Bp - Oil Spill

Energy Research Journal 2 (2): 38-50, 2011 ISSN 1949-0151 © 2011 Science Publications

The Significance of Deepwater Oil Drilling for the US Energy Security: The Case of the Gulf of Mexico

Hafez Abdo and Matthew Vellacott School of Nottingham Trent, University Burton Street, Nottingham NG1 4BU, UK

Abstract: This study seeks to quantify and model the significance of the deepwater oil development for domestic US energy supplies in the short-term. It explores the significance and potential contribution deepwater oil supply from the Gulf of Mexico (GoM) can make in providing energy security to the US. The output of this research demonstrates the growth in deepwater oil production and how this latter relates to total US oil production over the next 10 years; and therefore the role it can play in providing energy security to the USA. The literature offers commercial and academic debate on this topic. The research model analyses current available data and make sensible assumptions on the likely future growth of deepwater oil production in the GoM based on a number of scenarios. Our results support the high/best case and suggest that deepwater oil from the GoM can significantly provide energy security to the US on the short term. However, on the long term and in order to maintain its energy security, the US needs to develop and use renewable sources of energy. Key words: Deepwater oil, energy, Gulf of Mexico, security INTRODUCTION Domestic US oil production is in decline. A growing majority of oil supply to the US now comes from foreign sources. This creates a situation of energy vulnerability or ‘in-security’ as the US does not have direct control of its own energy supply. This dynamic is a challenge to the US both politically and economically; politically because the US is a world leader and economically because the US has one of the largest global economies. One of the most active and controversial global deepwater regions is the Gulf of Mexico (GoM), it has...