Latest Updates: offshore drilling RSS

• US Determined To Get Oil From Arctic !
  Srikant Rajan 06:25:15 pm on July 25, 2008 | 0 | # |
  Tags: alterntaive energy, arctic reserve, offshore drilling, oil prices, US geological reserve

  Despite numerous objections and countless hurdles,US administration is determined to get oil out of Arctic. In the latest in a series of reports,the US Geological Reserve has found that nearly 20% of the worlds untapped oil is beneath the ice.Translated , the area north of the Arctic Circle has an estimated 1,670 trillion cubic feet of natural gas – two-thirds the proved gas reserves of the entire Middle East.Undoubtedly , this is a substantial quantity that would certainly address the worlds growing energy demand.However ,  there are a host of issues that would act as hurdles in getting this oil out and easing the present price of gas. Firstly,  the Arctic is a protected reserve,already on the green watch list in wake of rising global warming concerns. Any massive exploration would undoubtedly impact the already endangered ecosystem.Additionally there is also the question of ownership of these reserves.Russia , US and Denmark have staked claims over the found oil reserves further adding a political dimension to the entire situation.Given these facts , it would be nearly another decade before it is possible to even glimpse at the huge reserves. Meanwhile it would be prudent to increase focus on renewable to satisfy the present demand.

   

• More Oil Drilling Not To Lower Prices
  Srikant Rajan 03:54:01 am on July 2, 2008 | 1 | # |
  Tags: alternative energy, anwr, arctic national wildlife reserve, fossil fuels, offshore drilling, oil prices

  A study by the US Energy Information and Association(EIA) has revealed that extended offshore drilling would not translate into lower oil and gas prices.The report says that regions in the Outer Continental Shelf (OCS)has a sizeable quantity of oil and gas resources. The OCS region deposits can be technically extracted but the entire process of building additional facilities for the extraction would need a significant investment of time and effort.Hence the price benefit of additional resources would be offset by the long gestation period.Or in other words the much publicized ANWR project would not lead to lower gas prices despite a substantial investment of tax dollars.

  Bush ,Mc Cain and Republicans have repeatedly favored oil extraction and fossil fuels to address the energy challenge.I have highlighted that increased oil and gas resources can best buy us some more time (and even that time looks too long and costly to attain!) to develop an alternative energy plan and execute it.This report should prompt the Republicans to rethink their energy plans for the future.