Wisest use of energy?

Sunday’s editorial examines the varying forms of offshore energy production before South Carolina.

The best approaches to energy reforms - the comprehensive packages that U.S. Sen. Lindsey Graham has taken part in crafting - have viewed opening the Atlantic Ocean to oil exploration as a temporary trade-off to ease the path to harder tasks, such as reducing the amount of carbon pollution or increasing our use of renewable energy sources.

Despite the South Carolina legislature’s enthusiasm for it, an evaluation of oil drilling on its own merits shows limited appeal. Estimates from the former Minerals and Management Service suggest that the Atlantic Ocean offers less oil than any other region - the Gulf of Mexico, Alaska or the Pacific Ocean - only about 4 percent of our country’s total available oil.

Of that fraction, 90 percent is north of South Carolina’s waters, leaving only an estimated 330 million barrels of recoverable oil in the South Atlantic region (from here to North Florida). By comparison, the U.S. consumes 20 million barrels a day, meaning South Carolina’s total contribution to national energy independence would be fairly insignificant.

By contrast, the Gulf oil spill has cast the risks of drilling in sharper relief, a worst-case scenario. Consider reports that retail sales were off by 50 percent on Fourth of July weekend in Pensacola, Fla., where that weekend was as surely as important for businesses’ annual bottom line as it is here in Myrtle Beach. Whatever proves to be the ultimate cause of the spill, the disaster is surely be repeatable for any number of other reasons, as accidents happen. And, even without a catastrophe, minor spills are even more likely from routine oil-transportation accidents.

The risks associated with extracting oil from our waters are high, and the benefits seem relatively low. The balance may be different for natural gas, however. While a natural-gas disaster would undeniably be destructive, it’s unlikely that it could wreck our tourism industry as completely as the oil mats did on the Gulf Coast. Further, there is believed to be significantly more natural gas than oil off our coast, suggesting that the benefits of mining it could be greater.

Both oil and natural gas, no matter how much is out there, are finite resources. From a risk and reward standpoint, wind power may have more to offer. While testing of its strength is still ongoing, the offshore wind belt could prove a substantial energy resource. As an additional benefit, the wind industry nationwide is still young, so South Carolina has the opportunity to become a leader in it early. We already have substantial test projects from Santee Cooper, and research and part-production facilities planned at Clemson. Because the strongest, closest wind is off the shore of the Grand Strand, the industry represents a chance at revival for the Georgetown port, which could play a convenient role in servicing offshore wind farms.

Before there is actual energy production from either oil or wind, the actual resources must first be found, and massive permitting processes will precede any actual construction. Each step will take years, but wind may have an edge here, because testing for it has already begun. On the other hand, the technology for retrieval and transportation is much more robust for oil, suggesting its mid-term returns could be faster.

South Carolina may still choose to pursue oil drilling, though we would hope the Gulf’s recent experience would urge our state to apply all caution to it. In the meantime, however, it would appear the comprehensive approach is still the best one - any political capital we pour into the pursuit of an oil industry ought be matched with equal or greater attention to exploring the possible benefits of wind.

Despite the South Carolina legislature’s enthusiasm for it, an evaluation of oil drilling on its own merits shows limited appeal. Estimates from the former Minerals and Management Service suggest that the Atlantic Ocean offers less oil than any other region - the Gulf of Mexico, Alaska or the Pacific Ocean - only about 4 percent of our country’s total available oil.

Of that fraction, 90 percent is north of South Carolina’s waters, leaving only an estimated 330 million barrels of recoverable oil in the South Atlantic region (from here to North Florida). By comparison, the U.S. consumes 20 million barrels a day, meaning South Carolina’s total contribution to national energy independence would be fairly insignificant.

By contrast, the Gulf oil spill has cast the risks of drilling in sharper relief, a worst-case scenario. Consider reports that retail sales were off by 50 percent on Fourth of July weekend in Pensacola, Fla., where that weekend was as surely as important for businesses’ annual bottom line as it is here in Myrtle Beach. Whatever proves to be the ultimate cause of the spill, the disaster is surely be repeatable for any number of other reasons, as accidents happen. And, even without a catastrophe, minor spills are even more likely from routine oil-transportation accidents.

The risks associated with extracting oil from our waters are high, and the benefits seem relatively low. The balance may be different for natural gas, however. While a natural-gas disaster would undeniably be destructive, it’s unlikely that it could wreck our tourism industry as completely as the oil mats did on the Gulf Coast. Further, there is believed to be significantly more natural gas than oil off our coast, suggesting that the benefits of mining it could be greater.

Both oil and natural gas, no matter how much is out there, are finite resources. From a risk and reward standpoint, wind power may have more to offer. While testing of its strength is still ongoing, the offshore wind belt could prove a substantial energy resource. As an additional benefit, the wind industry nationwide is still young, so South Carolina has the opportunity to become a leader in it early. We already have substantial test projects from Santee Cooper, and research and part-production facilities planned at Clemson. Because the strongest, closest wind is off the shore of the Grand Strand, the industry represents a chance at revival for the Georgetown port, which could play a convenient role in servicing offshore wind farms.

Before there is actual energy production from either oil or wind, the actual resources must first be found, and massive permitting processes will precede any actual construction. Each step will take years, but wind may have an edge here, because testing for it has already begun. On the other hand, the technology for retrieval and transportation is much more robust for oil, suggesting its mid-term returns could be faster.

South Carolina may still choose to pursue oil drilling, though we would hope the Gulf’s recent experience would urge our state to apply all caution to it. In the meantime, however, it would appear the comprehensive approach is still the best one - any political capital we pour into the pursuit of an oil industry ought be matched with equal or greater attention to exploring the possible benefits of wind.