Originally Posted by sonoronos
If I understand correctly, there isn't enough oil in our own reserves to supply our demand.
1.2 billion barrels sounds like a lot, but the US imports more than 3 billion barrels per year.
I believe this is the primary reason that the legislation isn't supporting exploiting our own oil reserves. Our reserves are there for a reason - they are our reserves. Once they are burned they are burned.
Think of a day when the middle east runs out of oil. Or stops supplying it. Or Russia takes over. Or China takes over. Or if something bizarre happens in foreign politics that isolates the US from any friendly source of oil. There has to be enough to pull us through war, diplomacy, whatever it takes. Our oil reserves are basically a savings account that never goes away, until we use it. It would be a really bad situation if we had nothing to fall back on.
Sonoros, You are the master of facts. I would, in almost any case, tip my hat to your grasp of the material. But this time I must politely disagree.
I'm, not sure what you would consider 'big" but the Bakkan field in N Dakota is considered one of the largest continous finds ever in North America and is only 2.9 Billion Barrels.
The 1.2 billion barrels is from one small known reserve we can't touch right now. It is part of the 1500 mile gulf coast that with a 50 mile limit would amount to 75,000 square miles of ocean where we know there lies good prospects for domesticaly produced oil. Congress, the "gang of ten" and the Democratic leadership may make this area off limits as a comprimise to extending the deep ocean drilling ban currently in place. My point, which I clearly did not elaborate well is, we should stop arguing this in Congress and let the existing law expire.
I agree with you that using up our own reserves is not good planning. But not having our own available ie; ON TAP, allows the OPEC nations to exploit us. We have no choice but to beg for their product and send our money overseas. And pay whatever they ask.
As a consumer we must compete with India and China who will pay any price to continue their massive industial growth. They also have no choice until they create their own oil supply system, something they are building' as we speak, right off our coasts.
Think of it this way, if OPEC had to compete with domestic producers, in order to get the US to buy any oil they would have to price it competitively. As it stands now, they just set the price. That is because despite the oil glut that currently exists, we have to buy it from them.
As to the "reserves' you mentioned. Under the conditions you suggested, ie; war, OPEC runs dry etc, having unproven reserves in the ground would be useless. We need to be exploiting them, proving them and then judiciaously using them as leverage to get the best pricing, or the best strategic positioning.
Because, as Putin just proved in Georgia, control the oil, control the politics. Europe is nervous to help the pro western nation of Georgia because one third of their oil comes from Russia. And much of the rest comes from her friends. While Norway could fill much of the gap, having only one vendor means what to the price of crude?
Truth is I don't know all that much about the oil business but I put my money where my mouth is. I said a while back that we need to explore and drill here in the US for oil. We need to drill off shore. we need to pursue alternatives in fuels and in energy production. We need to develope new transportation technologies. Big meaningless words unless someone is willing to really do something. So I am.
Many would happily just let the government do it. I say that is lazy and foolish talk. So I am doing my research, my due diligence and putting my energies to that end. I'm learning a lot about oil and NG and geology and companies that are willing to take the risks to try and solve the problem through entreprenuership and practice, not theory and committees.
The money I would have donated to political candidates is being redirected to small cap companies that want to explore and exploit energy resources and alternatives here in America. I'm looking for that unsung little hero that investment banks and government grants wont fund because he's to busy trying ideas to fill out the paperwork or create a business plan. When the idea becomes real hardware, I want to be there when it lights up the room.
I don't have much cash to work with but then I started my company on a $600.00 limit credit card. I would guess there are a lot of people who's small investments if combined, could make a difference. But only if we get government , eco terrorist and the Gorebamites out of the equation.
Get the government out of it. The little guys in the garages will make the electric car either go or go faster.
roadster with a stick