US Offshore Energy Policy Outlook

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

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.

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