Offshore Drilling = Prosperity

We have withstood several energy crisis scenarios in the past four decades. The 1973 OPEC Oil Embargo and the 1979 Iranian Revolution shocked markets and caused rationing of gasoline and diesel fuel, long lines and frustration. Prices spiked again in 2008 without a disruption in supply.
Two of the unavoidable and unpredictable costs which can hurt the family budget are motor fuels and electricity. If energy supplies drop and prices rise unexpectedly, it leaves families with less money to buy discretionary consumer goods and services. That weakens the overall economy, which is 70% consumer driven.
With improved energy exploration and drilling technology available, America is now entering an energy boom. In 2012, America overtook Russia as the leading combined producer of oil and natural gas. We are doing hydraulic fracturing, commonly known as “fracking”, in shale formations all around the country. South Carolina is not among the states benefitting from the energy boom.
In 2012, Congress lifted the moratorium for offshore oil and natural gas exploration in our Outer Continental Shelf (OCS), which extends 50-60 miles off the South Carolina coastline. Starting in 2018, energy exploration companies will start conducting seismic testing in the OCS to find out where the pockets of oil and natural gas exist.
Environmental groups have tried to create fear about offshore energy exploration, implying that it will disturb our coastal tourism economy. With potential rigs 50 or more miles off of our coastline, nobody vacationing at South Carolina beaches will see them. If there is a natural gas leak, the methane bubbles will disperse in 600 feet of ocean water. An oil spill would get swept out into the Gulf Stream.
South Carolina has a unique opportunity to become part of America’s energy boom. The Palmetto Promise Institute (www.PalmettoPromise.org) has research indicating that South Carolina offshore drilling would generate 46,000 jobs by 2035 and $2.7 Billion in annual economic activity, $1 Billion in annual state royalty and lease revenue, and $163 Million in annual state tax revenue. Recent polling shows that 71% of South Carolina voters support offshore drilling.
Bill Crowther, a Murrells Inlet resident and President of the Atlantic Energy Alliance, believes this is a great opportunity for improving the South Carolina economy. He stated in a recent news release, “Living along the coast and working with leaders in Georgetown, the prospect of oil and gas exploration is just right to revitalize the Port of Georgetown and provide high wage jobs for the people in our area.”
One of the plans being considered is to build a Liquified Natural Gas (LNG) terminal in Georgetown. Methane gas can be converted to a liquid at a temperature of (-)260 degrees Fahrenheit. As a liquid, natural gas is compressed to 1/600 of its original volume. That allows the transport of large volumes of natural gas on container ships. That would allow American natural gas to be shipped to our European allies, which currently must import most of its natural gas from Russia.
The Atlantic Energy Alliance also supports alternative energy development off of our coast, such as windpower. Crowther states, “With new industry safety standards and a commitment to safe operation and conservation along our coastline, exploration of wind, oil and natural gas could be a jolt to jumpstart our local and state economies.”
Offshore oil rigs also improve fisheries because the rigs serve as artificial reefs. Fisheries are thriving in the Gulf of Mexico where most of our offshore rigs exist. There is no contamination in the Gulf fish relating to the 2010 BP oil spill and tourism in the Gulf states is thriving.
We have a unique opportunity to participate in the American energy boom. We’ll benefit from lower electricity and motor fuel costs, which help our family budgets. We’ll have more disposable income to buy other consumer goods and services, which will help the overall economy. South Carolina will generate billions in new royalty, lease and tax revenue. Most importantly, tens of thousands of South Carolina residents will get high-paying energy industry jobs.
Offshore drilling along South Carolina’s Outer Continental Shelf will lead to unprecedented prosperity. Let’s embrace it!!
John Steinberger is the former chairman of the Charleston County Republican Party, a leading Fair Tax advocate, and a West Ashley resident. He can be reached at John.steinberger@scfairtax.org.