It is understood that oil and gas drilling comes along with various harmful environmental challenges. This is more so in the environmentally sensitive areas like the offshore in the ocean regions. Due to this, many countries have developed various laws restricting the drilling of oil in these areas that have been identified to be sensitive to protect them from the anticipated damages. United States being the super power country in the world has been a role model in advancing this environmental protection policy.
However, time has come that it should change or lift such laws since they seem to be having devastating impacts to the ordinary people of America while they continue to please the elite only. In essence, the laws must be changed mainly because of the following reasons (Mike, 2007, p. 24).
To begin with, the demand for oil and gas has been increasing rapidly globally and there are no signs of the demand declining due to the high growth rate of America, China, India and some other developing countries in Africa.
Alongside this phenomena, the supply of oil gas by the foreign countries has been declining and there even likely hood of complete stoppage of supply. Given that this country controls 80% of supply in the oil and gas consumed in America this will lead to severe negative impacts on the economy as well as national security. The laws has led to underutilization of United States domestic oil and gas resources.
The Research paper on Oil: How Soon Will Global Supplies Be Exhausted
Modern society is extremely dependent on oil. Whether it be on transportation, food production or manufacturing, all these operations need oil to be carried out. Modern society is also characterized by the steady increase in population. This population increase also implies an increased dependency on oil. This dependency is currently supported by the present supply of oil from reserves. However, ...
This has led to dependency on foreign countries for supply of gas and oil thus making the cost of energy supply to go up. To worsen the situation, the government has imposed high taxes on the oil thus complicating the problem of high energy cost. The laws that governs drilling of oil and gas in environmentally sensitive areas has constantly led to an increase in the prices. This is by the virtue that these areas are strong deposits of these products. The laws therefore impends there drilling leading to law supply that the demand factor.
Consequently, high demand than the supply leads to an increase in the price of these products (Myron, John, 2005, p. 31).
Drilling of the oil and gas in the restricted site will automatically increase production hence higher production and revenue returns. The oil reserves at this sites is approximated as 100 billion barrels and if explored it be able to reduce the dependency on foreign countries hence the prices will decline significantly across the country and also improve energy security nationally.
Again, the oil prices are set by the businessmen in the market depending on the anticipated future supplies and value . As result, expected increase in supply will lead to drastic decline on prices. Out of this, if USA declares that it is extending oil drilling to this restricted areas, it will make the suppliers to lower the price oil (Mike, 2007, p. 28).
Another reason is that the oil shortage has led to diversion of corn supply from food stores to bio fuel industries thus causing the prices of corn to continue increasing. This has had negative impact on national food security and to some extend across the globe. In addition, the drilling of oil will help in bridging the gap in our trade deficits that has been increasing as result of import of oil and gas. It will also help to create highly paying technical jobs for the United States citizens.
The Essay on Why Oil Prices Keep Falling
Base on the world economic review and studies shows that there are basic reasons why oil prices in global aspect keep on falling. Less Demand, More Oil. The oil price is partly determined by actual supply and demand, and partly by expectation. Demand for energy is closely related to economic activity. Then, over the last year, demand for oil in places like Europe and Asia, suddenly began weakening ...
Finally, by exploring US domestic resources will enhance generation of tax revenue from more lease sales, income tax, excise duty and royalties. This will go a long way to assist in development of infrastructure by providing funds (Myron, John, 2005, p. 42).
To cushion the negative impacts to the environment, US has developed modern technologies that can be used for drilling at this sites with limited disturbance to the environment.
With all these benefits and favorable conditions, US cannot afford to let the opportunity go and should therefore change its laws to attract conventions that allow this drilling.
Reference Mike Bradshaw (2007) The ‘Greening’ of Global Project Financing: The Case of the Sakhalin-II Offshore Oil and Gas Project. The Canadian Geographer, Vol. 52, pp. 24, 28 Myron Marquis & John Moore (2005) International Energy Policy, the Arctic and the Law of the Sea. New York, Brill, pp. 35, 42
