senior thesis 2016

US Offshore Energy Policy

United States Offshore Energy Policy Outlook

Tyler W. Roberts, B.A. Global Studies and Maritime Affairs

California State University Maritime Academy

April 2016

UNITED STATES OFFSHORE ENERGY POLICY OUTLOOK 2

Abstract

One the most influential factors determining a nation’s power is the access, availability, and

control over energy resources. For the past several decades, oil and natural gas has been and

continues to be one of the most influential in how the world has been shaped into what it is

today. Power plays between nations have been solely over obtaining petroleum products for

energy. It has shaped made the social and economic advancements of current society. However,

there has also been shifts in the energy industry, such as technological advances in exploration,

extraction, and production, as well as scientific studies of the areas where energy resources are

located; which broaden the potential usage of more diverse energy sources. These studies and

advances in technology have shifted the mindset of the developed nations of the world into

thinking more of how to manage energy more efficiently, using less of the resources available

while getting more out of them, and to have less impact on the environment. The opportunity

and potential of renewable energies has increased through recent decades such as solar, wave,

and wind. Nations in Europe, the US, and some Asian countries such as China have slowly been

making shifts towards renewables being a part of their energy policies. This paper will seek to

cover the current consumption and use of petroleum resources for energy in the US, specifically

those extracted offshore. This paper will cover the importance of government and industry

working together to discover and implement more efficient energy strategies and policies in the

offshore regions, and how imperative it is to US national security. One of the most promising

alternative energy technologies is the harnessing of energy through wind turbines. There are

multiple case studies that will be covered throughout this paper to show examples of the current

and on-going success in other countries, and discuss the potential for the same success in US

offshore regions.


History of United States Energy Policy

The discovery of oil during the 19th century was one the most significant discoveries in

United States history in the conversation of America’s road to becoming a leading world power.

The industrial age, into the 20th century, and to present day has been dominated and powered by

the energy of petroleum, which is primarily the mix use of coal, crude oil, and natural gas. Over

the course of US history, through every war and conflict since World War I, oil and other

petroleum products have been at the heart of American industry; driving US power and influence

all over the world. Military-might is an obvious example of petroleum’s contribution to US

industrial prosperity, however it has also greatly contributed to economic and social standards, as

well as foreign relations. As technology continued to develop and drive advances in modern

society, it became increasingly important for nations to have ample and diverse sources of energy

in order to prosper. In recent decades, the conversation of energy has had to greatly diversify

from using strictly petroleum products; with new studies, scientific knowledge, along with

environmentally incline stakeholders striving for not only more efficient usage, but better

alternative sources of energy for the environment and society. Modern energy policies like those

of the United States have changed throughout their existence, making adjustments for the needs

and interests of multiple stakeholders; all having a say into how to utilize energy to meet current

energy needs, future needs, as well as discussing impacts on the environment.

Importance to US Society and Economy

Petroleum products have been the main contributor to US energy in nearly all major

economically important sectors of the country, such as: electricity, transportation, industrial,

commercial, and residential. According to the US Energy Information Administration (EIA), the

US consumed approximately 6.97 billion barrels of petroleum products, averaging at


approximately 19 million barrels per day in 2014. The vast majority of these petroleum energy

supplies are refined for the needs of transportation. The transportation sector accounts for nearly

three-quarters of the total petroleum consumption in the US, according to a 2014 report by the

EIA. From the 1950’s onward, petroleum fueled the vast majority of transportation in the

US and abroad, including personal automobiles, tractors for agriculture and construction,

commercial trucks, diesel trains, and commercial aircraft.

Importance to US Military

The US military, under the budget of the Department of Defense, is the largest

organizational consumer of petroleum products in the US, and the world. The end of the Cold

War marked a decline in overall energy consumption by the DoD and the US military; however,

since the War on Terrorism it has increased yet again, though not nearly as significantly. The

Department of Defense describes its energy usage as operational energy; “Operational Energy

(OE) is defined in statute as the ‘energy required for training, moving, and sustaining military

forces and weapons platforms for military operations,’ and includes energy used by ships,

aircraft, combat vehicles, and tactical power generators” (Under Secretary of Defense

Acquisition Technology & Logistics, 2016). Fuels for mobile transport makes up approximately

three quarters of the total energy used by the DoD for the past two decades. Approximately 80

percent of this energy is from oil, eleven percent from electricity, and then followed by coal and

natural gas taking up the majority of the last nine percent. However, contrary to what many in

the general public would believe, the military is a small percentage in the total US usage of

petroleum energy products. An Energy Information Administration analysis in 2011 reported

that the DoD used approximately 1.9% of all US petroleum consumption. Though it is a small

percentage, petroleum products are still a significant source for military operations; largely for

http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2924&num=0&edition=prelim


aircraft fuel as well as vessel transport. With such a small portion of the energy pie, the DoD has

little trouble in obtaining resources for its energy needs; however, being the world’s leading

major power and having the largest, most powerful military force, there are geopolitical

influences abroad which have had significant influence US energy resources and its policies.

US Dependence of Foreign Energy

The US was at one time in history the world’s leading exporter of oil. However, after

decades of exploration and development in other regions such as the Middle East and Canada,

the US fell behind in this aspect. This was essentially due to the fact that imports of foreign

energy sources were cheaper, and in much greater supply. The Middle East contains nearly half

of the world’s oil resources, with Saudi Arabia out in front. Saudi Arabia is also one of the head

countries in one of the most influential energy organization in the world of geopolitics of energy:

The Organization of Petroleum Exporting Counties (OPEC). The Organization has

approximately 80% of the world’s proven oil reserves. OPEC consists of Algeria, Angola,

Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and

Venezuela; the majority of these countries are in regions that are seen as unstable or near areas of

constant conflict. The US and the Middle East have had major political and social differences

which have made it hard on foreign relations; and another consequence is the overall US opinion

of many OPEC countries, setting a distasteful tone of labeling their foreign oil differently than

other foreign oil such Canada.

One of the primary motivations for US policy makers to try and push more towards

energy independency, was the time period of the 1970’s oil crisis. OPEC members enforced an

oil embargo on the US during the Arab-Israeli War in 1973, when the US supported and sent

military aid to Israel. The embargo had a large effect on the American economy, and was most


obviously seen with automobile owners at the pumps. In response, the Nixon administration

started an initiative for domestic energy independence called Project Independence, in addition,

Secretary of State Kissinger proposed the creation of the International Energy Agency; both were

to serve to assist in the stabilization of oil prices, thus making US energy supplies more secure.

Energy conservation and increased development throughout the country, which included “the

creation of the Strategic Petroleum Reserve, a national 55-mile-per-hour speed limit on U.S.

highways, and later, President Gerald R. Ford’s administration’s imposition of fuel economy

standards” (Office of the Historian, Bureau of Public Affairs, US Department of State, 2013).

However, stressed relations continued to occur between the US and many OPEC nations,

especially in the Middle East and South America where there has been much instability.

Oil imported from other major producing countries that are not a part of OPEC

are not seen as in the same category of “foreign oil” as supplies from the Middle East due to the

political and social relations. Canada and Latin America (Mexico and Venezuela) are the largest

sources of petroleum products imported by the US; according to a NPR report,

Figure 1: Where the US gets its oil (2012)


"’People have tended to exaggerate how much oil we imported from the Middle East,’ says John

Duffield, an energy expert and professor of political science at Georgia State University. ‘In the

long term, it may look like a historical anomaly that the U.S. became so involved in the Persian

Gulf,’ he adds” (Flintoff, 2012). As of 2014, Canada and Mexico accounted for 46% of US

petroleum imports (Canada 37% and Mexico 9%); Saudi Arabia accounted for 13% and

Venezuela accounted for 9%, respectively. This is seen by US policy makers to be highly more

beneficial for national security reasons, with these sources coming from fairly stable neighbors

that are in cooperation with the US via NATO and NAFTA, security and economic agreements

that helped the three countries work together toward energy cooperation.

In recent decades, the US has also shifted its energy policies to be more domestically

based. According to a 2014 Energy Information Administration report, domestic production

satisfied 84% of total US energy demands the year before. This kind of increase in domestic

production is mainly due to the enhancements in technology and heavy developments such as

fracking (which is the process of drilling into the earth and then using highly pressurized water

with chemicals in order to release natural gas that is trapped inside of rock), overall increase in

efficiency in production of energy resources, and offshore developments in the Gulf of Mexico,

Alaska, and California.

Offshore Energy Resources

Exploration and production for offshore oil and gas began on the immediate continental

shelf in southern California during the late 1800’s, with small rigs and pumps that were limited

to the length of the dock-like platforms they were constructed on. The technology and

development has come a long way since then, expanding to hugely in the Gulf of Mexico and


Alaska, with large drilling platforms that operate far onto the outer continental shelf, even into

deep water (depths greater than 150 meters), far from the sight of land.

