Debunking the Drilling Propaganda:
The Top Five Myths About Gulf Oil Drilling
The oil and natural gas industries have launched a massive effort to convince legislators and the public to allow new drilling in the eastern Gulf of Mexico three to ten miles off Florida's beaches. Considering recent statements from legislative leaders and recent public opinion polling, the drilling advocates have been able to persuade many Floridians that new drilling in the Gulf is a necessary and positive step for the state. But do their claims hold water? Are they telling us the truth?
Let's take a look at the top five claims the "Drill Baby Drill" folks have been perpetuating in the media and legislature and see how they stand up to scrutiny.
Myth One: New drilling in the Eastern Gulf will bring down gasoline prices.
The Facts:
The state legislature has control over only a small portion of offshore resources -- from three to ten miles off the Florida coast. The federal government controls the rest of the Gulf. So the Florida legislature can allow drilling for only a small portion of the available oil and natural gas.
The U.S. Department of Energy's 2007 Annual Energy Outlook stated that if the restrictions were lifted and new leases granted in 2012, "access to the Pacific, Atlantic, and eastern Gulf regions would not have a significant impact on domestic crude oil and natural gas production or prices before 2030."
The Department of Energy's estimate was based on opening exploration in ALL the currently off-limits regions in the Pacific, Atlantic and Eastern Gulf, and even with all of that there still would be no significant impact on prices or supply until 2030!
A 2009 study from the Department of Energy's Energy Information Administration found that if ALL currently prohibited offshore drilling in the lower 48-states was opened up by 2012, in 2030 the average U.S. price of gasoline at the pump would be 3 cents less.
Now, view the above statistics in light of the fact that any legislation passed by the state legislature can only affect a small percentage of the off-limits offshore areas. The impact on gas prices would be negligible and not seen until well into the distant future, while the potential for damaging Florida's coastline and tourism-dependent economy is very high (see below).
Myth Two: New drilling in the Eastern Gulf will make us less dependent on foreign oil and increase our energy security.
The Facts:
The Department of Energy studies discussed above also belie the claim that drilling off Florida's beaches will make the U.S. more energy independent. Both the 2007 and 2009 studies indicated there would be little impact on domestic production before 2030. Even then, the 2009 study said that opening ALL currently off-limits offshore regions of the lower-48 would result in only a 2.5% decrease in imports by 2030.
In addition, the U.S. Minerals Management Service estimates that the Eastern Gulf contains approximately 3.9 billion barrels of undiscovered oil potential. In 2008, the U.S. consumed 7.14 billion barrels of oil. So, even in the unlikely event there is twice as much oil in the Eastern Gulf as estimated and even if we were able to drain every ounce of it...it would sustain the U.S. for a little more than a year. Not such a huge contribution to energy independence, is it?
Myth Three: New drilling would bring billions of dollars into the state budget, starting immediately.
The Facts:
In an April 2009 committee hearing, a Texas lawyer who represents oil interests told House members that the state of Texas earned $7 billion from drilling royalties last year. In the same hearing, Hank Fishkind, an Orlando economist hired by the industry, said Florida could expect to see $1.6 billion in royalties per year. Miami Herald, April 22, 2009)
But in a House committee meeting this fall, Michael Sole, secretary of the Florida Department of Environmental Protection, said that Texas's annual take from offshore drilling for oil and natural gas is only $45 million. In fact, the Texas General Land Office says that offshore drilling within 10 miles of the coast has brought in a grand total of just over $6 billion in royalties since the 1940's. (Orlando Sentinel, October 29, 2009)
Fishkind's high estimates of the state revenue and job creation that would result from new drilling are often cited by pro-drilling advocates. But what does he base his numbers on? His estimates assume that there are 16 billion barrels of recoverable oil in state waters. As explained above, the Mineral Management Service estimates 3.9 billion barrels of recoverable oil in the entire Eastern Gulf. State waters measure about 4,308 square miles, and the Eastern Gulf is about 100,875 square miles. Fishkind suggests there could be up to 16 billion barrels in an area that covers only 4% of the Eastern Gulf, the entirety of which the Mineral Management Service estimates to contain only 3.9 billion barrels. And he offers no explanation to support this dubious claim.
