Another Step Forward: Reconsidering the Current State of Offshore Drilling in the Arctic

NOTES

Another Step Forward: Reconsidering the Current

State of Offshore Drilling in the Arctic

AUSTIN HOLTSHOUSER*

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

I. Brief Overview of the Current Offshore Drilling Regime . . . . . . . . . . . . 137

A. The Core Laws Governing Offshore Drilling Regulations in the

United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137

B. The Core Governmental Agencies Regulating Offshore Drilling in

the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

II. Inherent Problems And Concerns With Offshore Drilling In The Arctic

And Congressional Attempts To Mitigate Them. . . . . . . . . . . . . . . . . . . 139

A. Inherent Problems With Offshore Drilling in the Arctic . . . . . . . . . 139

B. Current Arctic Offshore Drilling Regulations. . . . . . . . . . . . . . . . . 142

C. Problems With the Current Arctic Offshore Drilling Regulations . . . 144

III. Proposed Solutions to the Problems Still Plaguing Offshore Drilling in the

Arctic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146

A. Infrastructure Projects to Support Offshore Drilling in the Arctic . . 146

B. Specialized Research Committee . . . . . . . . . . . . . . . . . . . . . . . . . 149

C. Amend Regulations to Further Reduce Pollution Associated With

Offshore Drilling in the Arctic . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

INTRODUCTION

Deepwater drilling has had a signif‌icant impact on the United States economy

by increasing the current oil supply and making the economy less dependent on

foreign countries.

1

In fact, because of deepwater drilling and other innovative

technologies, the International Energy Agency predicts that the United States will

* Georgetown Law, 2021; Michigan State University, B.A. 2015. © 2020, Austin Holtshouser. The

author thanks his family for their never-ending support, and the editors of the Georgetown

Environmental Law Review.

1. LINCOLN L. DAVIES ET AL., ENERGY LAW AND POLICY 801 (2d ed. 2018).

135

become a net exporter of oil by the late 2020s.

2

Due to continuous technological

advancements, oil drilling has been able to take place at extreme depths, giving

drillers access to oil reserves that were previously thought to be unattainable––

but at what cost?

3

Because of the lower temperatures and higher pressures associ-

ated with these extreme depths, the risks and complications of drilling are signif‌i-

cantly greater than those at traditional depths.

4

These risks are evident from the 2010 Deepwater Horizon incident. In April

2010, British Petroleum’s (“BP”) Deepwater Horizon rig was in the process of

completing a deepwater oil well when an explosion occurred from a well blow-

out.

5

As a result of the f‌ire and explosion on the oil rig, eleven members of the

crew were killed and oil and natural gas were released into the Gulf of Mexico.

6

As a result of the explosion, f‌ive million barrels of oil poured into the Gulf over a

period of roughly three months.

7

The overall effects of this event on the Gulf’s ec-

ological system were devastating and would take years to overcome.

8

Further,

this accident illustrated that even with advanced technology, deepwater drilling is

risky and safety cannot be completely ensured.

Discussions over offshore drilling in the Arctic Ocean have turned into highly

contested policy issues. Global warming has caused iced-over parts of the Arctic

Ocean to melt and become more accessible for oil exploration.

9

However, due to

the inherent qualities of the Arctic environment and the current infrastructure in

place, there are many physical challenges involved with drilling in this area.

10

In

fact, the effects of an oil spill similar to Deepwater Horizon could be drastically

magnif‌ied in the Arctic.

11

While many post-Deepwater Horizon regulations were

put into place to mitigate the risk from future drilling events, it seems as most of

those regulations were not designed to address the unique physical challenges of

the Arctic. In order for drilling in the Arctic to become a reality, further regulation

is needed.

In the face of these risks, many people wonder why companies should even bother

exploring offshore drilling in the Arctic region. The answer lies in the massive

2. INT’L ENERGY AGENCY, WORLD ENERGY OUTLOOK 2017, EXECUTIVE SUMMARY 4 (2017).

3. See DAVIES ET. AL., supra note 1, at 802–03.

4. See id.

5. CURRY L. HAGERTY & JONATHAN L. RAMSEUR, CONG. RSCH. SERV., R41262, DEEPWATER

HORIZON OIL SPILL: SELECTED ISSUES FOR CONGRESS 1 (2010), https://perma.cc/K7FS-26C5.

6. Id.

7. Naama Hasson, Deep Water Offshore Oil Exploration Regulation: The Need for a Global

Environmental Regulation Regime, 4 WASH. & LEE J. ENERGY, CLIMATE, & ENV’T 277, 279 (2013).

8. Id.

9. LAURA B. COMAY, CONG. RSCH. SERV., R44692, FIVE-YEAR PROGRAM FOR FEDERAL OFFSHORE

OIL AND GAS LEASING: STATUS AND ISSUES IN BRIEF 6 (2017).

10. Id.

11. CHARLES EBINGER ET AL., BROOKINGS INST., OFFSHORE OIL AND GAS GOVERNANCE IN THE

ARCTIC: A LEADERSHIP ROLE FOR THE U.S. 1–2 (2014).

136 THE GEORGETOWN ENVTL. LAW REVIEW [Vol. 33:135