Figure 2: Modern offshore structures

States and Regions

Estimates of proven oil and gas resources in the current offshore US production areas are

as follows: Alaska (which includes availability in the Beaufort Sea, Chukchi Sea, and the Cook

Inlet) has 750 leases on approximately 1.4 million acres, with reserve estimates of 5.39 billion

barrels of oil and 15 trillion cubic feet of natural gas; California (which includes the southern

region off Santa Barbara coast) has 79 leases on approximately 400,506 acres, with reserve

estimates of 4.72 billion barrels of oil and 8.22 trillion cubic feet of natural gas; and the Gulf of

Mexico (which includes Texas, Louisiana, Mississippi, Alabama, and parts of Florida regions)

has 7,372 leases on approximately 39 million acres, with reserve estimates of 25.86 billion

barrels of oil and 112.4 trillion cubic feet of natural gas. According to an Infield Systems report

for BP energy, offshore resources account for 33% of all US oil and gas production; that number

has risen over the past decades due to development of offshore drilling capabilities, specifically

those with capacity to go farther offshore into deep water.


Figure 3: Proven Reserves in Alaska, the Gulf, and Pacific (California)

Regulation

Just as any industry, the early offshore energy resource extraction went without the many

safety and environmental regulations that are in place today. Much legislation regarding

standards and regulations for offshore energy came about during the 1970’s, after the oil spill

disaster off the coast of Santa Barbara in 1969. After that event, energy efficiency and

environmental safety became increasingly much more a part of the priorities within legislation of

US energy policies. The federal government increased investment into oil spill regulation and

research. Energy companies found much stricter regulations on acquiring permits for offshore

drilling, especially the coastal regions of Alaska, California, and Florida; environmental concerns

hold much higher priority in different regions and states due to the different stakeholders.

Offshore Energy Management

As oil and gas companies of individual states such as California and Texas continued to

explore and develop offshore drilling and production, there came about an issue with whom had

control over the oil and gas resources, mainly within the tidelands of Texas and Florida. When

they had joined the Union, Texas and Florida had been recognized with more state owned


territory than the three nautical miles seaward that was set into legislation for coastal states under

the Outer Continental Shelf Lands Act (1953). A compromise was made for Texas and Florida to

have individual state control of three marine leagues, or nine nautical miles; however, nearly

every coastal state has a slightly different definition or name of their submerged state-owned

region of lands, tidelands, submerged lands or tidal waters. The Outer Continental Shelf Lands

Act came to be as a consequence of the 1953 US Submerged Lands Act, which set definition of

federal ownership 12 nautical miles seaward from the three nautical miles of state submerged

lands; soon after, the OCSLA set federal jurisdiction and the ability to authorize leases to the

highest biding, and most capable, public energy companies; the OCSLA states that “the Outer

Continental Shelf is a vital national resource reserve held by the Federal Government for the

public, which should be made available for expeditious and orderly development, subject to

environmental safeguards, in a manner which is consistent with the maintenance of competition

and other national needs” (Bureau of Ocean Energy Management, 2016). All of which is under

the Department of the Interior. This federal department had the responsibility of managing the

vast natural resources, as well as cultural resources, of the US. It took charge of the offshore

developments during 1982 when it established the Minerals Management Service, later renamed

Bureau of Ocean Management, Regulation, and Enforcement (BOMRE).

BOEM

In the early 2000’s, there were questions of how legitimized and practical the services of

BOMRE were due to its lack of balanced responsibilities for managing the natural resources

revenue collection, as well as the industrial and economic actions within the outer continental

shelf lands. What occurred in response to this perceived lack of management, primarily seen

through the eyes of the coastal state governments and their energy stakeholders, was a


reorganization of BOMRE into three separate agencies that had clear and defined

responsibilities: The Office of Natural Resources Revenue, “ensuring a fair return to the taxpayer

from offshore royalty and revenue collection and disbursement activities” (Bureau of Ocean

Energy Management , 2016); the Bureau of Ocean Energy Management, and the Bureau of

Safety and Environmental Enforcement; managing the development of offshore activities in the

most environmentally and economically efficient way, while enforcing safety and regulations set

in place. BOEM has effectively promoting independence of offshore energy activities,

scientifically-supported management of the economic development and environmental

protections; all of which to continue to make more efficient the development conventional

offshore resources and marine minerals, and to develop renewable energy proposals and projects.

The bureau’s mission of this kind of balance is achieved through a number key functions that

operate as separate offices, yet still interconnect in order to serve all stakeholders involved in

offshore energy.

Regional Offices

BOEM is essentially divided into four outer continental shelf regions where the Bureau

has lead offices in Alaska, the Atlantic, the Gulf of Mexico, and the Pacific. The Alaskan office,

based in Anchorage, has many responsibilities within the region including the management of

conventional energy with oil and gas, renewable energy and mineral resources, all in the most

economically and environmentally viable method. The Alaskan out continental shelf is the

largest of any coastline in the US, as it includes the Beaufort and Chukchi Seas, the Bering Sea,

Cook Inlet and the Gulf of Alaska. The Pacific office, based in Camarillo, California, includes

the continental shelf of Washington, Oregon, California, as well as Hawaii. The Gulf of

Mexico office, based in New Orleans, is the largest contributor of outer continental shelf energy,


with 97% of all offshore oil and gas production for the US. The primary responsibilities of this

regional office focus on the Conventional Energy program; conducting the leasing for oil and gas

production, exploration and development plans, geological and geophysical analysis and

permitting, environmental analysis, assessment and studies, resource evaluation and coastal

restoration projects.

Office of Strategic Resources

The primary focus of this functional office is to oversee responsibility of individual

assessments made of oil, natural gas, and other mineral resources on and within the outer

continental shelf, handling inventories made on potential claims and developments made by

stakeholders for production projects, and ensures that fair market value of leases is recorded and

put on file for economic evaluation. This process is completed through the Five Year OCS Oil

and Natural Gas Leasing Program. A public stakeholder, usually an energy company, that wants

to get involved in offshore activities must go through BOEM in order to get a lease for however

much planned area is desired to be used for exploration. Before this consent of the federal

government occurs, offshore resource reserves must be proven recoverable and then booked for

the highest bidding, and most capable stakeholder. The stakeholder has to be reasonably certain

that the planned area has recoverable resources using current technology to examine the

geographical, geological and ecological characteristics; while both the individual stakeholders

and the Office of Strategic Resources analyze the pricing of operations, whether it is shallow or

deep water drilling, whether there is distinct interest in oil or gas, as well as the comparison of

the potential benefits of oil and/or gas development, and the potential environmental risks that go

along with such developments. Leases have to be considered in terms of location and the

location’s respect to the development activity and the market needs at the time. Location of


leases can also determine the different goals and policies of different coastal states. For example,

there are far more sensitive environmental and cultural protection policies in Alaska than there

are in Louisiana. However, regardless of location, by federal law under the responsibility of the

Office of Strategic Resources there is continuously environmental studies and potential impact

analysis for those seeking oil and gas leases that are prepared for a Five Year Program.

Office of Environmental Programs

The primary focus of BOEM’s environmental programs is rather self-explanatory,

however, it is a requirement of the Secretary of the Interior to carry out scientific studies,

obtaining information that monitors the human, marine, and coastal environments, and this

information is then used to create sound, legal decisions regarding offshore leases. Scientific

reports on the environment include a variety of studies such as biology, physical oceanography,

meteorology, economics and social science of different regions, and studies covering the

conceivable risks of oil pollution in the physical and human environments. Environmental

analysis provides principal information for many levels of decision makers to be informed of

potential benefits and costs of outer continental shelf development activities. Environmental

protection policies must be carefully drawn-up and put into compliance with the laws and

regulations in place. BOEM’s environmental programs comply with other federal legislation

such as the National Environmental Policy Act, the Marine Mammal Protection Act, the Clean

Air Act, and the Clean Water Act.

Renewable Energy

According to the Bureau of Ocean Energy Management, President Barrack Obama and

Secretary of the Interior Ken Salazar announced finalizations of the Outer Continental Shelf

(OCS) Renewable Energy Program in 2009. The regulations within the framework of this


program would give responsibility to BOEM for issuing leases, easements and rights-of-way for

OCS activities that support production and transmission of energy from sources other than

conventional energy sources such as fossil fuels. Development of renewable energy in a general

sense is a relatively new focus for the US federal government. The industrial effectiveness of

conventional energy sources such the big three, oil, natural gas, and coal, have dominated US

interests and practices for over a century. It has only begun to change in the last several decades,

when significant scientific research was made and accepted that conventional sources of energy

were both finite and not sustainable for society or the environment, and when legitimate

technological advances proved to be economically efficient enough for government investment.

The 1970’s was a time of great social advancement in regards to being more aware of the

environmental impacts of industrial practices on all levels: extraction, production, distribution,

consumption, and disposal. The majority of these levels became increasingly viewed as

unsustainable practices, ones that were taking more resources than giving back or recycling these

resources and products for future usage. As more research was done, along with the

development of innovative technologies, there was increased awareness of global climate

change, and habitat destruction, and interest in alternative energy sources; ones that would be

both beneficial to people’s health and the environment.

