Offshore Drilling in the Atlantic January 2018 Scientific evidence and history prove that drilling for oil and gas reserves off the Atlantic coast will unnecessarily imperil wildlife and threaten local economies for East Coast communities. In 2016, strong opposition from citizens businesses and elected officials, led to the federal government excluding the Atlantic from leasing for oil and gas development. In January 2018, the US Bureau of Ocean Energy Management (BOEM) ignored the voices of the people and released a new 5-year leasing program the 2019-2024 Outer Continental Shelf Oil and Gas Leasing Draft Proposed Program that includes the Atlantic Ocean including Georgia. The federal administration should exclude Georgia and the Atlantic Outer Continental Shelf from the 2019 2024 OCS Oil and Gas Leasing Program for the following reasons. Supply does not meet demand. Minimal amounts of oil and gas are likely available from the Mid- and South Atlantic Planning Areas (see Figure A). The U.S. Department of Energy has concluded that the limited oil and gas resources off the Atlantic coast would have insignificant impacts on consumer prices and foreign oil dependencies. Any new jobs would come at the expense of existing state economies. An emergence of the oil and gas industry in the Atlantic would industrialize the East Coast, which has a thriving and growing ocean/shore-based economy. - In 2012, there were nearly 250,000 ocean-related jobs in Virginia, North Carolina, South Carolina and Georgia. - The ocean economy in these states contributed $14.6 billion to the economies in the region and provided more than $7.5 billion in wages in the same year. In Georgia, the ocean economy contributed over $2 billion and supports 24,000 jobs. - Eco-tourism and natural experiences, like those on Little St Simons Island, Georgia are dependent on unspoiled coastlands and can provide revenues for the protection of special natural areas and scenic landscapes. Seismic testing endangers wildlife on a massive scale. Seismic testing will be used to further understand the location and expanse of oil and gas reserves. Seismic activities disrupt marine mammals and sea turtles, kill fish eggs and larvae of important species, and scare fish away from important habitat. - BOEM s 2014 assessment indicated that that 138,000 animals will be affected by seismic testing in the Atlantic. - Biologists and marine experts fear Atlantic seismic blasts may be the tipping point stressor causing the extinction of the critically endangered North Atlantic right whale. - Seismic surveys have resulted in catch rates of cod and haddock to decline by 40 to 80 percent for thousands of miles. - The South Atlantic Fisheries Management Council adopted policy stating seismic testing directly impacts ecosystems and fish habitats critical to fish, like grouper and snapper, which is a multi-million dollar recreational and commercial staple for the South Atlantic regional economy. www.onehundredmiles.org 1
We have too much to lose In BOEM s Draft Proposed Program, ecological value is measured by the Relative Environmental Sensitivity - defined as the sensitivity to potential impacts from oil and gas exploration and development as measured by indicators of vulnerability to impact (see Figure B). Georgia and the South Atlantic Planning Area rank among the highest in the country. And too little to gain. BOEM s Draft Proposed Program included a Net Economic Valuation (NEV) that ranks planning areas based on the discounted gross revenues from the produced oil and natural gas minus the costs required to realize the economic value of the resources. The South Atlantic Planning Area was included in the Draft Proposed Program, although it ranks at or near zero NEV to our society as a whole (see Figure C). Military installations would be compromised. Georgia s military installations at Kings Bay Naval Submarine Base, Ft. Stewart Army Air Base and Hunter Army Air Field employ nearly 10,000 civilians and are cornerstone economic operations of our coast, not to mention national security and preparedness. All of these industries are dependent on healthy and thriving marine systems that would be put at jeopardy were oil and gas development allowed to go forward in any form. East Coast states will not benefit from revenue sharing. Many supporters of Atlantic offshore drilling claim revenue benefits from offshore activities. Yet federal law prevents East Coast states from receiving revenue from offshore operations. Congress would have to approve a change to this law an unlikely act considering the President has proposed repealing the current revenue sharing for states on the Gulf of Mexico. A catastrophic event would devastate the East Coast. Should offshore activities are allowed on the East Coast, a spill will occur. At worst, it will result in impacts similar to the devastation of the 2010 Deepwater Horizon Gulf of Mexico Oil spill: - 200 million gallons of oil spilled resulting in 1,100 oiled miles of coast. - $23 billion impact on tourism over 3 years not including seafood or real estate impacts. - Catch rates declined as much as 75% for oystermen and 80% for shrimpers. - 600 confirmed sea turtles and 700 confirmed dolphins were killed likely many more undocumented. - As many as 90,000 response workers and volunteers exposed to toxic cleanup chemicals. Coastal communities are speaking out. Opposition to allowing offshore oil and gas development in the Atlantic Outer Continental Shelf comes from many diverse groups, associations, and elected officials: - 141 cities and counties (including Georgia communities: Savannah, Brunswick, Hinesville, St Marys, Kingsland, Porterdale, Tybee Island) - 10 Governors (FL, NC, SC, WA, NY, NJ, VA, DE, OR, and CA) - Property Owners Groups and Associations - Businesses, large and small - Chambers of Commerce - Fisheries Councils and Associations - Hotel and Restaurant Associations - A full list can be found here: http://usa.oceana.org/seismic-airgun-testing/grassrootsopposition-atlantic-drilling) www.onehundredmiles.org 2
FIGURE A: Undiscovered Technically Discoverable Resources (UTRR) from 2019 2024 National OCS Oil and Gas Leasing Draft Proposed Program (Jan 2018) Source: Figure 5-8: Assessment of UTRR on the OCS, 2016 www.onehundredmiles.org 3
FIGURE B: Relative Environmental Sensitivity of Lower 48 States Planning Areas from 2019 2024 National OCS Oil and Gas Leasing Draft Proposed Program (Jan 2018) Source: Figure 7-20; 2019 2024 National OCS Oil and Gas Leasing Draft Proposed Program www.onehundredmiles.org 4
FIGURE C: Net Economic Value Ranges by Planning Area (ranked by Mid-Price Case) from 2019 2024 National OCS Oil and Gas Leasing Draft Proposed Program (Jan 2018) Source: Figure 5-13: 2019 2024 National OCS Oil and Gas Leasing Draft Proposed Program www.onehundredmiles.org 5