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1. Derivation

Drilling for Oil – Domestically

The Product Description may be derived from the following:   

Product breakdown structure The end-users of the product Quality Management Strategy Configuration Management Strategy

Creating a more self-sustaining Nation

2. Quality criteria What makes a excellent Product Description          

The purpose of the product is clear and is consistent with other products The product is described to a level of detail sufficient to plan and manage its development The Product Description is concise yet sufficient to enable the product to be produced, reviewed and approved Responsibility for the development of the product is clearly identified Responsibility for the development of the product is consistent with the roles and responsibilities described in the project management team organization and the Quality Management Strategy The quality criteria are consistent with the project quality standards, standard checklists and acceptance criteria The quality criteria can be used to determine when the product is fit for purpose The types of quality inspection required are able to verify whether the product meets its stated quality criteria The Senior User(s) confirms that their requirements of the product, as defined in the Product Description, are accurately defined The Senior Supplier(s) confirms that the requirements of the product, as defined in the Product Description, can be achieved

3. Tailoring It is a principle that a PRINCE2 project tailors the method to suit its needs. Tailoring refers to the appropriate use of PRINCE2 on any given project, ensuring that there is the correct amount of planning, control, governance and use of the management products. You may find it necessary to tailor this template up or down to meet the needs of your project. For everyone involved in the project, it should remain clear as to what the purpose of this management product is, what it should comprise and what the quality criteria are. This template could quite easily be reduced if required.

Creating a more self-sustaining Nation | Confidential

Gaylene Thueson Justin Aquino Sheree Bingham Jacob Gambill


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Drilling for Oil – Domestically

INTRODUCTION

APPROACH 1

Drill for oil in the United States

APPROACH 2

Increase Offshore Drilling

APPROACH 3

Open the Arctic National Wildlife Refuge to Drilling

OVERVIEW

APPENDIX

Author’s Bios and publication contribution

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INTRODUCTION

Gasoline prices are at record levels for this time of year and are stoking fears of $5 gasoline this coming summer. Current prices are at levels only previously reached during peak summer driving seasons Prices at the pump are up, but only about 10% from a year ago. That said, higher pump prices can be blamed mostly on higher global oil prices and reduced refining capacity. Oil is a global commodity, and it is up for a variety of reasons, including the situation with Iran threatening to close the Strait of Hormuz (20% of the world's oil goes through the strait daily), European economic issues ebbing for the moment, and continued demand growth in Asia and Latin America. It should be noted that gasoline is tied more to global demand than in the past when U.S. demand was the primary driving force in determining the price at the pump. We also have seen several older, inefficient refineries recently announce closings as they can no longer compete. This has resulted in tighter refining markets than we normally see this time of year. This all comes while gasoline demand in the U.S. is at its lowest level since 2001. Normally when demand is down, prices go down. So why isn't it this time? The reason is not that the other factors noted above are trumping any impact of lower demand. Unfortunately, we can no longer expect gasoline prices to go down if we drive less. Global influences are greater than ever and likely will remain key drivers in the future. Global demand for oil is growing rapidly. The U.S. Energy Information Administration predicts that global oil demand will grow from 85 million barrels per day in 2006 to 97 million barrels per day by 2015 and 118 barrels in 2030.

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Drilling for Oil – Domestically

Production costs grow exponentially as depletion progresses. The remaining oil is of lower quality and must be extracted from deeper in the earth, often in deep water and ultra deep water off-shore sites. As depletion progresses more and more, energy must be expended to extract, transport, and refine lower quality oil that contains less and less energy. Because many oil exporting nations are experiencing both depletion and increased domestic consumption, these exporting nations will soon reduce exports.

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APPROACH 1 Drill for oil in the United States

According to the American Petroleum Institute, there are “70 million more drivers on the road driving about 113 million more vehicles today than there were 30 years ago. Over this same period of time, drivers have increased the miles they each drive by about 44 percent, which means that vehicles traveled per year had increased by about 145 percent since 1970.” The increased need for vehicles has come with an increased need for fuel. 

Why drill oil in the United States? o

The United States has a huge federal debt, with many states also having crushing debt loads.

o

The United States has extremely high unemployment levels, as well as considerable hidden unemployment. Job will be created by drilling domestically.

o

The United States spends billions of dollars importing oil from countries besides Canada. Our country needs to become more self reliant.

North Dakota is the hotbed of domestic drilling – The Bakken is a formation of shale source rock covering about 200,000 square miles of North Dakota, Montana and Saskatchewan. It is currently the largest known reserve of light sweet crude in North America.

