Offshore Drilling Ban History

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Offshore Drilling Ban History

Since the late 1960s, the United States has debated the pros and cons of offshore oil drilling. Because of a number of legislative actions throughout history, the federal government has rights to control the actions of companies in most maritime waters. Following a series of accidents that resulted in oil spills, a nearly full ban on offshore drilling was put into place at different times by both Congress and the president. However, confrontation continued for years because of the actions of the island nation of Cuba and the rising prices of oil to Americans, culminating in a number of political actions during the early 21st century.

  1. Legal Aspects

    • According to the United States Constitution, the federal government has power over the navigable waters surrounding the nation. This has been upheld both legislatively and judiciously on several occasions. In 1953, the Submerged Lands Act and Continental Shelf Lands Act both reiterated Commerce Clause that gave the power to the federal government. This was followed by a Supreme Court decision of 1960, which established ownership of the bordering waters out to 3.5 miles as belonging to the states, with the federal government controlling the rest. The exceptions are Texas and Florida with 10.5 miles. These laws have given the federal government authority to control oil drilling facilities operating outside these states.

    Early Events

    • The backlash against offshore oil drilling was heavily sparked by a major oil spill from a Unocal platform off the coast of Santa Barbara, Calif., in 1969. While the initial oil leak was contained, a backlash from the public prompted the state to remove the company's state charter. This was followed in 1981 with a congressional ban on drilling on the outer-continental shelf. The situation grew worse due to a oil spill from the Exxon Valdez tanker in Prince William Sound, Alaska, in 1989. This spill dumped 10.8 million gallons of oil into the ocean, the largest environmental disaster caused by humans in history. The public attention of the event and subsequent backlash from environmentalists pointing out the dangers of offshore drilling prompted President George H.W. Bush to sign a moratorium on the activity in 1990.

    Significance

    • Since the beginning of the offshore drilling ban, a debate has existed within the political framework of the United States. Opponents of the offshore ban believe that opening up oil wells in the oceans off the coast of the country would help drive down fuel prices for consumers as well as make America safe against economic threats from oil-trading countries. However, according to the U.S. Department of Energy, the five-year time frame between leasing the areas for oil drills and the actual production time would mean little impact on fuel prices. Between 2012 and 2030, oil production would increase 1.6 percent.

    Considerations

    • One challenge made by proponents of offshore drilling is the fact that the country of Cuba, located within U.S. federal waters, started drilling off of its own coast. In addition, according to Time magazine, the country is prepared to begin drilling between Florida and Cuba. This deal was further announced on Oct. 31, 2008, by a joint conference between Brazil and Cuba in a deal with the Petrobras oil company to supply foreign sources with the oil.

    Bush Administration

    • During the second Bush administration, the debate about oil drilling became a central political issue. Although Texas and Louisiana have continued to drill for oil within the 10.5 mile area around the state, a 2006 compromise opened up a 8.3 million acre area in the Gulf of Mexico to offshore drilling. Two years later, President George W. Bush lifted the executive order signed by the elder Bush, opening up the possibility of offshore drilling. However, with the 1981 ban still in place, companies cannot bid on leases until 2012.

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  • Photo Credit Oil Platform; US Federal Government; Public Domain

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