Should We Ban Offshore Drilling of Oil in the U.S.?

By Tim Connolly

There is a tremendous amount of concern over the BP Gulf of Mexico oil spill; and senators, congressional representatives, and even President Obama have called for the suspension of offshore oil drilling, and its possible termination. Is this possible, or even the right decision for our country? Let’s look at the data provided today from Gibson Consulting Online. All of the oil that comes from the Gulf is used in the U.S. The total current percentage of oil produced in the U.S. for our consumption by offshore wells is 37%. If we only look at the Gulf of Mexico, that percentage is still 32% of all the oil consumed in the USA. Given that during the 1974 Arab Oil Embargo the Middle East provided 37% of the non-communist world with all of its oil, we can easily see the magnitude of disruption in our markets if we eliminated 37% of all oil produced in the USA - long lines, perhaps $150-200 per barrel oil prices, and an economic crash that would make the last two years look tame. [more...]