Myth Four: The latest technology makes drilling completely safe, and there would be little or no impact on Florida's environment or tourism industry.
The Facts:
Drilling advocates are insisting that cutting edge drilling technology is clean and safe and will protect our beaches and coastal ecosystems from damage. If drilling moves forward, they'd better be right about this one, because Florida's economy is heavily dependent on our $65-billion-dollar-a-year tourist industry, and those tourists won't be so likely to come if our beaches look like those in Texas (see photo from July 2009, right).
But here again, there are some problems with their claims. First, Florida lies smack in the middle of a hurricane alley, which means technology that is safer under normal conditions is likely to be subject to extreme conditions. Hurricanes Katrina and Rita destroyed 113 oil platforms, damaged 457 pipelines, caused 124 spills according to the federal Mineral Management Service. The Bush Administration's report "The Federal Response to Hurricane Katrina: Lessons Learned," said "Hurricane Katrina caused at least ten oil spills, releasing the same quantity of oil as some of the worst oil spills in U.S. history. Louisiana reported at least six major spills of over 100,000 gallons and four medium spills of over 10,000 gallons. All told, more than 7.4 million gallons poured into the Gulf Coast region’s waterways, over two thirds of the amount that spilled out during America’s worst oil disaster, the rupturing of the Exxon Valdez tanker off the Alaskan coast in 1989."
And right now, Australia is dealing with a major disaster in the Timor Sea caused by a leak from a drilling platform erected in 2007 using the latest technology and built by a company that claimed it was one of the greenest engineering projects. The rig began leaking15,000 gallons a day on August 21. Despite three attempts to repair it, it continues to leak as of October 21. The resulting oil slick can now be seen from space and is more than 5400 square miles wide, larger than Connecticut and Rhode Island combined (see photo at top of page). Fortunately for Australia, the rig is 155 miles from the coast. Since these proposed new rigs in the Gulf would only be 3 to 10 miles offshore, Florida's beaches wouldn't be so lucky.
In fact, SkyTruth.org has used satellite imagery to show what such a spill might look like if it happened in the Destin Dome (see photo, left), which lies fifty miles from Pensacola and is one of the industry's top targets, or off the coast of Tampa Bay. The white sands of the Emerald Coast might not look so pretty in those advertising photos after a disaster like that.
Myth Five: The Florida Legislature will give this issue a thorough review and an objective analysis before voting to change drilling policy.
The Facts:
In the 2009 session, Rep. Dean Cannon introduced this legislation (using materials prepared by Florida Energy Associates) as an amendment to another bill in committee just a few weeks before the end of the session. With no investigation or consideration, the bill passed the committee and the full House. The Senate decided not to take up the bill with just a week left in session.
This legislation is being pushed by a secretive group called Florida Energy Associates that has hired dozens of influential Tallahassee lobbyists, including the spouse of a prominent lawmaker, but refuses to reveal where their money comes from. At a public forum, lobbyist David Rancourt would say only that the organization was created by a "'god-fearing' collection of American oil and gas explorers...'who wish to remain anonymous for the time being.'" (South Florida Sun-Sentinel, October 29, 2009)
In the meantime, Florida Energy Associates has given $125,000 to the two state political parties in just the last six months. (Florida Division of Elections)
Can we rely on the legislature to resist these powerful special interests and their campaign contributions? Can we trust that they will thoroughly investigate the pros and cons of this issue before voting? The House certainly failed to do so last session; should we believe lawmakers will be more responsible now?
Take Action
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Let Us Decide!
The oil and gas industry has hired dozens of lobbyists and is working hard to convince the Florida Legislature to open up Florida's coastline for drilling three to ten miles off our beaches. Sign the letter to the Legislature and Governor and demand that voters be given a say! More
Contact Your Officials About New Drilling Off Florida's Coasts
Tell your state elected representatives where you stand on the House proposal to allow drilling for oil and natural gas 3 to 10 miles off Florida's coasts. More