Current technologies have increasingly been proven to be effective and efficient enough

to provide energy through the use of hydroelectric dams capturing the power of rivers, solar

panels capturing the sun’s light energy, geothermal power plants tapping into steam and hot

water underground, and wind turbines are some of the most invested developments for

alternative energy. In a report by CNN, Eoghan Macguire stated that “renewables accounted for

44% of all new energy generation capacity added last year, up from 34% in 2010 and just 10.3%


back in 2004” (Macguire, 2012). Europe as a whole has had the largest annual investment in

renewable energy with approximately $67.1 billion in 2008; the US had invested the second most

with approximately $37.7 billion, and China had invested the third most that year with

approximately $24.3 billion. China overtook the US in overall annual investment in 2009 with

$37.4 billion, compared to the US annual investment of $22.5 billion. However, as a global

trend, the investments in technologies and implementation of renewable energies grew

substantially during the 2000’s and has continued to increase throughout the recent decade.

Experts have contributed this increased investment to the increase costs of fossil fuels,

realization that conventional energy sources are finite resources, and the focus of addressing

climate change with pollution and emission reduction policies and energy efficiency policies. As

technology has evolved, there has been more incentive to shift investments and policies toward

alternative energy with more efficiency and more economic return. Organizations such as the

Environmental Protection Agency have developed incentive projects and programs such as the

Green Power Partnership which provides expert advice, tools and resources, credibility, as well

as publicity and recognition for utilizing green energy technologies and resources.

Figure 4: Growth of venture capital and private equity investment in renewables companies over the last decade.


Wind Energy

The most successful in regards to investment and efficiency has been wind turbines.

There are many government organizations, non-government organizations (NGOs), and private

sector stakeholders who have committed funding as well as programs that are increasing research

and development of wind energy technology. The Department of Energy (DOE) is currently one

of the leading players with its Wind Program, working with the industry in order to accelerate

technological developments for performance and efficiency, assist in siting locations for wind

farm construction, all while attempting to reduce initial cost and reduce other market barriers that

come with alternative energy developments. The American Wind Energy Association (AWEA)

is an example of a NGO leading in wind energy; it is a non-profit organization which serves as

the national trade association for the US wind industry. Its program consists of over 1,000

members that bring different contributions to clean electricity to consumers; contributions such

as developers, manufacturers, utilities and researchers. At the national level, the AWEA

cooperates with regional energy organizations such as: Renewable Northwest Project, Center for

Energy Efficiency & Renewable Technologies and California Wind Energy Association,

Interwest Energy Alliance, Wind on the Wires, The Wind Coalition, Mid-Atlantic Renewable

Energy Coalition, Alliance for Clean Energy New York, and RENEW New England.

Organizations such as these coordinate and work together as wind industry companies,

environmental advocates, and representatives from other renewable industries. Recent energy

tax credits from the federal government’s evolving energy policy in the last few decades have

helped create incentives and opportunities for the wind industry to take the lead in renewable

energy developments, and the industry has expanded exponentially.


Wind technology basics currently consist of tall turbines with a horizontal axis,

constructed with either a set of two, or more commonly, three blades. The top of the turbine (the

greater the height of the turbine, the greater advantage of harnessing the wind) can adjust to the

proximity of the direction of the wind, and blades are angled so that a pocket of low-pressure air

forms on the down side of the blade, creating lift. The force on the top side of the blades is

called drag, and with these two forces working together it causes the blades to rotate like a

propeller. This in itself does not generate electricity; as the blades of the turbine rotate, a rotor

shaft on the inside spins a series of gears which makes enough revolutions for the generator to

have electricity output. This electricity flows down and out of the turbine through power cables

where it is then transferred to a grid. The other, less commonly used, wind turbine has a vertical

axis, and is constructed with a structural design similar to an egg-beater. The models of the

vertical-axis turbines up-to-date are not as efficient or reliable as the taller, horizontal-axis

turbines more widely used; and are the focus of development and advancement.

Wind energy and wind farms are traditionally developed and constructed in areas that

have very little urban development, for example land that is used for grazing animals.

Development of wind projects are very similar to any energy resource project; companies

explore regions of land such as valleys and flat plains where there is the strongest wind resource,

and assess other economic factors of the site such as access to power grids and the ease of

distribution to the buyer or public. The site then undergoes leasing permits; the lease must be

granted through the Department of the Interior’s Bureau of Land Management; which also works

closely with the Bureau of Indian Affairs, the U.S. Fish and Wildlife Service, the National Park

Service, and the Department of Defense. The invested company seeks out contracts from finance

markets in order to pay for the lease, which is typically 20 to 30 years depending on the resource


potential and location, and may then contact a specialized company to construct the wind

turbines for the project.

The electricity output of wind turbines is measured in units of kilowatts (kW) and

megawatts (MW). The first wind turbines that were commercially used in the US were

developed in the 1980’s and 1990’s, and these were small in scale and were not very energy

productive, only generating a few hundred kilowatts. It was not until the early 2000’s when there

was the technological capacity of turbines to produce megawatts of electricity; to put this

measurement of energy into perspective, 1 megawatt can power 1,000 homes according to the

Consumer Energy Center. The modern wind farms developed in the US use turbines that are 80

meters in height, and that have an average capacity of 1.5 MW to 2.5 MW. There are numerous

regions throughout 39 states where there are wind farms, and 17 states which currently have

significant development of wind energy with total energy output that ranges from 1,000

megawatts to 18,000 megawatts; Texas currently has the most wind turbine energy with an

approximate power capacity of 17,713 MW, California follows with an approximate power

capacity of 6,108 MW, and then Iowa has the third most wind energy power in the country with

an approximate capacity of 6,212 MW. The total installed wind capacity in the US is

approximately 65.9 gigawatts (GW), which is second to China with approximately 114.6 GW.

Throughout the past two decades there has been the most considerable expansion of wind

development in the US. Research and technology has propelled the wind industry globally since

the 1980’s into present day; turbine generators growing in power capacity from just 50 kW to

5,000 kW (5 MW), rotor blade diameters from just 15 meters to 126 meters, and the global

installed wind power capacity has increased from 100 MW to over 194 GW. This is mainly due

to the advancements in technology which has both increased the power capacity of wind turbines


and has lowered the initial costs of initiating wind energy projects, making the industry more

attractive to those wanting to contribute to the green energy movement that seeks to lower

emissions and improve air quality. The wind industry in the US is creating an increasingly

profitable and competitive market where both the government and industry are becoming

increasingly committed to and are investing heavily into as far as renewable energy.

Offshore Renewable Energy

The US currently may be second in global capacity for conventional wind energy,

however lags in development and investment in the area of offshore wind energy. Currently the

US does not have any operational offshore wind energy, however, there is significant focus from

federal agencies and industry organizations that consist of planning and developing offshore

wind projects along with policy proposals that would expand US renewable energy onto the

outer continental shelf and into its ocean waters. The ocean is already a vital source of energy

for the US, as discussed before with conventional energy resources from the Gulf of Mexico and

off the north coast of Alaska, however there has been serious discussions in the past few decades

about the potential for offshore renewable technologies such as hydrokinetic from ocean wave

and ocean current, offshore solar, and offshore wind.

Waves and Currents

Wave technology interacts with energy generated at the surface of the ocean, capturing

the physical motion of the waves, tides, and currents as they come in contact with the generator.

The most promising developments have been led by the Office of Energy Efficiency &

Renewable Energy’s marine and hydrokinetic energy research and development (R&D)

programs. The primary focuses of these R&D programs are development in technology,

acceleration and deployment to market, and to make assessments and to characterize the


resource. Technology development of capturing ocean wave, tidal, and current energies is broad,

with a lot of possibilities; however, there are four applications that hold the most potential for

market development. Terminator technology is an on-shore or near-shore concept where the

device is set perpendicular to the direction of the waves. The oscillating water column flows in

and out of a chamber, or up and down in the chamber, causing air to work a piston-like device

inside which generates electricity. Depending on the terminator dimensions and the location’s

wave characteristics, these devices can have a capacity range of 500 kW to 2 MW of power.

Attenuator technology is an offshore concept made up of long, floating multi-segment devices

that are set parallel to the direction of the waves. The fluctuating distances between the waves,

or the wavelength, causes the segments of the device to move hydraulic pumps inside which

generates electricity. This electricity flows through a transformer cable that which is connected

to other attenuators and is transferred to shore. Point absorber technology acts as a floating buoy

within a cylinder that utilizes the rising and falling of the waves to pump the hydraulics inside to

convert into electricity. Overtopping device technology incorporates floating structures with

reservoirs that fill up with water from incoming waves, as a hydroelectric dam acts in a sense,

the intake and release of water turns hydro turbines which generates electricity. Wave energy

devices have potential for development in fairly limited regions of the world that have abundant

wave power resource. As for the US, the regions of most potential for abundant wave power is

primarily along the northwest coasts, with other wave energy research being conducted for the

California current, the Gulf Stream, and the Florida current.

