further produce the oil by-products which it needs. The oil by-products include petroleum, jet fuel, kerosene, tar, motor oil, Sulphur, gasoline and diesel fuel. The country will thus have enough oil products for use in the country. O’Malley in the article “Don’t Drill Along the East Coast,” claims that drilling ha more adverse effects than positive ones.

Reducing the Need for Oil Product Importation

However, the oil by-products manufactured will serve the country for a whole century. Everyone in the country will have access to these oil by-products since they will be in plenty in the country (Davenport). As such, the importation on oil by-products will be reduced considerably. The US government spends a lot of money in the transportation of oil and its production from the source country. Most of the oil is transported by ships and cargo planes. Transporting seven billion of oil spends a lot of time and resources (Bailey). Transportation vessels sometimes experience voyage difficulties. The travel accidents lead to oil spillage into the water bodies. At times, the ships are attacked by pirates who smuggle the products. Thus, offshore drilling will reduce the loss from instances of accidents experienced during oil transportation. Oil produced from within the nation will be more secure against smuggling and accidents. Therefore, the government will end up saving more oil products.

Offshore Drilling as a Revenue Source for the Government

The offshore drilling will provide the government with an asset. The oil will give revenue to the state when it is sold to the citizens. Additionally, excess oil can be exported to foreign nations. Selling locally and exporting will increase revenue pool for the government. Conversely, increased revenue will facilitate the government in meeting its financial needs. Most of the environmentalists argue on a probability basis against the drilling or rather production of oil in the United States (Freeman). For instance, Davenport in his article “Obama Expected to Ban Offshore Drilling in Some Federal Waters,” argue that conservationists overlook the measures that have been put in place to deter oil drilling accidents and their adverse effects. Davenport however also looks at the positive part by explaining that increased revenue will improve the US economy (Davenport). Americans spend a lot of money in the purchase of imported oil. The imported oil has high taxes imposed on it by the government. The taxes are meant to compensate for the import duty imposed on the state, hence; the tax burden is passed on to the local citizens.

Benefits of Offshore Drilling for the US Economy

Davenport in “Obama Expected to Ban Offshore Drilling in Some Federal Waters” article argues that offshore drilling in US grounds will thus reduce the oil prices; hence more benefits for the American people as well as the government. Reduced oil prices mean that people can save more money. Increased savings improves investment, which leads to economic growth and increased GDP (Freeman). Therefore, the US economy will eventually recover. The world has been experiencing oil price fluctuations for quite some time now. The oil price volatility is caused by global economic instabilities as indicated by Davenport. Moreover, economic instability in oil source countries affects the US even when their market is a non-factor. Thus, when oil is drilled in the US, the oil price fluctuations will not affect the country. Everyone will have access to the oil products normally. Businesses that use oil products directly or indirectly will run smoothly (Davenport). When companies are run smoothly, it translates to economic growth in the country and price stability.

Balancing Environmental Concerns and Energy Crisis

Even though offshore drilling has some detrimental effects on the environment, the drilling can help solve the energy crisis in the United States. It will help to reduce the cost of oil importation and its substituent products as well as improve the US and world’s economy in general. Thus, the environmental regulations should be loosened a bit to allow for the growth of the country and independence in the oil sector, which takes up a lot of government and citizens’ resources and money.

Works Cited

Bailey, Ronald. “Offshore Drilling Remains a Risk Worth Taking.” Oil Spills, edited by Tamara Thompson, Greenhaven Press, 2014. Current Controversies. Opposing Viewpoints in Context, ezproxy.vccs.edu:2048/login?url=http://link.galegroup.com/apps/doc/EJ3010893209/OVIC?u=viva2_nvcc&xid=6a4b067c. Accessed 16 Mar. 2017. Originally published as ”Weighing the Benefits & Costs of Offshore Drilling,” Reason Foundation, 4 May 2010.

Davenport, Coral. ”Obama Expected To Ban Offshore Drilling In Some Federal Waters.“ Nytimes.Com, 2017, https://www.nytimes.com/2016/12/19/us/obama-expected-to-ban-offshore-drilling-in-some-federal-waters.html?rref=collection%2Ftimestopic%2FOffshore%20Drilling%20and%20Exploration&_r=0.

Freeman, Bill. ”Fracking Is Not Harmful to the Environment.” The Environment, edited by Lynn M. Zott, Greenhaven Press, 2014. Opposing Viewpoints. Opposing Viewpoints in Context, ezproxy.vccs.edu:2048/login?url=http://link.galegroup.com/apps/doc/EJ3010132406/OVIC?u=viva2_nvcc&xid=795df9b0. Accessed 16 Mar. 2017. Originally published as ”Does Fracking Harm the Environment?”, 12 Feb. 2013.

”Fracking Is Harmful to the Environment.” The Environment, edited by Lynn M. Zott, Greenhaven Press, 2014. Opposing Viewpoints. Opposing Viewpoints in Context, ezproxy.vccs.edu:2048/login?url=http://link.galegroup.com/apps/doc/EJ3010132405/OVIC?u=viva2_nvcc&xid=dab72264. Accessed 16 Mar. 2017. Originally published as ”Fracking, Climate Change, and the Water Crisis,” Issue Brief, Sept. 2012.

O’Malley, Martin. ”Don’t Drill Along the East Coast.” New York Times, 2 Feb. 2015, p. A19(L). Opposing Viewpoints in Context, ezproxy.vccs.edu:2048/login?url=http://link.galegroup.com/apps/doc/A399692391/OVIC?u=viva2_nvcc&xid=418f1d3c. Accessed 16 Mar. 2017.