Why Are We Drilling at 5,000 Ft. in the First Place?

Here’s an excellent question from Charles Krauthammer:

“Why are we drilling in 5,000 feet of water in the first place?

Many reasons, but this one goes unmentioned: Environmental chic has driven us out there. As production from the shallower Gulf of Mexico wells declines, we go deep (1,000 feet and more) and ultra deep (5,000 feet and more), in part because environmentalists have succeeded in rendering the Pacific and nearly all the Atlantic coast off-limits to oil production (see map, source).

And of course, in the safest of all places, on land, we’ve had a 30-year ban on drilling in the Arctic National Wildlife Refuge. So we go deep, ultradeep — to such a technological frontier that no precedent exists for the April 20 blowout in the Gulf of Mexico.”

About Mark J. Perry 262 Articles

Affiliation: University of Michigan

Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.

He holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University in Washington, D.C. and an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota.

Since 1997, Professor Perry has been a member of the Board of Scholars for the Mackinac Center for Public Policy, a nonpartisan research and public policy institute in Michigan.

Visit: Carpe Diem

Be the first to comment

Leave a Reply

Your email address will not be published.