I'm a petroleum geologist who has been working in the industry for nearly 4 decades. I have worked for oil companies from small outfits to majors (Think four of the former 7 sisters.)
I must have missed something.
The only way we will be swimming in domestic oil is if the administration decides to start boiling us in it.
Yep, we've done one hell of a job bringing production up and prices down, but there is a limit to how low prices can go before drilling stops.
From there, the overall production will decline. Simple reservoir mechanics.
If we don't replace the depletion drop in existing production with new production, we don't even keep pace. If there is an increase in demand, production has to cover that, too, and the only way to do that is with new wells, new producing formations, and new reservoirs, and to some extent, new technology. That is how we got this far.
It isn't like hitting a switch, all that research, data gathering, training the personnel, building the infrastructure, producing the tools, and getting the paperwork done (leases, permits, etc.) to drill those wells takes time and one hell of an investment.
No, we aren't exactly swimming in domestic oil now (we still import a lot, only the Saudis producing as much as they can is causing the glut), and production will decline even more over the long run if our government crashes the price by dumping oil on an already down market.
It is like letting someone manage your portfolio who buys stock at 100/share and sells at 30.
Selling more shares doesn't make the deal more attractive, and losing billions now and likely spending billions more above the current sale price in the future to replace it is just stupid.
There are other ways to raise money, including land sales, opening mineral exploration and mining on Federal Land (the Government gets a cut of the production, just as it does with oil), downsizing the Government, eliminating agencies, redundancy, and waste, and herding the cats on Capitol Hill back inside the fence the Constitution was supposed to keep them in would all go a long way toward balancing the budget.
That isn't so much to ask. Most of us have to balance our budgets and live within our means, it's high time our Government did.
Thanks for the info Joe. I am still amazed at the information other FReepers are able too provide on such varied subjects.
My point was we have much more Oil in the ground that anyone would have ever thought we had just ten Years ago.
I have a very Liberal B-I-L. Whenever we discuss Big Oil, which he loves to do since he hates them like crazy, he insists we have less than a 50 Year Supply of Evil Petroleum.
When I correct him, he stares in disbelief. I can only attribute his refusal to accept the truth as his having an aversion to Googling it.
Back to the topic at hand, we aren’t at the mercy of OPEC like we used be. It is Economics, not the fact that the Reserves aren’t there for the taking if we choose to do so.
In other words, our wonderful Government in action.