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Experts offer offshore drilling as bridge to future
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NEWS-TIMES
MIKE SHUTAK
MOREHEAD CITY — Federal officials, petroleum industry leaders and environmental group leaders said Wednesday that offshore drilling in the United States, including in North Carolina, will be the bridge to a future with greater alterative energy sources.
The Carteret County Economic Development Council hosted a symposium on offshore oil and gas exploration Wednesday morning at Carteret Community College before a full house in Joslyn Hall. A panel of six experts in the field of offshore oil and gas drilling was assembled to give presentations and answer questions. Among those who attended were officials from Atlantic Beach, Morehead City and Carteret County.
The panel members were:
• Lisa Flavin, senior policy advisor for the American Petroleum Institute (API), an institute in Washington, D.C., that represents nearly 400 members of the oil and gas industry.
• I. Clark Wright Jr, partner in the Davis Hartman Wright PLLC law firm, where his practice includes environmental law, and former legal advisor to previous state Gov. Jim Martin.
• Sidney Coffee, senior advisor to America’s Wetland Foundation, an organization promoting awareness of the impact of losing Louisiana’s wetlands, and former chairman of the Coastal Protection and Restoration Authority for Louisiana.
• Renee Orr, chief of the leasing division of the U.S. Minerals Management Service (MMS), a federal government bureau that manages oil, gals and other mineral resources on the Outer Continental Shelf (OCS) and is second to third-largest contributor of revenue to the federal government.
• Jon Hrobsky, deputy director of the MMS.
• Fredrick Palmer, manager of communications and government relations for Shell Oil Company.
Ms. Flavin said the country needs all forms of energy, but oil and gas will be the bridge to a future where more alternative energy sources are used.
“A lot of people say we can’t drill our way out of this problem,” she said, referring to the increasing demand for gas. “The United States only has 3 percent of the world’s oil. The thing is, as you explore, resources increase.”
Ms. Flavin said the API supports offshore drilling.
“Oil and natural gas employs 6 million people directly or indirectly,” she said. “It’s a building block for the economy.”
Currently, it’s estimated 3.8 billon barrels of oil and 37 trillion cubic feet of natural gas are available in the OCS off the Atlantic coast. Most of the country’s domestic offshore drilling, however, is concentrated in the Gulf of Mexico.
Mr. Hrobsky said the country’s OCS is 1.76 billion acres of land, and only 2 percent is currently being drilled on.
“But that (2 percent) produces 27 percent of our domestic oil,” he said. “The potential of the outer shelf is vast.”
Currently, 80 percent of the country’s oil comes in through Louisiana and the majority of domestic drilling is done in the Gulf of Mexico. Ms. Coffee said the Louisiana port is, by tonnage, the largest in the world. In spite of its massive oil piping, the state is also home to one-third of the nation’s fisheries.
“Almost 95 percent of marine life in the Gulf of Mexico spends time in these wetlands,” she said. “It’s all about balance; balancing a fragile environment with a national industry.”
Many have expressed concerns about what impact offshore drilling will have on the environment. The statute governing the MMS requires them to have a five-year land-use plan (LUP) for selling leases for drilling. Mr. Hrobsky said the OCS Lands Act governs the MMS.
“Our priorities are the safety of the people out there (drilling) and the environment,” he said.
Since both President George W. Bush and Congress have lifted executive and federal moratoriums on offshore drilling, the MMS has been considering revising the LUP in 2013 to expand areas permitted for drilling on the OCS, and sent out requests for public comments.
“We received over 160,000 comments in the first round,” Mr. Hrobsky said. Ms. Orr said it was an unprecedented number of responses.
“It shows the importance of this issue to the country,” she said. “Fifty-seven percent were in favor of us moving forward with the new plan, while 43 percent were against it.”
Mr. Hrobsky stressed that having a lease does not mean a company has the right to immediately start drilling. Ms. Orr said there are a lot of environmental laws, which affect the industry and must be complied with in order to receive an OCS lease. This often involves a lot of environmental studies.
“The MMS has funded over $800 million in environmental studies,” she said. “Before we drill, we need to fully understand what the environmental situation is in an area.”
