Offshore drilling: Why it makes economic sense to wait

[LuckyTheDog]

From chants of “Drill, Baby, Drill” to outrage over the BP oil spill, offshore drilling has been highly controversial in recent years. Some view it as a vastly underused revenue source, while others see it as a grave environmental threat. In parts of the Gulf of Mexico, drilling continues on a regular basis. In most other regions it is the subject of fierce political debate.

The Obama administration recently reversed its plan to allow drilling off of the mid-Atlantic coast, which it proposed in 2010, suspended after the Deepwater Horizon spill, then floated again in 2015. Critics have attacked the Atlantic decision, arguing that the government is turning its back on much-needed revenue and resources.

But this line of thinking rests on a flawed economic rationale that ignores our ability to revisit decisions in the future. This “now-or-never” fallacy has driven U.S. offshore leasing policy for years. Convincing the Department of the Interior to finally adopt an economically rational approach that values delaying risky decisions required a lengthy advocacy campaign and a federal lawsuit. Offshore leasing decisions can be incredibly complex, and should be informed by balanced economic analysis.

MORE HERE: http://yonside.com/offshore-drilling-makes-economic-sense-wait/