Solar

Offshore solar energy is still in the developing idea phases within scientific communities,

however there are many conventional solar technologies which have been seriously discussed


and considered for offshore development. The concept of harnessing the sun’s energy via the

ocean is very conceivable; the ocean takes up approximately 70 percent of the earth’s surface,

and absorbs a great amount of the sun’s energy, approximately 80 percent absorbed and the other

20 percent gets reflected. And so, the ideal concept of taking solar technology offshore can be

seen as very beneficial in generating energy. Current models of solar energy that could be

suitable for offshore use include concentrating solar power and photonic technology.

Concentrating solar power plants utilize mirrors to focus high-temperature heat from the sun’s

energy, which then flows through a generator. Large areas of land are needed to be able to

capture the sun’s energy to convert it into heat and electricity using this technology. There are

three techniques to concentrating solar power: trough systems have large, curve-shaped mirrors

and reflectors that have pipes running through their center filled with oil. The oil heats to boil

water which then generates steam to power turbines. Central receiver systems use many flat

mirrors and reflectors to follow the sun across the sky, directing its heat to a central tower. Fluid

is heated to extreme temperatures which boils water to generate steam. Dish/engine systems use

a series of large mirrors and reflectors to focus the sun’s energy to an attached receiver with an

engine that contains gases such as hydrogen or helium inside. The gases increase in heat,

expanding inside the engine which moves turbines to generate power. Solar photonic technology

uses similar technology as modern solar panels that are seen increasingly in everyday use;

absorbing sunlight’s photons and directly converting them into electricity. Both solar technology

would be difficult to develop within the offshore ocean environment.

Wind

The most researched and developed offshore renewable technology in the world has been

offshore wind energy by far. According to BOEM, “The first offshore wind project was installed


off the coast of Denmark in 1991. Since that time, commercial-scale offshore wind facilities

have been operating in shallow waters around the world, mostly in Europe. With the U.S.

Department of the Interior’s “Smart from the Start” initiative, wind power projects will soon be

built offshore the United States. Newer turbine and foundation technologies are being developed

so that wind power projects can be built in deeper waters further offshore” (Bureau of Ocean

Energy Management, 2015). Offshore wind energy has the same basic concepts as onshore wind

energy, taking advantage of the wind currents using large turbines with propeller-like blades that

generate electricity. Only with offshore wind turbines, the current technology of the structures

allows for monopole foundations that are imbedded into the sea floor at a depth up to

approximately 50 meters, however there are development efforts that potentially allow for deep

water wind turbines that operate on floating structures such as those used for deep water oil

platforms; which have been proven up to approximately 450 meters. The turbines are

constructed and aligned in rows that are connected to a uniform power cable grid. This is how

the electricity generated by the turbines is transmitted to shore where the power can be stored

and transferred to a desired destination.

Figure 5: Base Structure Development with monopod, tripod, and suspended


The US federal government and its numerous agencies, along with ocean and energy

scientists and professionals, have carried out a significant amount of research on the potential for

wind energy infrastructure development on the outer continental shelf on both the west and east

coasts, as well as the Great Lakes. The continuing research on offshore wind energy has pointed

to great abundance in this energy resource, one that is significantly more steady than on land and

one that would be significantly closer the US population centers on the coasts. There are

numerous benefits in developing offshore wind energy in the US, both from an environmental

and energy security standpoint. There are also many arguments against offshore energy, and

arguments to develop new conventional offshore energy infrastructure projects. Scientific

studies and research continue to be carried out for both arguments of offshore development,

primarily in three regions: The Pacific, the Atlantic, and the Great Lakes. Regardless, the US

currently lags behind major world powers in diversified offshore energy development, especially

when observing and assessing the renewable energy projects in northern European waters.

European Offshore Wind Development

Northern Europe nations such as Germany, the Netherlands, and the UK are leading the

world in offshore wind energy, both in offshore wind farm development and investment in

technology and research. The European Wind Energy Association (EWEA), a non-government

organization, is the leading network for wind energy in the world with over 600 stakeholder

members from over 50 countries, and it is a primary factor as to why the European offshore wind

industry has been so successful and continues to grow. The EWEA was founded in Stockholm in

1982, when agricultural manufacturers had assessed the wind potential in California, inspiring a

new industry in Europe. For three decades, the EWEA has grown substantially alongside the

wind energy industry. As of 2015, Europe’s total installed offshore wind power capacity


measured at 11,027 megawatts, or 11.03 gigawatts; which had doubled in capacity from the

previous year. Comparatively, China is the leader in Asia with approximately 720 megawatts of

installed offshore wind capacity, followed by Japan and South Korea. The European nations

with the most investment and growth were Germany with 2,282 megawatts, the United Kingdom

with 556 megawatts, and the Netherlands with 180 megawatts. Other nations with significant

offshore wind development include Belgium, Finland, Ireland, and Sweden. Chief Executive

Officer of the European Wind Energy Association, Giles Dickson had stated, “New capacity

additions will be lower in 2016 than 2015 though should then rebound, and we can expect to

have over 20GW offshore wind in Europe by 2020. The real question is what happens after 2020.

The industry is making real progress in reducing costs. But we need Governments to give us a

clear vision of the volumes they envisage long term and the regulatory framework they'll apply

to drive the necessary investments. Active collaboration between governments is also key: to

align their efforts to develop the sector in the North Sea and Baltic” (European Wind Energy

Association, 2016). Europe currently accounts for 90 percent of the world’s offshore wind

capacity and, as stated previously, has ambitions to greatly increase its renewable power capacity

by 2020 as well as into the long-term future.

Germany

Germany is one of the most recent European nations to invest and develop offshore wind

energy, and is currently observing the most significant growth in the industry. The first offshore

wind turbines were put into German waters in 2010, an addition to renewable energy projects

that are part of the policy initiative of Germany’s Renewable Energy Act. A revision of this

policy in 2008 challenged the government to have renewables account for 20 percent of total


electricity needs by 2020, and development in wind energy has been a huge contributor to that

goal. Germany’s continental shelf, which legally grants 12 nautical miles for its Exclusive

Economic Zone (EEZ), allows for development in the North Sea and a portion of area for

development in the Baltic Sea. The German Offshore Wind Energy Foundation, founded in 2005

through the support of the Environmental Ministry, initiated huge development projects.

Currently there are 14 constructed and operational wind farms, with three more projects under

construction. In the Baltic Sea, German offshore wind farms such as EnBW 2 have turbines that

are 3.6 megawatts average capacity with rotor blade diameter of 120 meters, sitting at 78 meters

in height, with water depth up to 35 meters. The EnBW 2 wind farm has a total of 80 turbine

structures installed, covering an area of approximately 30 square kilometers, and has a total

power capacity of 288 megawatts. For the near future, there are nine new wind farms for the

Baltic awaiting approval for construction. These farms would consist of approximately 530

turbines with a power capacity of 2.3 gigawatts. The turbine technology that the North Sea wind

farms have been implementing, BARD Offshore I for example which was constructed in 2010,

are 5 megawatts average capacity turbines with rotor blade diameter of 122 meters, sitting at 90

meters in height, with an average water depth of 40 meters. The BARD wind farm has 80

turbine structures installed, covering an area of approximately 60 square kilometers, and has a

total power capacity of 400 megawatts. In addition, the North Sea has 50 approval proceedings

for new wind farms with a planned total of 5,700 turbines with the power capacity of 28

gigawatts. The German government, the offshore wind industry, and its thousands of

stakeholders collaborate for effective marine spatial planning with expertise in wind turbine

manufacturing, leasing and financing, policy making, and other concepts that go into offshore

wind energy infrastructure. This collaboration has given great opportunity in diversification in


energy for Germany to take advantage of, and has become one of Europe’s fastest growing

offshore wind industry.