All leases are public processes with a 90-day public comment period after a proposed notice of sale is published. The leases can also have stipulations placed them to restrict drilling to protect the environment and local interests.
“We can put in seasonal stipulations,” said Mr. Hrobsky, “only allowing drilling at certain times of the year.”
Mr. Hrobsky said the MMS is in the process of collecting more information about the Atlantic OCS and its oil and natural gas resources. Ms. Orr said the most recent information they have is from 10 exploratory wells drilled in the mid-Atlantic in the 1970s and 1980s.
“We don’t know, geology-wise, what’s out there,” said Mr. Hrobsky.
Even if leasing begins in North Carolina and companies buy leases here, the impact to the environment won’t be the same as it was in the past. Mr. Palmer said a modern oil drilling operation is “not your grandfather’s oil and gas company anymore.”
Modern offshore exploratory drilling rigs are mobile now. Mr. Palmer said they may be on a site for three to four months, then they’re removed. Most drilling is done at depths below 1,500 feet, and the oil platform is no longer a solid structure that far down. Instead, a floating platform is used with hanging weights to hold it in place, allowing the platform to move in the water during severe weather conditions.
The panelists seemed to agree offshore drilling is not going to be a long-term solution to the country’s growing energy needs; alternative energy sources will be needed in the future. Mr. Wright said offshore drilling “won’t make a dent” in the country’s goal of energy independence and national security.
“We need a broader energy portfolio,” he said. “Nuclear energy needs to be a part of it. Coal needs to be a part.”
Mr. Wright also said the state needs to make sure there’s profit-sharing in place to ensure the state receives a share of whatever revenue comes from drilling, if leasing begins in North Carolina, which may be possible in 2013 at the earliest.
The need to make compromises and concessions was also said about developing alternate energy sources. Mr. Wright said currently North Carolina is 100 percent “consumer state” when it comes to energy.
“We need to change that,” he said. “We need to start contributing…in the end some of us may have to accept a windmill we can see or an offshore drill that has some onshore impact.”
Mr. Hrobsky said everybody likes the concept of green energy until its being sited in their back yard.
“Some hard decisions have to be made,” he said.
MOREHEAD CITY — Federal officials, petroleum industry leaders and environmental group leaders said Wednesday that offshore drilling in the United States, including in North Carolina, will be the bridge to a future with greater alterative energy sources.
The Carteret County Economic Development Council hosted a symposium on offshore oil and gas exploration Wednesday morning at Carteret Community College before a full house in Joslyn Hall. A panel of six experts in the field of offshore oil and gas drilling was assembled to give presentations and answer questions. Among those who attended were officials from Atlantic Beach, Morehead City and Carteret County.
The panel members were:
• Lisa Flavin, senior policy advisor for the American Petroleum Institute (API), an institute in Washington, D.C., that represents nearly 400 members of the oil and gas industry.
• I. Clark Wright Jr, partner in the Davis Hartman Wright PLLC law firm, where his practice includes environmental law, and former legal advisor to previous state Gov. Jim Martin.
• Sidney Coffee, senior advisor to America’s Wetland Foundation, an organization promoting awareness of the impact of losing Louisiana’s wetlands, and former chairman of the Coastal Protection and Restoration Authority for Louisiana.
• Renee Orr, chief of the leasing division of the U.S. Minerals Management Service (MMS), a federal government bureau that manages oil, gals and other mineral resources on the Outer Continental Shelf (OCS) and is second to third-largest contributor of revenue to the federal government.
• Jon Hrobsky, deputy director of the MMS.
• Fredrick Palmer, manager of communications and government relations for Shell Oil Company.
Ms. Flavin said the country needs all forms of energy, but oil and gas will be the bridge to a future where more alternative energy sources are used.
“A lot of people say we can’t drill our way out of this problem,” she said, referring to the increasing demand for gas. “The United States only has 3 percent of the world’s oil. The thing is, as you explore, resources increase.”
Ms. Flavin said the API supports offshore drilling.
“Oil and natural gas employs 6 million people directly or indirectly,” she said. “It’s a building block for the economy.”
