Skip to comments.The Oil Scarcity Myth
Posted on 03/17/2012 4:13:24 AM PDT by Kaslin
Rapidly rising gas prices at the pump have turned up the heat on Barack Obama. Interestingly, the Administration that just three years ago said it was committed to policies that would cause energy prices to skyrocket and get our gas prices to the levels in Europe, now says there isnt much they can do about rising costs to consumers.
One of the many falsehoods that the President and his anti-fossil fuel allies like to perpetuate is that the U.S. is about run out of reserves. But you and I both know that with only 2% of the worlds oil reserve, we cant just drill our way to lower gas prices not when we consume 20% of the worlds oil, Obama said yet again in his weekly radio address last Saturday. He repeatedly makes this less-than-truthful claim to obsessively press his anti-oil and gas agenda and justify wasting billions on green energy fantasies.
Obama's basis for his 2%-of-the-world's-oil-reserves claim is the narrow definition of proven reserves a measure based on currently producing fields only, rather than identified but undeveloped known reserves which are far more vast. The 22 billion barrels of proved reserves, according to the federal governments Energy Information Administration are a small subset of recoverable resources. Obama conveniently forgets to mention that part. That he knowingly repeats the less than truthful claim for the purpose of perpetuating a misconception is shameless.
Various reports from Obamas own government including the Energy Department, the Congressional Research Service, and the Energy Information Agency as well as a plethora of private analyses tell a dramatically different story. To be sure, technological challenges, cost of extraction, and political barriers will prohibit some part of the oil buried deep beneath the earth from being harvested, but Obama's representation is pure baloney and he knows it. For a detailed summary of a more accurate assessment of our reserves click here for a feature story from todays Investors Business Daily. If you want the condensed version in graphic form, see below. Please take note that Obama would have you believe all we have left is depicted by the tiny red triangle at the top of the pyramid.
Courtesy of Investor's Business Daily
Obama finally has things going the way he wants them, but it might effect his election so he is trying to soft soap America. He has gotten away with it for 3 years, and will probably get away with it again.
Tired of his lies. Tired of democrats selling us out. Tired of Republicans going along to get along.
In 1980, the U.S. had oil reserves of roughly 30 billion barrels. Yet from 1980 through 2010, we produced over 77 billion barrels of oil. In other words, over the last 30 years, we produced over 150 percent of our proved reserves.
The track record of the Federal Government and the industry in general to quantify the future with regards to oil and gas would have me betting on the “over” rather than the “under”.
he just blatantly lies about it. in his Marxist upbringing, it is not only a good idea it is a requirement to RULE! He has stated that he wants European type oil pricing...he would love a country full of bicycle riders who owe everything they have to the state....
(Obama is prepared to really take power and begin to RULE from day one..... Valerie Jarret co-chair of the Messiah's transition team.)
Here’s an even broader picture......
In 1944, U.S. proven oil reserves were 20 billion barrels about the same as they are today. Yet, between 1945 and 2010, the United States produced 167 billion barrels of oil. In other words, the United States produced over 8 times more oil than the amount of proven oil reserves it had in 1944. How can that be? The answer is that proven oil reserves are not stagnant because people keep looking for oil. Proven oil reserves keep changing, are officially recorded every year, tallied country by country, and published in the Oil and Gas Journal, among other publications. And due to U.S. entrepreneurship and ingenuity, more reserves are found and proven each year.
What happens is one or more of the following: 1) technology is found that converts hard-to-produce resources into proven reserves, 2) oil prices increase to allow more expensive types of oil to be produced, and/or 3) companies are able to purchase additional leases and explore for new basins of oil. An example of the first case where technology enables oil resources to become proven reserves is hydraulic fracturing and horizontal drilling used to produce shale oil resources, most notably in North Dakota. North Dakota now ranks third among the states in oil production.[iii] Its proven reserves have increased 25-fold in 13 years, and are likely to grow much larger.
I can tell you that several International companies (some based in Germany) hold title to Powder River Basin coal.
“The track record of the Federal Government and the industry in general to quantify the future with regards to oil and gas would have me betting on the over rather than the under.”
To say nothing of the fact that pumped out, dried up wells in the Gulf of Mexico have been found to be “refilling” some how.
“What happens is one or more of the following: 1) technology is found that converts hard-to-produce resources into proven reserves, 2) oil prices increase to allow more expensive types of oil to be produced, and/or 3) companies are able to purchase additional leases and explore for new basins of oil. An example of the first case where technology enables oil resources to become proven reserves is hydraulic fracturing and horizontal drilling used to produce shale oil resources, most notably in North Dakota. North Dakota now ranks third among the states in oil production.[iii] Its proven reserves have increased 25-fold in 13 years, and are likely to grow much larger.”
Or as in our case ya drill a little deeper then the Wolfberry and we find the Canyon Sands. We’ve been drilling Wolfberry wells here for many years, then we decided to go down to 9000 ft and see whats there, we hit the Canyon Sands at about 8500 ft and these wells are coming in at close to 400 bpd and holding a around 60 bpd after a year. This was on our old Wolfcamp stuff that was pretty much played out in this area. Seismic did not show this, so I guess what I’m trying to say is, you don’t really know what you have until ya start puching holes.
The Russians abandoned the old fossil fuel phony theory years ago while the ‘peak oil’ propagandists kept peddling the same old line. Peak oil is nothing more than the precursor to global warming and carbon tax junk science war on carbon. What they will come up with next remains to be seen. Back to the Russians. Their theory is that crude is a natural occurring substance found in the molten center of the earth and works its way out to the ‘relative surface’ of the earth through fissures in the mantel. That is why the the Russians have been drilling down around the 10,000 foot level for a long time. Anyone ought to be able to figure out you do not find many dead dinosaurs down at 10,000 feet.
“Their theory is that crude is a natural occurring substance found in the molten center of the earth and works its way out to the relative surface of the earth through fissures in the mantel.”
Only one problem with their theory, why is oil only found in ancient seabeds?
There isnt a scarcity of oil.......nor is there a scarcity of printed money.....
Its the printed money and subsequent devaluation of the Dollar that is pushing fuel....
One place where the nutcase Ron Paul is correct on
“Anyone ought to be able to figure out you do not find many dead dinosaurs down at 10,000 feet.”
LMAO! Oh you may find one or two along with the billions of tons of micro organisims that settle to the seabeds daily and have for hundreds of millions of years. The fact that oil sample produce fossil molecules is another tell. The sea’s are producing new beds of oil bearing deposits as we type.
“Tired of Republicans going along to get along.”
But why are they trying to get along with our pretend president?
And why has the Democrat Party become anti-American?
Are they all being blackmailed by President Obalgae?
Anyone ought to be able to figure out you do not find many dead dinosaurs down at 10,000 feet.
Dinosaurs are thought to be bird like, not mammal like.
I would argue the burrowing owl is the possible result of the burrowing dinosaur precursor
So all those commercials about ‘Putting a tiger in your tank’ were just plain wrong?
We would be far better off without all these foreign entanglements and wars for oil along with the manipulation from OPEC and the rest. That's the real quagmire we're stuck in.
You want a winning campaign issue? There it is. Take a poll, if you need to.
Another thing to keep in mind: The 800 billion barrels of kerogen in the oil shale is recoverable using current technology.
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