The United Kingdom

The UK’s first offshore wind farm started operation in 2000, in the east England harbor

of Blyth, which only had 2 turbines with a combined power capacity of 4 megawatts. Since then,

the UK has become the world leader of offshore energy development. According to the

Renewable UK organization, there are currently 29 offshore wind projects in UK waters; which

includes the English Channel, the Irish Sea, and the North Sea. These projects consist of

approximately 1,465 turbines with a combined power capacity of 5,098 megawatts. The wind

industry makes of approximately 5 percent of the UK’s total electricity demands, and further

wind development policy seeks to increase this to 10 percent by the year 2020. Primary

stakeholders from government departments and the renewable energy industry are cooperating

together in order to promote and expand offshore wind technology, manufacturing, and

infrastructure development. The UK Trade & Investment is the leading department in promoting

offshore investments to UK-based energy companies, along with assisting in integrating these

investors into the UK energy supply chain. The Secretary of State for Energy and Climate

Change established the Offshore Wind Energy Programme Board, which assists in cost reduction

and promotion in competition for the long-term development with all stakeholders in the

industry. The UK government also created a publicly funded Green Investment Bank,

accelerating the renewable industry projects’ integration into the private sector and to build up

green economy. An act of Parliament created an independent commercial business called the

Crown Estate, which manages the sea bed for the most efficient and sustainable usage by all

stakeholders. The UK’s leading renewable energy trade association, RenewableUK, is also the


primary source for information on research projects, conferences and exhibitions, as well as

overall promotion of marine renewable energies, increasingly so with wind. With the increased

investment and cooperation from its government and industry stakeholders, there has been

further development of its offshore wind industry, along with other renewable technologies, and

the UK has not only become the leader in offshore energy but has also significantly decreased its

carbon emissions from conventional electricity resources such as coal and natural gas.

Denmark

The offshore wind industry literally took off in 1991 when the world’s first operational

wind farm was developed in Vindeby, southern waters of Denmark. The wind farm consisted of

eleven 450 kilowatts turbines with a combined power capacity of approximately 5 megawatts.

This was a huge stepping stone for Denmark, who had been a net importer of foreign energy

sources, and it also proved over a 20-year time span to be roughly 20 percent more efficient than

a comparable land-based wind farm. Denmark has since then been a world leader in the offshore

wind industry in all aspects; with hundreds of companies and stakeholders covering every

characteristic of the supply chain, from offshore wind turbine producers, developers of offshore

wind farms to special vessels for offshore installation, transport, maintenance and service and

manufacturers of components and parts for the offshore technology and infrastructure.

Currently, Denmark’s wind energy accounts for approximately 40 percent of its total energy

supply. With policy implementations such as its 2012 Energy Act, Denmark hopes to be

completely fossil-fuel free by the year 2050, and offshore wind is already a huge contributor to

this renewable energy goal. At the end of 2014, offshore wind accounted for approximately

1,271 megawatts of its 4,890 megawatts total wind capacity. Denmark also has the one of the

fastest and most integrated system of approving licenses and development plans of any European


nation. The Danish Energy Authority is the central agency for all stakeholders involved in

offshore projects; and coordinates closely with numerous other agencies such as the Agency for

Spatial and Environmental Planning, the Danish Maritime Authority, the Danish Maritime Safety

Administration, the Danish Civil Aviation Administration, the Heritage Agency of Denmark, and

the Danish Defense. By working through the one body of the Danish Energy Authority, all

stakeholders can come to consultation and be provided with a quick and cost-efficient process for

the investment and development of offshore wind turbines. This kind of success in Denmark

sparked a competitive offshore wind industry, leading the way for other countries, such as the

UK, to take the lead in offshore development. Although the investment and development

numbers of other northern European nations have surpassed Denmark, it still has the world’s

leading wind technology producers.

Figure 6: Current Global Capacity

Factors Against Offshore Wind Development

Technological

There are numerous challenges when it comes to offshore wind energy development. The

initial instillation cost of an industrial sized turbines for a wind farm is quite substantial when


compared to development of conventional energy infrastructure. When the turbines are taken

offshore, the upfront capital costs increase even further presenting additional technologies

needed in place for the conditions of the offshore environment. The ocean’s physical conditions

present challenges in constructing and maintaining of any and all kinds of structures. The

structures must have a stable foundation which goes beneath the sea floor in order to anchor

down. These offshore wind foundations cost almost as much as the wind turbine rotor and

blades. There are also structural maintenance costs, the blades must endure offshore conditions

and be able to operate for several years or decades. The cost of getting maintenance and

construction crews out to the offshore farms in greatly in part due to the sheer size of the

individual parts of the wind turbine; decommissioning costs at the end of a wind turbine’s life

cycle is another one. Ports may have to expand or develop means to handle large components

for wind turbines as well as vessels that are capable of transportation and construction. Farm-to-

grid management costs, there must be additional infrastructure put into place for the electric

power to get back to shore and to the major hubs; the primary issue is the transmission capacity

with concern over too much grid traffic flow.

Although the turbines rely on wind to generate power, the ocean is very volatile and can

be unpredictable at times. The hydrodynamics of the ocean are a technical issue for any kind of

support structure. Weather conditions may promote surges in too strong of winds and large

waves, causing turbine operations to halt, or even cause damage; this is of concern when turbines

need maintenance, going hand-in-hand with the expense of transporting crews to go out to the

offshore farm to operate on the turbines in fair weather. The East Coast of the US in particular is

known to have extreme weather at times during the winter with ice and snow storms, and even

during the warmer months with hurricane season.


Environmental

No matter what type of energy infrastructure that is developed and put into a specific

location, even renewable energy infrastructures, low environmental impact is still not zero

environmental impact. The disturbance of ecosystems and wildlife have been of concern. On-

shore wind turbines have taken criticism of disturbing bird and bat populations; however, recent

studies of wind turbines effecting bird and bat populations has disregarded the majority of these

claims, stating that migratory birds and bats develop memory of obstacles and find new flight

paths. Offshore wind farm developers and stakeholders need to take into account the marine

environment and the marine life in the regions of proposed development. Assessing the sea bed

and the water column is essential for developers to make the soundest and most justified

decisions in constructing offshore infrastructure; there are migratory routes for fish species and

other marine species that could be altered and effected by the electromagnetic fields of the

underwater cables which transmit the electricity to shore. This issue may however be beneficial,

if commercial fishing is prohibited in and around the wind farm, it may protect fish species to a

certain extent. Social acceptance of offshore wind is of concern in certain coastal communities

which do not want their seaside views disturbed by wind turbines; this concern is assured not

major due to the fact that the majority of offshore wind farms would be many nautical miles from

shore, to take advantage of the more abundant wind resources. The overall concerns surrounding

the potential environmental impacts of developing offshore wind farms can be observed as

minimal when compared to other offshore energy operations.

Oil and Gas

There is also an argument that has been made by stakeholders who hold an interest in

exploring and extracting oil and gas resources from the Atlantic. In the past, there have been oil


and gas leases in the Atlantic in the 1970’s and early 1980’s, however were commercially

abandoned. Presently, there are no offshore oil or gas developments in the Atlantic, however

there have been proposals due to updated assessment of the petroleum resources in the outer

continental shelf region. According to a 2014 BOEM assessment, the Atlantic continental shelf

contains approximately 4.72 billion barrels of technically recoverable crude oil and 37.51 trillion

cubic feet of technically recoverable natural gas (BOEM, 2014). This is substantially less than

what is currently in the Gulf of Mexico and in Alaska, however it is enough oil to be in

conversation of developing offshore energy in the Atlantic. Any and all offshore oil and gas

developments that would take place in the Atlantic would be administered through the Gulf of

Mexico Region under BOEM.

United States Offshore Wind Development

In a survey conducted by the Department of Energy (DOE), the US has offshore wind

potential in three major regions which include the Great Lakes off the coast of Michigan, the

Pacific stretching from the Washington coast down to the southern California coast, and the

Atlantic stretching from the New England coast down to the South Carolina coast (Hawaii has

offshore wind potential, however does not have other ideal physical conditions and will not be

covered in this essay). Along with many scientific surveys such as this one, the DOE and other

agencies have put forth initiatives to promote investments and developments into offshore

renewable energies. Government-based initiatives for renewable energies, in this case offshore

wind, have the primary goals of promoting the reduction of greenhouse gas emissions, the

diversification of energy resources, as well as providing a cost-competitive market for electricity,

and provoking sectors of the economy by investing in infrastructure and by creating specialized

jobs. The DOE Wind Program of 2011 started the process of achieving these goals with the


partnership of the Department of the Interior, primarily BOEM. Together, these departments

have analyzed and reevaluated the Wind Program to develop new strategies for reducing the cost

of offshore wind energy and the associated timelines for development. There are still many

questions regarding offshore wind energy and the challenges it faces in the US, primarily due to

the lack of data about the environmental and financial impacts of offshore wind turbines in US

waters. Another question is focused around the somewhat opposing potential of offshore oil and

gas energy development. This uncertainty is currently being addressed through research and

development projects that attempt to advance turbine technology, improve critical information

needed for evaluation of wind resources in offshore regions, and reducing market barriers. There

are a number of projects that are currently showing more than just potential in numerous offshore

regions of the US, as well as some planning and leasing processes underway through BOEM.

