Oil is one of the most important raw materials in the world, especially for industrialized nations. From an ordinary commuter to multinational companies, everyone has a need for oil in one way or another. It fuels vehicles and airplanes, drives machinery, and generates power that allows us to use our computers, and so on. Oil is also important for the economy.
Oil and gas companies, in general, employ thousands of people across the globe. Many of these companies have their oil rigs concentrated in Middle Eastern countries where large oil deposits abound. However, we consume more than 80 million barrels of these natural resources every day that it will not be too long before they run out. This is why many oil-producing countries today are looking at offshore drilling as an alternative option.
What is Offshore Oil Drilling?
Offshore drilling refers to a drilling operation on a seabed from an oil rig in order to draw out the oil beneath the sea. Currently, the most popular region for kind of drilling is in the continental shelf, which contains a vast amount of oil under it.
List of Pros of Offshore Drilling
1. Increases supply.
You already know how the law of supply and demand works – the higher the supply, the lower the demand, thus, the lower the fuel prices.
2. Energy self-reliance.
One oil rig could provide a big portion of a nation’s energy needs. This diminishes that country’s dependence on the OPEC conglomerate, hedging it against the oil-shortages that OPEC might create to manipulate oil prices.
3. Support economic growth.
Even today, majority of countries are still developing. Opening up an offshore oilrig increases a country’s chance to develop into an industrialized nation.
List of Cons of Offshore Drilling
1. Dangerous to environment.
To stress the point, let us take you back to April 20, 2010 when one of the worst oil spills in U.S. history happened, the oil spill in the Gulf of Mexico. Within days of the explosion and the sinking of the Deepwater Horizon rig, 11 people died and an estimated 3.19 million barrels of oil leaked on the ocean floor. The result was devastating: thousands of deep-see corals were damaged and millions of fishes and wildlife were affected. Hundreds of pelicans black with oil were washed up on shores, along with smothered turtles and fishes belly-up in brown sludge, because of that disaster.
2. Could be harmful to human health.
Oil spills have potential effect on human health too. Exposure to light crude oil can irritate skin and swallowing small amount of it can upset stomach as well cause diarrhea and vomiting.
3. Air pollution.
The offshore drilling process produces an enormous amount of air pollution, the main cause of global warming.
4. Expensive startup.
An oil rig can be profitable in the long run, but it requires billions of dollars to get started. From the oil exploration process to the installation of the rig into place, an enormous amount is needed. This is why most countries partner with a private organization to finance the rig.
Conclusion
Offshore drilling offers lots opportunities for a developing nation. However, its cons should be carefully considered in order to know if it is a risk worth taking.