Editor-at-Large | Jim Leutze | Offshore Energy A Complex Issue

Offshore Energy A Complex Issue

By Jim Leutze

One of the more interesting things I have learned while serving on various state boards and commissions is how little public attention is paid to the rule-making or recommendations made by those groups. An exception is the Marine Fisheries Commission meetings, which always include armed police officers since public input can turn volatile and potentially violent. I’m not advocating that level of engagement, but generally we do need more public attention. It’s not that these boards discourage input. They always welcome and encourage public suggestions and comment. The problem is the public often doesn’t respond. Moreover, it is normal practice for boards and commissions to devote personnel to the specific task of public education. Despite the intent and the efforts, much public policy-making proceeds without many people paying attention. I just had a good example of this matter during a recent meeting of the Offshore Energy Exploration Committee.

This particular meeting was devoted to considering the onshore infrastructure needed to facilitate the harvesting of offshore energy, whether oil, gas, wind or other more esoteric technologies. It turns out that this is a complex and nuanced issue. In the first place, the infrastructure necessary to support the various types of energy production varies widely. For example, oil would take the most, wind would take much less. It is, however, the case that virtually any energy production will require, at a minimum, some increased road and rail infrastructure — sometimes in areas where the transportation network is already overloaded.
In the case of oil or natural gas it is not certain they would be brought ashore in North Carolina since both Norfolk, VA, and Charleston, SC, are larger and already have more relevant infrastructure in place. But if North Carolina received the products, the only possible ports of entry are Wilmington and Morehead City. Consequently, the first presentation was from the North Carolina Ports Authority. The two State Ports, which, despite the title, are for-profit enterprises, receive no state funds. The most likely site for oil and gas drilling — “the point” — is off Cape Hatteras and much closer to Morehead City. That port currently comprises 128 acres — half the size of Wilmington — and pales by comparison to Charleston at 575 acres. The Ports Authority representative did say that Radio Island, which is part of the Morehead City complex, would be an ideal place for pre-construction work on either wind turbines or oil rigs. He also said that there would have to be considerable infrastructure improvement since all transportation depends on the railroad that runs through the center of town on the already congested NC Highway 70.
The real hope for the future is the proposed North Carolina International Terminal (NCIT) at the mouth of the Cape Fear River. This point would comprise 600 acres, accommodate the giant ships being built to transit a re-designed Panama Canal, and be 50 percent larger than the current ports at Charleston and Norfolk. Presumably there will have to be significant road and rail improvements to serve this huge project, which should begin first phase development in 2017.
We next heard from municipal and county organizations regarding their interest in accommodating the new onshore developments. What would they have to do regarding zoning and land use plans? Sure they want some jobs, but what impact will all this have on tourism? We didn’t have the answers, nor did they. Then someone introduced the troubling issue of sea level rise. Even if you’re not convinced of this inevitability, prudent planning calls for at least considering it. In any case, the officials conceded that their public had not really begun to focus on the issues.
As I said at the start, it is unfortunate the citizens, many of whom will be affected, don’t tune in when decisions are being made. However, in this particular case inattention may be understandable. Estimates are that if we were to begin drilling at the earliest possible date, it might be 20 years before oil would begin coming onshore. Natural gas would come a little quicker and wind is the quickest, but you still are talking years and years. The NCIT won’t start until 2017 and probably won’t be in full operation until 2030. Sea level rise happens very, very slowly and probably won’t be very noticeable until 2050.
Unfortunately, however, decisions regarding offshore energy production and exploration need to be made within the next few years. I only hope that when the consequences of those decisions are realized, the public will wish they had paid more attention.