However, there has been enough research to gather data that shows the potential wind

resources for the US. In a DOE report in 2008, it was estimated that wind could satisfy

approximately 20 percent of the nation’s energy needs. Along with this report, it was estimated

that offshore wind could supply approximately 54 gigawatts of electricity, if all available marine

real state were to be developed. Since the early 2000’s, the DOE and the National Renewable

Energy Laboratory (NREL) have been developing increasingly up-to-date offshore wind

resource maps along the east and west coasts, and the Great Lakes. One major argument being

made by wind development researchers is how much more there is to gain from wind

infrastructure off the US coast lines, rather than continuing to develop the onshore wind

resources. There is a substantial amount of wind in the Midwest region of the country, where

there is not much urban development and there is a large amount of land. The issue, however, is

that the infrastructure needed to connect this wind energy to the grid and to the main hubs would


be enormously challenging. To better serve to needs of the country’s population, it would be

much more ideal to develop infrastructure along the coasts, where the main energy hubs and the

majority of the US population are located.

The majority of the US potential for offshore wind is located in deep water, more than 40

meters and up to 80-plus meters; the majority of foundation technologies for offshore turbines

are currently at capabilities of more shallow water of 0 to 30 meters with monopole and gravity

foundations. Transitional depths are considered to be 30 to 60 meters, and offshore wind

turbines have utilized tripods, jackets, and truss-type foundations. Deep water depths are those

greater than 60 meters, and turbine foundations are not currently developed for deep water

operation. However, as stated previously, there have been many advancements in offshore

platform and foundation technologies; it is clearly observed in northern Europe with their

offshore wind farms. Deep water offshore wind turbines will need to continue to advance in

technology toward more tripod foundations and floating structures with suspension anchor

systems if the US wants to obtain the full offshore wind potential. And this kind of technology

development being observed in the major European nations, as well as the US, with current and

on-going projects in nearly all of the coastal states. There are also over 55 wind research and

development projects nation-wide including wind plant system design, models to characterize

hurricane load cases and other simulations, assessment and analysis of offshore effects to

turbines and the environment, market acceleration, and offshore demonstrations.


Figure 7: US Wind Resource Potential

The Pacific

The Pacific region includes the states of California, Oregon, and Washington. All three

states have offshore wind resources, however the majority is along the Californian coast, and

primarily in deep water regions of 60-plus meters in depth. According to research reports by the

National Renewable Energy Laboratory (NREL) and BOEM, the highest offshore wind potential

was calculated using measurements at “90 meters” above the water, with measurements of

different wind speeds (meters per second) which depended on state and region, measurements at

three “depth” categories of 0-30 meters, 30-60 meters, and greater than 60 meters, and

measurements at three “distance from shore” categories of 0-3 nautical miles, 3-12 nautical

miles, and 12-50 nautical miles; and for each measurement of “depth” and “distance from shore”,

there was a calculated estimate of gigawatts of wind energy that could be generated. The

greatest offshore wind potential region for California was calculated to be 98.1 gigawatts of wind

energy in an area of 19,616.1 square kilometers; at 12-50 nautical miles from shore, at depths

greater than 60 meters, at wind speeds between 7.5 and 8 meters per second; with a total capacity

potential of 488 gigawatts. The greatest offshore wind potential region for Oregon was

calculated to be 58.2 gigawatts of wind energy in an area of 11,640.3 square kilometers; at 12-50


nautical miles from shore, at depths greater than 60 meters, at wind speeds between 8.5 and 9

meters per second; with total capacity potential of 219.4 gigawatts. The greatest offshore wind

potential region for Washington was calculated to be 82.6 gigawatts of wind energy in an area of

16,514.8 square kilometers; with the majority at 12-50 nautical miles from shore, at depths

greater than 60 meters, at wind speeds between 8 and 8.5 meters per second; with a total capacity

potential of 122.3 GW (Schwartz, Heimiller, Haymes, & Musial, 2010) (all numerical data in the

above paragraph are from a single source).

With this kind of data, along with other analysis from BOEM and NREL, the west coast

of the US holds the most abundant wind resources. There is one West Coast utility-scaled

project called WindFloat Pacific in Coos Bay, Oregon. This offshore wind turbine project is on-

going under Principle Power Incorporated, which was granted a demonstration project lease of

15 square miles, with 30 megawatts of capacity. The issue for going forward with further

offshore development, however, is that the Pacific region’s outer continental shelf is short and

drops off into deep water fairly quickly. This would present a challenge to offshore wind

development with the majority of turbine technology currently limited to shallower water depths.

The Great Lakes

The Great Lakes region, where there are offshore developments ongoing, includes

Illinois, Michigan, Minnesota, New York, and Pennsylvania. Michigan is the only state with

significant offshore wind resources, with the remaining states having minimal resources off their

state shores. The greatest offshore wind potential region in Michigan was calculated by the

NREL and BOEM to be 114.2 gigawatts of wind energy in an area of 22,834.5 square

kilometers; at 12-50 nautical miles from shore, at depths greater than 60 meters, at wind speeds

between 8.5 and 9 meters per second; with a total capacity potential of 483.2 gigawatts


(Schwartz, Heimiller, Haymes, & Musial, 2010). Michigan, along with the other Great Lake

bordering states, is a part of an agreement called the Great Lakes Offshore Wind Energy

Consortium, which the purpose of this is to ensure efficient, expeditious, orderly and responsible

review of current and future proposed wind projects in state waters. This agreement between the

states and the federal government bodies involved will provide a foundation for a clean energy

economy in the region. According to a Great Lakes Offshore Wind Energy Consortium report,

the total offshore wind potential is approximately 700 gigawatts, representing approximately

one-fifth of the total offshore wind potential in the US.

The challenges for Great Lakes wind development revolve around economic support

from the government. Federal government commitment and support via grants and subsidies are

essential factors for major offshore wind projects, and projects like those proposed by the Lake

Eerie Energy Development Company (LEEDC) which had planning for 6 offshore turbines to be

constructed. In 2012, the LEEDC was in a leasing bid for a $47 million grant from the

Department of Energy, however the money was granted to offshore projects on the east and west

coasts. It was a setback for wind development in the Great Lakes, however there are many

stakeholders that have interest and are willing to commit time and effort for proposed projects.

The Atlantic

The Atlantic coast region, where there are offshore developments being planned or

ongoing, includes eleven states: Delaware, Florida, New Jersey, Maryland, Massachusetts, New

Jersey, New York, North Carolina, Rode Island, South Carolina, and Virginia. Although the wind

speeds are not as high as those on the Pacific region, the Atlantic has a continental slope that is

long and it has a very gradual slope, which is much more supportive of wind development than

the West coast. The states with the best offshore wind resources are as follows: North Carolina


with approximately 38 gigawatts, which would account for almost 22 percent of the offshore

wind capacity on the East Coast, South Carolina with approximately 19.2 gigawatts, and New

Jersey with approximately 16 gigawatts (Mahan, Pearlman, & Savitz, 2010). According to the

NREL and BOEM analysis, the greatest offshore wind potential region for North Carolina is

approximately 199.4 gigawatts in an area of 39,874.8 square miles; with the majority at 12-50

nautical miles from shore, at depths of 30-60 meters and greater than 60 meters, at wind speeds

between 8.5 and 9 meters per second (Schwartz, Heimiller, Haymes, & Musial, 2010). The

greatest offshore wind potential region for South Carolina is approximately 51.9 gigawatts in an

area of 10,383.7 square miles; with the majority at 12-50 nautical miles from shore, at depths of

0-30 meters and 30-60 meters, at wind speeds between 8 and 8.5 meters per second (Schwartz,

Heimiller, Haymes, & Musial, 2010).

The first offshore wind farm in the US is on course to be constructed in the federal waters

off the coast of Cape Code, Massachusetts. The project is called Cape Wind, and the plans

proposed are for the farm to have 130 3.6-megawatt offshore wind turbines with a total capacity

of 468 megawatts (Cape Wind, 2014). The project is on a lease from BOEM which includes a 5-

year assessment term and a 28-year operations term. The project area is within a 46 square mile

region, 25 of which will be dedicated to the actual wind farm (BOEM, 2015). When completed

in 2017, Cape Wind will satisfy 75 percent of Cape Code’s electricity needs, and will hopefully

help launch the offshore wind energy industry in the US. Other offshore projects of the East

Coast are also still in the commercial finance contracting stages such as those in New York,

North Carolina, and South Carolina; either attempting to satisfy all stakeholders in a regional

proposal discussion, or continuing to review and develop projects in order to meet the offshore

requirements of BOEM.


To date, BOEM has granted eleven commercial wind leases, including the one for Cape

Wind Associates in Massachusetts. Massachusetts also has a lease under RES America

Developments Inc., for an area total of 187,523 acres; and another lease under OffshoreMW

LLC, for an area total of 166,886 acres. North Carolina has completed assessments for offshore

renewable energy leases which include three Wind Energy Areas (WEA); the Kitty Hawk WEA,

the Wilmington West WEA, and the Wilmington East WEA, which totals to approximately

307,590 acres. Delaware has a single offshore lease being administered by Bluewater Wind

Delaware, for an area total of 96,430 acres. Rode Island has two offshore leases under

Deepwater Wind New England, LLC, for an area total of 164,750 acres. Maryland has two

offshore leases under US Wind Inc., for an area total of 79,707 acres. New Jersey has an

offshore lease under US Wind Inc., for an area total of 183,353 acres, and another offshore lease

under DONG Energy, for an area total of 160,480 acres. Virginia has a single offshore lease

under Virginia Electric and Power Company, for an area total of 112,799 acres (BOEM, 2016)

(all numerical data in the above paragraph are from a single source). These projects are a result

of very strong interest in offshore renewable energy development in state and federal waters;

coastal states, their public communities, and industrial stakeholders see the potential benefits of

investing into diversifying their economies by tapping into renewable energy resources such as

offshore wind and they can see that it is an investment for both the economic and environmental

benefit in the long term.