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APPROACH 2 Increase Off Shore Drilling 

A report by the National Research Council found that offshore oil and gas drilling was responsible for just 2% of the petroleum in North America's oceans, compared with 63% from natural seepage and 22% from municipal and industrial waste. Coast Guard reports show that the amount of oil spilled in U.S. waters dropped from 3.6 million barrels in the 1970s to less than 500,000 in the 1990s. The safety of drilling has improved over time.

During Hurricanes Katrina and Rita in 2005, 115 oil platforms were toppled, but only insignificant amounts of oil spilled, says Roland Guidry, Louisiana's oil spill coordinator.

There was significant pollution — 8 million to 10 million gallons of oil spilled, mostly from tanks and pipelines on land and from tankers striking submerged drilling platforms — but less than 10% of that came from federal offshore operations.

Today's technology, such as automatic shutoff valves on the seabed floor and mechanical devices that can prevent blowouts caused by uncontrolled buildups of pressure, has greatly reduced the risk of oil spills.

The benefits of domestic oil drilling far outweigh the risks.

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APPROACH 3 Open the Arctic National Wildlife Refuge to Drilling

Given the advancements in technology and our current economic struggles, it's clearly time to give ANWR energy production fresh consideration.

The North Slope of ANWR, a tiny section of the 19 million-acre refuge, was specifically set aside by President Jimmy Carter and Congress for potential energy production. A plan developing less than 500,000 acres would provide access to the majority of ANWR's energy resources. We can harness the potential of ANWR by using less than 3 percent of its acreage.

Advances in technology allow for energy production to be conducted safely and with minimal environmental impact. New extended-reach drilling allows for a single drilling platform to cover a 28,000-foot radius—larger than the size of Washington, D.C.

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Drilling for Oil – Domestically

OVERVIEW

For 50 years we have been told by Environmentalists that it would be 5 years before domestic drilling would relieve our current inflated fuel prices. Had we increased our production at that time, and kept our refineries updated, we would not even be affected by the current chaos in the Middle East. Perhaps OPEC would not have power to hold us hostage with their choice of production levels. We were once a proud and Independent country, when will we choose to return to that philosophy? We cannot just change our minds but we must also change our actions. Drilling for oil domestically is our best option.

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APPENDIX Gaylene Thueson is a student from Parma, Idaho. She is finishing her Bachelors Degree of University Studies at Brigham Young University Idaho. She is also a Transportation Supervisor at Notus School District #135 in Notus, Idaho. This subject is a passion for Gaylene as she sees the costs of transporting students on a daily basis. Her son–in–law is a trucker and his livelihood depends on fuel. We all eat so our lives depend on the fuel supply being shipped to our neighbourhood supermarket. Oil production keeps America as well as the world running. Gaylene has researched well the current social issue of domestic fuel verses imported oil. She is one of the writers of this publication and was responsible for the research of the history and nature of the problem of oil drilling and it’s social effects here in the United States. She interviewed Jack Ingram and part of her research. Jack is the Fuel Supply and Distribution Coordinator for Valley Wide Coop. Gaylene’s contributions are listed below: Drilling for oil domestically would be good for our nation:   

Off shore drilling North Dakota Drilling Drilling possibilities in Alaska

Solutions:   

Increase off shore drilling Fracking Open ANWR to Drilling

Personal reflection: I found that there were a lot of facts I did not know about the subject of oil production. There is more oil being drilled here in the United States than we hear about. There is also so much oil within our borders that we are not tapping into, even enough to satisfy our needs for another projected 200 years at the current need. I also found that there is a lot of emotional feelings on both sides of the issue that are being used for political leverage. When you get down to just the facts, we can be gaining a freedom if you will, from using our own oil rather than buying from other countries. There are safe ways to drill that are not as harmful to the environment as the process once was. And speculation does have an effect on the prices of the gas at the pumps.

Justin Aquino is in his last semester of his undergraduate studies. He is from Northridge, California and is studying communications with an emphasis in

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Drilling for Oil – Domestically

organization and a minor in international studies. Justin served a full-time voluntary mission for his church in Busan, South Korea. His dream in life is to organize the Summer Olympics as he enjoys putting together events and sports. Environmental oil was personally not a topic of interest to Justin but with time and studying into the topic, he fell in love with it and has enjoyed studying it and working with his co-authors to create this publication. Justin is one of the writers on this project. He focused on the scope of the issue as well as creating a solution that would support the desired advocacy. Included in his research, he interviewed his cousin who is living in a town in North Dakota that is currently going through this type issue. His hometown has been booming for the past couple of years because of the extracting of oil. He also researched 8 sources, 3 organizations, and 3 websites in contributing to this publication. His contributions are listed below:        

