World's oil thirst leads to risks

MIAMI — The world's thirst for crude is leading oil exploration companies into ever deeper waters and ventures fraught with environmental and political peril.

The days when the industry could merely drill on land and wait for the oil — and the profits — to flow are coming to an end. Because of that, companies feel compelled to sink wells at the bottom of deep oceans, inject chemicals into the ground to force oil to the surface, deal with unsavory regimes, or operate in some of the world's most environmentally sensitive and inaccessible spots, far from ports and decent roads. All those factors could make it difficult to move in equipment and clean up a spill.

From the Arctic to Cuba to the coast of Nigeria, avoiding catastrophes like BP's Gulf of Mexico spill is likely to become increasingly difficult and require cooperation among countries that aren't used to working together.

An Associated Press review of oil ventures around the world found plans to punch through layers of salt more than three miles beneath the ocean floor off the coast of Brazil, drill seven exploratory wells off Cuba and extract oil from crude-soaked sands on the Canadian prairie. Drilling is proceeding in countries with extremely weak regulations and a lack of skilled operators, and in geological settings much like the northern Gulf of Mexico, with high pressure and weak rock formations ripe for blowouts.

Companies are seeking the new frontiers amid warnings from some analysts that worldwide oil production will peak and then decline as onshore wells dry up. It's not that oil itself is scarce — global reserves are estimated at 1.2 trillion barrels — but getting to it requires large investments in treacherous places.

"It's just getting harder to find this stuff. You're having to go to the end of the Earth or the bottoms of very deep oceans now," said Randy Udall, director of the nonprofit Community Office for Resource Efficiency in Aspen, Colo.

BP CEO Bob Dudley argued last week that deep-water drilling is necessary despite the dangers because the world could be consuming 40 percent more energy by 2030.

BP and other major oil companies say they are preparing for the risks and trying to find common solutions. Also, the International Association of Oil and Gas Producers, a trade group, is talking with other industry organizations in the U.S., Australia, Brazil and Britain about preventing and responding to disasters, said executive director Michael Engell-Jensen.