According to reports carried out by Oceana and the DOE, offshore wind energy could

supply the majority of the East Coast with its current electricity demands; using the top wind

resource-ranked East Coast states for example, offshore wind potential would serve North

Carolina with 112 percent, South Carolina with 64 percent, and New Jersey with 92 percent as a


percentage of their 2008 state electric generation (Mahan, Pearlman, & Savitz, 2010). The East

Coast of the US has economically-recoverable wind resources that are estimated to have

approximately 127,389 megawatts, or 127 gigawatts of electricity, which could replace 70

percent of the electricity supply that is derived from fossil fuel resources (Mahan, Pearlman, &

Savitz, 2010). Each state that is currently engaging in the process for offshore activities has been

coordinating with the legal advice and guidance of BOEM, conducting environmental reviews,

constructing regional mapping, and engaging in public discussions, all of which is for the

purpose of assessing whether or not offshore development of wind energy is economically,

environmentally, and socially viable for the individual state as well as the Atlantic region.

Along with the investment and development of offshore wind farm projects, there is an

offshore, undersea transmission line system called the Atlantic Wind Connection. This electrical

transmission project would deliver electricity produced from offshore wind turbines off the

coasts of New Jersey, Delaware, Maryland, and Virginia. The Atlantic Wind Connection is

estimated to create over 31,000 jobs and contribute to grid development by improving reliability

and reduce overall grid congestion. This would further fast-track offshore wind development,

making it more energy efficient and cost-effective for delivering renewable power to consumers.

Conclusions and Recommendations

In 2009, President Obama announced to the public that he had finalized regulations on

legislation that was authorized by the Energy Policy Act of 2005, the Outer Continental Shelf

Renewable Energy Program. These regulations provide a framework for issuing leases,

easements and rights-of-way for activities taken place in the outer continental shelf region, which

supported development and production of renewable energy sources. This program initiated

responsibilities for organizations like BOEM and the Department of Energy to include renewable


energy resource developments, particularly offshore. The amount of offshore resources is vast,

especially when looking at the wind the US has off its coasts. When comparing the US offshore

wind potential with the current and ongoing success of northern Europe’s investment into

developing its offshore wind industry, there are many similarities that should inspire more

movement toward an updated and improved offshore energy policy. The European Union

nations of Europe act as though they are a single country, with very few border restrictions for

the spread of commerce and trade, and with a similar currency. The continental US and the EU

are relative in geographical size, and carry out business in many of the same ways. When

comparing the offshore wind resources of the US and the EU, the US has substantially more

abundant resources; in terms of technology, the US could easily have the same success of

developing an offshore wind industry. However, there are not very many offshore wind turbine

manufacturers in the US, making some say that there would be foreign investment such as

DONG Energy, based out of Denmark, that would be very high in price for US companies. This

can be avoided with more initiatives by stakeholders on all levels, from the private sector to

federal government agencies; as well as effective coordination between different parties such as

energy companies and environmental actors. Modern policy needs to be fair to stakeholders that

wish to be involved or want to be concerned about regions where offshore development is being

proposed or planned. The US offshore energy policy needs to continue to promote diversifying

the country’s energy sources by developing technologies for renewable and sustainable usage, as

well as developing projects that are economically viable for the demands of the population. The

technology is there, as seen by the advancements of European nations such as Denmark,

Germany, and the UK, and the US has great potential offshore regions in the Great Lakes and off

the Atlantic coast.


Bibliography

4-Power. (n.d.). EU and Regional Policies for Offshore Wind: Creating Synergies. Foundation

Offshore Wind Energy. Retrieved from

http://www.4-power.eu/media/6366/2014_4power_sow_eu_and_regional_policies_for_offshore_

wind_creating_syne.pdf

About the DOE Wind Program | Department of Energy. (n.d.). Retrieved March 28, 2016, from

http://energy.gov/eere/wind/about-doe-wind-program

About us| EWEA. (n.d.). Retrieved April 1, 2016, from http://www.ewea.org/about-us/

A National Offshore Wind Stratey: Creating an Offshore Wind Energy Industry in the United States.

(2011, February 7). US Department of Energy. Retrieved from

https://www1.eere.energy.gov/wind/pdfs/national_offshore_wind_strategy.pdf

Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of the Atlantic Outer

Continental Shelf, 2014 Update. (n.d.). Retrieved April 11, 2016, from

http://www.boem.gov/Assessment-of-Oil-and-Gas-Resources-2014-Update/

Assumptions to Annual Energy Outlook 2015. (2015, September). Retrieved April 11, 2016, from

https://www.eia.gov/forecasts/aeo/assumptions/pdf/oilgas.pdf

AWC | Atlantic Wind Connection Project. (n.d.). Retrieved April 11, 2016, from

http://atlanticwindconnection.com/awc-projects/atlantic-wind-connection

A World-Leader In Wind Energy. (2015, November). Retrieved April 5, 2016, from

http://denmark.dk/en/green-living/wind-energy/

BARD Offshore I Wind Farm, North Sea. (n.d.). Retrieved April 2, 2016, from http://www.power-

technology.com/projects/bard-offshore-i-north-sea-german/


Bickley, J. (n.d.). About | SEANERGY 2020. Retrieved from http://www.seanergy2020.eu/about/

BOEM’s Renewable Energy Program. (n.d.). Bureau of Ocean Energy Management. Retrieved from

http://www.boem.gov/BOEM-RE-Programs-Fact-Sheet/

Cape Wind | BOEM. (n.d.). Retrieved April 11, 2016, from http://www.boem.gov/Renewable-

Energy-Program/Studies/Cape-Wind.aspx

carbonbrief. (n.d.). The world’s largest offshore windfarms. Retrieved April 11, 2016, from

https://carbonbrief.cartodb.com/viz/ddd6e050-3c47-11e5-b253-0e018d66dc29/embed_map

Carey, B. (2012, September 14). Offshore wind energy could power entire U.S. East Coast, Stanford

scientists say. Retrieved January 25, 2016, from

http://news.stanford.edu/news/2012/september/offshore-wind-energy-091412.html

Cusick,ClimateWire, D. (n.d.). Renewables Boom Expected Thanks to Tax Credit. Retrieved March

31, 2016, from http://www.scientificamerican.com/article/renewables-boom-expected-thanks-to-

tax-credit/

Detail| EWEA. (n.d.). Retrieved April 1, 2016, from

http://www.ewea.org/news/detail/2016/02/02/record-13bn-euro-invested-in-offshore-wind-in-

2015-3gw-new-capacity/

DOE Looks to the Future of Offshore Wind. (n.d.). Retrieved April 5, 2016, from

http://energy.gov/eere/wind/articles/doe-looks-future-offshore-wind

EnBW Baltic 2 - 4C Offshore. (n.d.). Retrieved April 2, 2016, from

http://www.4coffshore.com/windfarms/enbw-baltic-2-germany-de52.html

Environmental and Energy Study Institute. (n.d.). Fact Sheet: Offshore Wind - Can the United States

Catch up with Europe? | White Papers | EESI. Retrieved April 1, 2016, from

http://www.eesi.org/papers/view/factsheet-offshore-wind-2016


European Offshore Wind Association. (n.d.). European Offshore Wind Industry [Document].

Retrieved April 1, 2016, from

http://www.ewea.org/fileadmin/files/library/publications/statistics/EWEA-European-Offshore-

Statistics-H1-2015.pdf

European Offshore Wind Overview. (n.d.). 4C Offshore.

Flintoff, C. (2012, April 12). Where Does America Get Oil? You May Be Surprised. Retrieved March

7, 2016, from http://www.npr.org/2012/04/11/150444802/where-does-america-get-oil-you-may-

be-surprised

Fox, B. (2015). The Offshore Grid: The Future of America’s Offshore Wind Energy Potential.

Ecology Law Quarterly, 42(3), 651–698.

