Energy Security: The Role of Deepwater Oil Drilling

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.