The U.S. and Its Crude Oil Deficit
President Barack Obama has just granted the first deep-water oil-drilling permit in his country, since the greatest environmental disaster in U.S. history happened nine months ago.* On April 20, 2010, an explosion shook the steel structure designed to release oil from the seabed. Two days after the explosion, one of the most advanced pieces of industrial engineering disappeared underwater in a crash that killed 11 workers. Until that moment, with typical arrogance, British Petroleum — the company responsible for the operation of the failed platform — bragged about its ability to handle the unexpected.
The facts show a very different reality, given that Obama called the explosion of the platform an “environmental 9/11.” The nearly 5 million barrels of oil discharged into the ocean caused tremendous damage to the region and paralyzed its main productive activities. According to estimates, BP will pay around $40 billion dollars in compensation.
Some people wonder about the inopportune timing of the announcement from the White House in issuing a deep-water drilling permit. Some analysts believe that this is closely linked to what is happening in the Middle East and North Africa. The mere possibility of an oil shortage causes the U.S. authorities to tremble. Whether it is possible or not, the mere speculation causes prices to skyrocket upward. In fact, a barrel of oil, with some variation, has continued to cost over $100. Working at a depth of over 500 meters below sea level requires special permits, but the sign of the resumption of work safeguards Obama from criticism, in case there is a fuel shortage in the United States.
On the other hand, the president is cautious in that he has authorized the operations of a platform that was already operating. The defining moment will take place when deciding whether or not to authorize the development of new wells. The head of state is in a difficult dilemma. Maintaining restrictions on exploitation in deep water would prevent the likelihood of further disasters; however, he risks the oil lobby’s reproach in sacrificing some energy independence, and he is more exposed to the swinging movement of the turbulent Arab world.
The United States currently imports about two-thirds of its oil. The country reached its maximum production peak in 1971. Since then, every president has promised to end the “oil addiction.” However, far from decreasing, it has only increased with each leader. Chile itself had its peak oil production in 1982, and the demand is increasing.
* Editor’s Note: At the time of the original article’s publication, the explosion had occurred over 10 months prior.
The facts show a very different reality, given that Obama called the explosion of the platform an “environmental 9/11.” The nearly 5 million barrels of oil discharged into the ocean caused tremendous damage to the region and paralyzed its main productive activities. According to estimates, BP will pay around $40 billion dollars in compensation.
Some people wonder about the inopportune timing of the announcement from the White House in issuing a deep-water drilling permit. Some analysts believe that this is closely linked to what is happening in the Middle East and North Africa. The mere possibility of an oil shortage causes the U.S. authorities to tremble. Whether it is possible or not, the mere speculation causes prices to skyrocket upward. In fact, a barrel of oil, with some variation, has continued to cost over $100. Working at a depth of over 500 meters below sea level requires special permits, but the sign of the resumption of work safeguards Obama from criticism, in case there is a fuel shortage in the United States.
On the other hand, the president is cautious in that he has authorized the operations of a platform that was already operating. The defining moment will take place when deciding whether or not to authorize the development of new wells. The head of state is in a difficult dilemma. Maintaining restrictions on exploitation in deep water would prevent the likelihood of further disasters; however, he risks the oil lobby’s reproach in sacrificing some energy independence, and he is more exposed to the swinging movement of the turbulent Arab world.
The United States currently imports about two-thirds of its oil. The country reached its maximum production peak in 1971. Since then, every president has promised to end the “oil addiction.” However, far from decreasing, it has only increased with each leader. Chile itself had its peak oil production in 1982, and the demand is increasing.
* Editor’s Note: At the time of the original article’s publication, the explosion had occurred over 10 months prior.