German offshore wind capacity more than doubles in 2014. (2015, January 15). Reuters. Retrieved

from http://www.reuters.com/article/us-germany-windpower-offshore-

idUSKBN0KO1DB20150115

Giberson, M. (2013). Assessing Wind Power Cost Estimates. Institute for Energy Reseach. Retrieved

from http://instituteforenergyresearch.org/wp-content/uploads/2013/10/Giberson-study-Final.pdf

Global Trends in Renewable Energy Investment 2016. (n.d.). Retrieved March 30, 2016, from

http://fs-unep-centre.org/publications/global-trends-renewable-energy-investment-2016

Gode Wind 1 and 2 - 4C Offshore. (n.d.). Retrieved April 2, 2016, from

http://www.4coffshore.com/windfarms/windfarms.aspx?windfarmid=DE13

Grant, J. (n.d.). Developers face obstacles to offshore wind farms in Great Lakes. Retrieved April 10,

2016, from http://michiganradio.org/post/developers-face-obstacles-offshore-wind-farms-great-

lakes


Great Lakes Offshore Wind Energy Consortium Fact Sheet. (n.d.). Retrieved April 10, 2016, from

http://www1.eere.energy.gov/wind/pdfs/gl_mou_fact_sheet.pdf

Harball, E. (n.d.). RENEWABLE ENERGY: Will Ore. test project bring offshore wind to the West

Coast? Retrieved April 10, 2016, from http://www.eenews.net/stories/1059988558

Herbstreuth, S. (2014). Constructing Dependency: The United States and the Problem of Foreign Oil.

Millennium - Journal of International Studies, 43(1), 24–42.

http://doi.org/10.1177/0305829814523327

History of Interior. (2015, July 1). Retrieved March 8, 2016, from

https://www.doi.gov/whoweare/history/

Khol, K. (2014, January 24). A Quiet Oil Boom Rages. Retrieved March 7, 2016, from

http://www.energyandcapital.com/articles/offshore-oil-boom/4193

Macguire, E. (n.d.). Who’s funding the green energy revolution? Retrieved March 30, 2016, from

http://www.cnn.com/2012/06/12/world/renewables-finance-unep/index.html

Mahan, S. (2010, September). Untapped Wealth: Offshore Wind Can Deliver Cleaner, More

Affordable Energy and More Jobs Than Offshore Oil. Retrieved April 10, 2016, from

http://usa.oceana.org/sites/default/files/Offshore_Wind_Report_-_Final_1.pdf

Menaquale, A. (2015, January). OFFSHORE ENERGY BY THE NUMBERS An Economic

Analysis of Offshore Drilling and Wind Energy in the Atlantic. Oceana. Retrieved from

http://oceana.org/sites/default/files/offshore_energy_by_the_numbers_report_final.pdf

NREL: Wind Research - Offshore Wind Turbine Research. (n.d.). Retrieved April 8, 2016, from

http://www.nrel.gov/wind/offshore_wind.html


Ocean Wave Energy | BOEM. (n.d.). Retrieved April 1, 2016, from

http://www.boem.gov/Renewable-Energy-Program/Renewable-Energy-Guide/Ocean-Wave-

Energy.aspx

Offshore | Bundesverband WindEnergie e.V. (n.d.). Retrieved April 2, 2016, from https://www.wind-

energie.de/en/policy/offshore

Offshore Petroleum History ·. (2015, April 25). Retrieved from

http://aoghs.org/offshore-history/offshore-oil-history/

Offshore Solar Energy | BOEM. (n.d.). Retrieved April 1, 2016, from

http://www.boem.gov/Renewable-Energy-Program/Renewable-Energy-Guide/Offshore-Solar-

Energy.aspx

Offshore wind electricity map. (n.d.). Retrieved April 3, 2016, from

http://www.thecrownestate.co.uk/energy-minerals-and-infrastructure/offshore-wind-energy/

offshore-wind-electricity-map/

Offshore Wind Energy | BOEM. (n.d.). Retrieved April 1, 2016, from

http://www.boem.gov/Renewable-Energy-Program/Renewable-Energy-Guide/Offshore-Wind-

Energy.aspx

Offshore wind energy – clean power from the sea. (n.d.). Retrieved April 2, 2016, from

http://www.offshore-stiftung.de/offshore-wind-energy-%E2%80%93-clean-power-sea

Offshore Wind Research, Development, and Deployment Projects. (n.d.). Retrieved April 8, 2016,

from http://energy.gov/eere/wind/maps/offshore-wind-research-development-and-deployment-

projects

Offshore Wind Technology Overview. (n.d.). US Department of Energy. Retrieved from

http://www.nrel.gov/docs/gen/fy07/40462.pdf


Project Benefits | Cape Wind. (n.d.). Retrieved April 11, 2016, from

http://www.capewind.org/what/benefits

Regulatory Framework and Guidelines | BOEM. (n.d.). Retrieved October 12, 2015, from

http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/Index.aspx

RenewableUK | Offshore Wind. (n.d.). Retrieved April 3, 2016, from

http://www.renewableuk.com/en/renewable-energy/wind-energy/offshore-wind/

Reorganization of Offshore Energy Agencies. (n.d.). Retrieved March 5, 2016, from http://www.c-

span.org/video/?300534-1/reorganization-offshore-energy-agencies

Report, D. E. (n.d.). A Look at US Military Energy Consumption. Retrieved February 29, 2016, from

http://oilprice.com/Energy/Energy-General/A-Look-At-US-Military-Energy-Consumption.html

Roberts, D. (2011, November 29). Renewables in the U.S.: Growing fast, but not fast enough.

Retrieved from http://grist.org/renewable-energy/2011-11-28-renewables-in-the-u-s-growing-

fast-but-not-fast-enough/

Schwartz, M., Heimiller, D., Haymes, S., & Musial, W. (n.d.). Assessment of Offshore Wind Energy

Resources for the United States. National Renewable Energy Labratory. Retrieved from

http://www.nrel.gov/docs/fy10osti/45889.pdf

Seanergy 2020 Project. (2010). EU Seanergy. Retrieved from http://www.seanergy2020.eu/wp-

content/uploads/2011/05/110506_SEANERGY_FactSheet_Germany_final.pdf

Smith, A., Stehly, T., & Musial, W. (2015). 2014-2015 Offshore Wind Technologies Market Report.

National Renewable Energy Laboratory. Retrieved from

http://www.nrel.gov/docs/fy15osti/64283.pdf

Submerged Lands Defined. (n.d.). Retrieved March 8, 2016, from

http://www.mcatoolkit.org/Overview/Definitions_Submerged_Lands.html


Thibault, J. (2014). Effective Renewable Energy Policy in the US. European Energy &

Environmental Law Review, 23(5), 233–249.

Thorn, A. (2013, July). Offshore Wind Power in the Great Lakes Region. GLPRN Policy Brief Series.

Retrieved from http://www.greatlakespolicyresearch.org/wp-content/uploads/2013/09/Offshore-

Wind-Policy-Brief.pdf

Tierney, S. (n.d.). Planning for Offshore Energy Development: How Marine Spatial Planning Could

Improve the Leasing/Permitting Processes for Offshore Wind and Offshore Oil/Natural Gas

Development. Analysis Group. Retrieved from

http://www.analysisgroup.com/uploadedfiles/content/insights/publishing/

planning_for_ocean_energy_development_complete.pdf

Turbine Timeline. (n.d.). Retrieved April 1, 2016, from http://www.awea.org/About/content.aspx?

ItemNumber=771&navItemNumber=5238

UK Trade & Investment. (2015). UK Offshore Wind: Opportunity for Trade and Investment. Green

Investment Bank. Retrieved from http://www.greeninvestmentbank.com/media/44638/osw-

pitchbook_ukti_june-2015.pdf

U.S. Energy Information Administration - EIA - Independent Statistics and Analysis. (2015,

September 17). [Profile Analysis]. Retrieved March 7, 2016, from

https://www.eia.gov/state/analysis.cfm?sid=CA

US EPA, O. (2016, March 29). Benefits of Green Power Partnership [Overviews and Factsheets].

Retrieved March 31, 2016, from https://www.epa.gov/greenpower/benefits-green-power-

partnership

Wiersma, F. (2011). State of the Offshore Wind Industry in Northern Europe: Lessons Learnt in the

First Decade. ECOFYS. Retrieved from


http://archive.northsearegion.eu/files/repository/20120320110429_PC-

StateoftheOffshoreWindIndustryinNorthernEurope-Lessonslearntinthefirstdecade.pdf

Wind 101: the basics of wind energy. (n.d.). Retrieved April 1, 2016, from

http://www.awea.org/Resources/Content.aspx?ItemNumber=900&navItemNumber=587

Wind Energy Technology Basics. (n.d.). Retrieved March 29, 2016, from

http://energy.gov/eere/energybasics/articles/wind-energy-technology-basics

Windfloat Pacific About. (n.d.). Retrieved April 10, 2016, from http://windfloatpacific.com/about/

Wind Resource and Potential. (n.d.). [Document]. Retrieved April 1, 2016, from

http://css.snre.umich.edu/css_doc/CSS07-09.pdf

Wind Turbine Basics. (2013, July 30). Retrieved April 1, 2016, from

http://energy.gov/eere/energybasics/articles/wind-turbine-basics

senior thesis 2016

Documents