Costs: Oil Rig VS Wind Power

Costs: Oil Rig vs. Wind Power


I read an article this week by Karl Burkhart of the MNN (Mother Nature Network) and found some of his research very interesting. Burkhart determined that the ill-fated Horizon Rig, which consisted of two deep-water wells, required an investment of $8 billion to $12 billion over its 25 year anticipated lifespan when considering construction and operational costs.

What will $12 billion buy in wind power? About 33 billion kilowatts annually. Enough to power 3 million homes or more than 7.4 million electric cars annually. When evaluating the number of gasoline cars that the oil rig could power, Burkhart used future fuel standards that have yet to be achieved. However, I calculated the figure based on findings by RITA (Research and Innovative Technology Administration) of the U.S. Department of Transportation and that number is 14.2 million cars annually.

As a nation, we love oil, plain and simple. Oil yields 2 times more transportation power per dollar invested. Burkhart is clear to point out that the cost of gasoline for the end-user is considerably higher than electricity. With gasoline hovering at $3/gallon and the typical automobile getting 20 mpg, the average American spends $1800/year in fuel. In comparison, average electricity is $0.10/kilowatt, so one mile on electricity costs only 3.7 cents, or just over $400/year. If you figure that 7.4 million Americans would be saving $1400 per year, that is about $10.4 billion going back into the U.S. economy.

Once environmental clean-up costs of the oil rig disaster are considered, it adds another $45+ billion to the 25 year cost figure, making it a much different picture. NOAA (National Oceanic and Atmospheric Administration) says that oil spills are quite frequent, citing a recent year where 257 global oil spills were calculated. Wind power wins, hands down!!

Burkhart concludes, “of course, this sad little number game will never make up for the incalculable losses to the fishing industry, the tourist industry, the health of wetlands, the survival of wildlife, the carcinogens that are now leaking into the water systems of Gulf residents; all things for which BP will never pay. We, the American people however, will pay those prices for a very, very long time to come."

You get my drift ... it is time to change the way we think about offshore energy resources and start switching to safe, clean wind power.” I whole-heartedly agree.