Should the Arctic National Wildlife Refuge be Opened to Oil Drilling? The Case for Increasing Domestic Oil Production Benefits of Drilling for American Oil Drilling Oil in Alaska Should the US cancel plans for offshore drilling? (PROs vs CONs) opec.org peakoil.net bp.com

Personal reflection: The opportunity I have had to study about environmental oil has been an amazing experience. I didn’t know too much about the issue though I formed an opinion about it before hand but after doing the research I have done, I now have a stronger understanding about the issue and my opinion I have had is now even stronger. Since I had only studied the positive points to why we should have environment oil, my opinion could be bias but as I studied the issue and seen the statistics in graphs that proved every dissenting opinion as not viable, I began to see its importance in our society particularly in the United States and how we shouldn’t rely on other nations that are enemies or even allies of ours but instead find the oil on our own so we can produce it and not be as dependent on those other nations. Oil can have negative effects on the environment especially when in search of it. But it is remarkable to see that the only times oil comes onto the news is when there is a huge oil spill that occurs even though that is the only time in a long period of time even in years when we hear about it. I never realized that until doing my study and that is because oil spills have significantly dropped every year in the past 40 years. Technology is a reason why less oil spills have occurred and through the increase and advancement of technology not only oil spills have been less relevant but also the environment has been more protected so animals and plants aren’t as much in danger as they were used too. If I wasn’t able to research on this issue I wouldn’t have learned so much about it and I would have had the same opinion about it before even without any prior knowledge of it. Now I can go into any conversation about environment oil and defend its necessity and importance as well as understand

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the other point of view and rebuke it because the opposition’s defence isn’t as strong as others may think. I have now learned that before anyone can form an opinion about any particular issue, they should do enough research from several different sources so they can see what they think are right or wrong. Most people with political affiliations form an opinion about a particular issue without doing any research into it. People support the death penalty without any viable reasons to why it should be done and why it shouldn’t. It is important from now on in my own personal opinion to always research on a particular issue before making a final opinion on it.

Sheree Bingham is a student of communication at Brigham Young UniversityIdaho. She is from Albuquerque, New Mexico. Sheree is a public relations enthusiast and loves to be active in the business community! Gasoline is something that affects everyone. Everyone has to use transportation at some point during the day. Everyone has to eat and shop. The issue of drilling for oil is quite controversial and people need to realize that the issue is not going to go away. Sheree was one of the writers of this publication. She and her coauthors chose this topic because of its global affects as well as the affect it has in their personal lives. Sheree researched the ramifications of continuing to import oil as opposed to drilling in the United States. Her research reached beyond the bounds of this publication and enlightened her personally with increased understanding of issue. Sheree interviewed Ray Griffith of Griffith Engineering and talked to him about how gas prices have affected his business. Her contributions include the following: The affect of fuel prices on our Nation:   

Why are oil and gas important? When did online shopping start? Fuel Economy

Oil drilling facts:  Airline Industry  How does oil drilling work?  Risks and rewards of drilling oil Other: 

John Deere

Personal reflection: While completing this assignment I realized how big of an issue oil prices really is. I was very reluctant in doing this project because I originally did not feel very passionate about it and I felt like I would never be able to find enough research on the topic. The more I researched and compiled for

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the project the more interested I became. There is lots of information on this topic. You just need to know where to look. I started doing research on my own, outside of assignments, and enjoying it. In my research I found some things that I read to be a lot more persuasive than other articles. I found that articles that were better formatted and better written were more persuasive than those that were just thrown together. It is easy to see when people know what they are talking about. It is so important to build credibility with your audience otherwise anything you say is not worth a grain of sand. I will definitely be more careful in my writing from now on.

Jacob Gambill is graduating from Brigham Young University Idaho in April 2012 with a BSBM. His professional background is in management. He managed a branch of Masco Contractor Services for eight years in Medford Oregon where he lives with his wife Emily and their three children. He enjoys spending time with his family and completing projects around the house. As fuel costs rise and the Nation’s dependency on oil increases, the issue of domestic drilling for oil has become more forefront in society and important to all Americans. Jacob’s interest in this subject has resulted in some telling research about the pros and cons of drilling for oil domestically. Completing this publication has been an informative experience; an experience which has created better understanding and improved knowledge. It is the hope of authors that this publication serves the reader as much as the preparers. During the research process on this subject the following information was uncovered and appropriately used in this publication.

  

Exxon Valdez Lake Peigneur Tragedy Lake Peigneur Tragedy – Video Clip

Jacob edited this publication.

Creating a more self-sustaining Nation

Drilling for Oil Domestically  

Will drilling for oil on the home front of the United States benefit the Nation? This publication will help you see that it will.

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