Currently, it’s estimated 3.8 billon barrels of oil and 37 trillion cubic feet of natural gas are available in the OCS off the Atlantic coast. Most of the country’s domestic offshore drilling, however, is concentrated in the Gulf of Mexico.
Mr. Hrobsky said the country’s OCS is 1.76 billion acres of land, and only 2 percent is currently being drilled on.
“But that (2 percent) produces 27 percent of our domestic oil,” he said. “The potential of the outer shelf is vast.”
Currently, 80 percent of the country’s oil comes in through Louisiana and the majority of domestic drilling is done in the Gulf of Mexico. Ms. Coffee said the Louisiana port is, by tonnage, the largest in the world. In spite of its massive oil piping, the state is also home to one-third of the nation’s fisheries.
“Almost 95 percent of marine life in the Gulf of Mexico spends time in these wetlands,” she said. “It’s all about balance; balancing a fragile environment with a national industry.”
Many have expressed concerns about what impact offshore drilling will have on the environment. The statute governing the MMS requires them to have a five-year land-use plan (LUP) for selling leases for drilling. Mr. Hrobsky said the OCS Lands Act governs the MMS.
“Our priorities are the safety of the people out there (drilling) and the environment,” he said.
Since both President George W. Bush and Congress have lifted executive and federal moratoriums on offshore drilling, the MMS has been considering revising the LUP in 2013 to expand areas permitted for drilling on the OCS, and sent out requests for public comments.
“We received over 160,000 comments in the first round,” Mr. Hrobsky said. Ms. Orr said it was an unprecedented number of responses.
“It shows the importance of this issue to the country,” she said. “Fifty-seven percent were in favor of us moving forward with the new plan, while 43 percent were against it.”
Mr. Hrobsky stressed that having a lease does not mean a company has the right to immediately start drilling. Ms. Orr said there are a lot of environmental laws, which affect the industry and must be complied with in order to receive an OCS lease. This often involves a lot of environmental studies.
“The MMS has funded over $800 million in environmental studies,” she said. “Before we drill, we need to fully understand what the environmental situation is in an area.”
All leases are public processes with a 90-day public comment period after a proposed notice of sale is published. The leases can also have stipulations placed them to restrict drilling to protect the environment and local interests.
“We can put in seasonal stipulations,” said Mr. Hrobsky, “only allowing drilling at certain times of the year.”
Mr. Hrobsky said the MMS is in the process of collecting more information about the Atlantic OCS and its oil and natural gas resources. Ms. Orr said the most recent information they have is from 10 exploratory wells drilled in the mid-Atlantic in the 1970s and 1980s.
“We don’t know, geology-wise, what’s out there,” said Mr. Hrobsky.
Even if leasing begins in North Carolina and companies buy leases here, the impact to the environment won’t be the same as it was in the past. Mr. Palmer said a modern oil drilling operation is “not your grandfather’s oil and gas company anymore.”
Modern offshore exploratory drilling rigs are mobile now. Mr. Palmer said they may be on a site for three to four months, then they’re removed. Most drilling is done at depths below 1,500 feet, and the oil platform is no longer a solid structure that far down. Instead, a floating platform is used with hanging weights to hold it in place, allowing the platform to move in the water during severe weather conditions.
The panelists seemed to agree offshore drilling is not going to be a long-term solution to the country’s growing energy needs; alternative energy sources will be needed in the future. Mr. Wright said offshore drilling “won’t make a dent” in the country’s goal of energy independence and national security.
“We need a broader energy portfolio,” he said. “Nuclear energy needs to be a part of it. Coal needs to be a part.”
Mr. Wright also said the state needs to make sure there’s profit-sharing in place to ensure the state receives a share of whatever revenue comes from drilling, if leasing begins in North Carolina, which may be possible in 2013 at the earliest.
The need to make compromises and concessions was also said about developing alternate energy sources. Mr. Wright said currently North Carolina is 100 percent “consumer state” when it comes to energy.
“We need to change that,” he said. “We need to start contributing…in the end some of us may have to accept a windmill we can see or an offshore drill that has some onshore impact.”
Mr. Hrobsky said everybody likes the concept of green energy until its being sited in their back yard.
“Some hard decisions have to be made,” he said.
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