The question of increased drilling is controversial, with “clean energy” and environmentalists pointing to what they say are unavoidable negative consequences of increased oil production. It is true that there can be negative consequences, but these can be addressed by upholding safety standards in the industry and focusing on investment in reputable oil operators working with expert partners like the Southlake Resources Group. What is not often considered are the very real benefits that can come with expanding US oil production.
Oil reserves are very often located in remote or difficult to access areas where economic opportunities are limited. The expansion of exploration and recovery efforts brings much needed economic activity to these areas, and high-paying jobs for local people. Those people will spend their wages in the local community which helps to spread the benefits of these jobs. This is especially important in remote Arctic communities. Job opportunities are available at all levels, from skilled to unskilled, so that the benefits are available to all members of the community. They also provide opportunities for upward mobility as a result of training and on the job experience. Additionally, support or spin-off jobs are created in the wider community as services expand to support increased people and activity.
With increased opportunities to drill come increased opportunities to improve the infrastructure and technologies. This means that the industry as a whole benefits from the opportunity to develop better and safer practices because it provide economic incentives for producers to invest in research and development that may otherwise be too costly. Already, off-shore drilling has become much safer than it was in 2010 as a result of efforts to improve prevention and response strategies.
The inescapable fact is that much of the global supply of oil is in other countries. Many of those countries, such as Canada, are reliable and long-term partners of the US, but many of those countries are not. Even when dealing with friendly partners, dependence on foreign sources of energy means that there is a degree of vulnerability to the political agendas of other countries. Other sources of energy, including renewables, must be developed at the same time to further reduce dependency.
Lower Prices and Economic Boost
Increased global supplies of oil will help keep prices lower. Lower prices can be a double-edged sword, but in general if the costs of oil are lower and more importantly stable, then every industry that depends on oil is able to keep its prices lower as well. Business runs on transportation whether in the air or on roads, and price of everything that needs to be moved from one place to another will be affected by basic transportation costs. Lower costs therefore have an immediate for consumers. Relatively stable prices have another benefit – if businesses and producers can count on reliable prices over a longer period, they are better able to make investments which can contribute to overall economic growth.
Ironically, although people are quick to point to the environmental dangers posed by off-shore drilling in particular, it may actually be the case that off-shore drilling helps to prevent damage. Many oil spills are the result not of an accident but rather of natural seepage from the sea floor. Studies are suggesting that drilling in these areas helps to reduce the pressure causing the seepage, and may help to prevent oil spills. Another unexpected environmental benefit of offshore drilling is that the rigs actually act as artificial reefs and create marine habitats for creatures of all kinds.