Geography Reference
In-Depth Information
Nowadays, domestic production is mainly concentrated in the West (see
Figure 2.16). Alaska's supply crosses the taiga towards regions in demand, via a
north-south pipeline, before being loaded onto tankers at Valdez on the state's
Pacific shores. California was still the third largest state producer in 2004, but Texas
comes in first place. The location of known proven reserves is roughly the same as
that of today's production. Unlike coal, in 2004, the United States had only 11 years
of proven reserves at the current rate of extraction, with more than half of deposits in
offshore platforms (Gulf of Mexico, Beaufort Sea).
Producing regions experienced an economic crisis, starting in 1985, when they
were hit by the aftershocks of the oil crisis. Exploration slowed down considerably
until 2003, which was the year when crude oil prices began to rebound. The recent
revival of the oil industry was prompted by soaring prices (2003-08). There was talk
of extending exploration and development in northern Alaska and in the eastern Gulf
of Mexico towards Florida - two of the most promising regions. Recent controversy
has led to a shift in attitude however, and the two development projects now face
strong resistance. In Alaska, oil companies covet lands situated on nature reserves
and Native Indian lands. In Florida, residents of the eastern coast are opposed to the
risk of coastal pollution caused by offshore drilling platforms.
Influenced by the interests of the oil industry and increasingly embarrassed by
the country's dependence on imports from the Middle East, the Bush administration
supported the development of domestic production, but scandals (Enron in 2001)
and environmental crises (Hurricane Katrina in 2005) gave rise to growing
opposition from the public. The development of the oil industry has turned into a
political issue. Meanwhile, oil continues to provide 40% of the energy consumed in
the United States. This dependency is even further aggravated by international
issues.
The dilemma is first geopolitical. The military adventure in Iraq was motivated
by an attempt to plunder oil resources, which had been nationalized in 1970. The
profits from the sale of this oil were to fully fund the military expedition, and more.
Unfortunately, this strategy failed completely because the instability in the region
was such that production could not be developed. Meanwhile military costs,
expenses, and the loss of life continued to increase, and the strategic position of the
United States in the region became hopeless.
Since 2006, Americans have finally been convinced that the Iraq situation
presents difficulties which mirror those of the Vietnam War, and they now seek to
disengage without shattering strategic interests and, if possible, without losing face.
