Oil drilling on federal land Research Paper Example | Topics and Well Written Essays - 1500 words

Oil drilling on federal land - Research Paper Example The United States ranks first in natural gas production and third in oil production owing to increased domestic exploration, which poses uncertainty considering that the country holds about 4% of the world natural gas and oil reserves (The Wilderness Society 1). The proponents of onshore exploration justify their actions as those of seeking energy security by making use of the country’s mineral reserves. As such, millions of acres of federal lands have been leased to oil and gas companies accounting for thousands of wells drilled every year. It is for the alarming rate of this endeavor that has attracted significant scrutiny from citizens, stakeholders, and government officials calling for regulation. This follows risks involved in exploration procedures and consequent fallout effects that range from environmental effects to human health. Therefore, it is important to examine the benefits and detriments of onshore drilling with aim of evaluating its sustainability in the long term. Equally important is examination of the resolve that seeks to open federal lands and waters for oil and gas exploration. The move to enhance the use of federal lands and waters to oil and gas exploration has its benefits to the country’s energy economics. ... With this in mind, it is important that a quick resolution to mitigate negative impacts to the economy is formulated and implemented to the letter. Leasing of federal land to oil and gas companies is seen as the best move to ensure economic stability in the country. This gives the oil industry a chance to participate effectively in domestic energy production and limit uncertainty. This is achieved though exploration of the natural resources, which is vital the country’s energy and economic security (Alleman 2). With exploration on federal lands and waters, the country becomes independent and does not rely on the foreign oil market for its energy. The potential of the US oil reserves remains unknown following restrictive federal policy on onshore drilling, and thus limits the chances of gaining energy independence. Such independence would guarantee a low cost of living owing to a significant drop in the cost of energy. Domestic onshore drilling also serves to benefit the societ y with regard to providing employment opportunities in various capacities ranging from primary to tertiary jobs. Drilling premises require specialized technicians, scientists, and laborers in addition to essential supporting services such as health, hospitality, and transport. This is an important aspect of the regional economy as leased federal areas benefiting from exploration activities (SWCA Environmental Consultants 4). This has been demonstrated by the state of affairs in western states where authorization has been approved. With the approval of the resolve to free up federal land, affected regions should expect a surge in the demand for skilled labor. In essence, the expansion of the energy production into

Victors Dilemma Essay Example | Topics and Well Written Essays - 500 words

Victors Dilemma - Essay Example Taking into account the risks involved in the first two options, the probability of earning money by choosing any of the two changes. In the Figure 1, the three options are substantially evaluated in terms of the probability of each and the payouts each option entails. If Victor chooses to sue the motorist, there is an equal chance of him to win or to lose. However, this option will cost him a flat fee of $500. Losing the case will cost him nothing but the $500 fee for suing. The option of threatening to sue automatically costs Victor $100 for the letter. Further decisions will depend on the motorist's reaction. If the motorist offers a settlement offer of $1000, this means that there is a higher chance of him winning the case if he chooses to sue. This is represented by a 60/40 probability in the figure. If the motorist ignores the letter, it implies that Victor's chance of losing the case if he wishes to pursue the case in the court decreases. He may to ignore the case as well. This leads him to doing the third option which is doing nothing. Doing nothing after threatening to sue costs him $100 for the letter. Y et, if he chooses the third option without sending any letter, it would not cost him anything. It even gives him peace, which is valued as $100. Figure 2 shows the estimated value of each option.