There have been a few people saying that the country needs this project because we are in such dire need of oil. Let’s do the math…The Hermosa Beach Oil Drilling Project will represent approximately 0.011% of the total United States oil production over the 34 years of the project. Another way to look at it… More oil was produced in the U.S in 2 days in 2013, than will be produced in the life of this project.
It seems that the U.S. will not even notice if we leave this oil nice and safe, in the ground, where it is now.
…And now the U.S. is now exporting oil.
And… It’s the oil production volume that drives the royalties paid.
These numbers use 2013 actual oil production numbers from the U.S. Energy Information Administration, which is a low number, since oil production is currently increasing in the U.S.
In 2013 the U.S. produced 7.441M barrels of crude oil per day. This number was compared to the “low” oil production levels from the final cost benefit analysis (CBA) of 10.9M total barrels of oil over the life of the 35 year project.
NOTE: The “low” oil production levels were used in the CBA since it has a likelihood of attainment of 90%, which is the most realistic estimate presented in the CBA. Some argue that this “low” estimate is still too high. The “expected” numbers are at 50% likelihood of attainment, and therefore, was not used.