US not making the most of oil and gas opportunities

US Oil and Gas

At a time when the nation is trying to develop its domestic oil and gas production in an effort to wean itself off foreign energy, you would hope the government makes the most of every opportunity that comes their way that can facilitate this process.

However, since Congress let expire the moratorium on oil and natural gas exploration in the waters of the Florida coast, the chance to create thousands of new jobs, approximately $1.7 trillion in revenue and the chance of energy security have not materialised. Nearly a year has passed and the US has yet to reap a single benefit.

But last year's advancement in the House did open the door on this issue of drilling for oil and gas off the coast of Florida, and its potential economic benefits, and support is now finally beginning to gather pace. Legislative leaders have even pledged their support to revisit it next session.

Progress has been painfully slow which can only be down to the interference from environmentalists, because the benefits have always been glaringly obvious: According to an ICF International study, offshore developments would create 13,142 jobs and $428 billion in revenues through offshore development, helping Florida to overcome its nearly 11 percent unemployment rate.

At the moment, Florida relies heavily on its tourism industry to bring in revenue, and critics of the drilling argue the visible presence of offshore oil rigs will deter tourists from flocking to their popular beaches. This argument has some grounding, but the fact remains that the state must diversify in an ever more challenging global economy, especially as travelling is now so easy and Florida faces more competition for tourists than at any other point in history.

Diversifying to offshore drilling will be lucrative to say the least, both for the state and the nation as a whole. ICF International estimate that Florida's production from the Outer Continental Shelf could total 19.7 billion barrels of oil and 56.5 trillion cubic feet of clean-burning natural gas - providing part of America's energy solution, as our nation attempts to stay competitive in the face of increased globalization.

On the environmental front, conservationists may not have as much to fear as they first thought. Through advanced technology, the oil and natural gas industry has reduced its environmental footprint, minimizing the impact on ecosystems and wildlife. The industry can now find, develop and deliver oil and natural gas causing minimal damage to the environment. These technological developments allow oil and gas companies to access the same amount of reserves with half the number of wells it took 20 years ago.

It is believed that known US domestic fossil fuel reserves are enough to power 65 million cars for 60 years and heat 60 million households for 160 years. And what of the as yet undiscovered resources? In 1987, the Minerals Management Service estimated approximately 9 billion barrels of oil lay in the Gulf of Mexico, and by 2006, that estimate ballooned to 45 billion.

Other than making a huge contribution to the dismal unemployment market, the careful and considered expansion of drilling can make Florida an integral part of the nation's energy security, keeping the steady supply of traditional fuels flowing until renewable energy is ready to take the mantle and lead us into a completely clean and sustainable future.

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