Saturday, April 30, 2011

SLIPPERY STUFF

President BO is bound and determined that the way to get us off of our dependence on foreign oil and onto "green energy" is to force us to buy products that we are not economically ready to buy.

Electric cars are a joke...pure and simple.

In order to get us to buy them, President BO is perfectly willing to allow the price of crude to rise until we cannot tell the difference between the cost of operating our oil based vehicles and the cost of buying and operating the inefficient, unusable electric vehicles, such as the Volt and the Leaf.

During the last oil crisis, I wrote frequently about our need to start drilling in the US for oil.

The hue and cry then was, "We can't drill ourselves out of this crisis."

That was not true then and it is not true now, for several reasons.

The price of crude oil is not determined by how much it costs to get it out of the ground. It is based, in large part, on how much it is believed it will cost to get it out of the ground in the future.

The other objection was often, "It will take us ten years to realize the first drop of oil from any new drilling operations."

That, too, was a lie. If the oil companies had gotten the green light, they would already be producing new barrels of crude today. They can do that. Yes, they can.

Besides, if the ten year mark were true, we'd be that much closer to it today than we were then.

Here are the facts about oil availability in the US.

According to our own government, North Dakota and Montana have an estimated 3.0 to 4.3 billion barrels of technically recoverable oil in an area known as the Bakken Formation.

"It is clear that the Bakken formation contains a significant amount of oil - the question is how much of that oil is recoverable using today's technology?" said Senator Byron Dorgan, of North Dakota. "To get an answer to this important question, I requested that the U.S. Geological Survey complete this study, which will provide an up-to-date estimate on the amount of technically recoverable oil resources in the Bakken Shale formation."


The USGS estimate of 3.0 to 4.3 billion barrels of technically recoverable oil has a mean value of 3.65 billion barrels. Scientists conducted detailed studies in stratigraphy and structural geology and the modeling of petroleum geochemistry. They also combined their findings with historical exploration and production analyses to determine the undiscovered, technically recoverable oil estimates.

("Technically recoverable," in this context, does not mean that it could be recoverable, it means that we presently have the technology to recover it.)

USGS further states that in order for oil to be economically extracted from the Bakken fields, it must cost about $50.00 per barrel. With oil currently at well over $100.00 per barrel, are your math skills high enough to realize that we passed that $50.00 level long ago?

In the "sacred," though minute portion of Alaska called ANWR, according to US Geological Survey, ANWR contains up to 9.2 billion barrels of oil. The entire coastal plain has up to 29.4 billion barrels of recoverable oil.

Some estimates put the amount higher. According to them, "...economically recoverable oil ... including reserves growth in known fields, is 35 to 36 billion barrels."

Add to that current oil reserves in Texas where less than a third of the 190 billion barrels of oil available have been produced, and the rest of the states where oil is found as well as the oil available off-shore, and we have enough oil to be come totally independent of Middle Eastern oil for the next 100 years, which would give us time to develop alternative energy sources the right way, instead of the mistake-filled way it is being done now.

Given this information, what conclusions would you draw as to why President BO and his cohorts in the Congress and Senate resist going after the very oil that would make us independent of foreign oil, if that's what they really want us to do?

Consider, in addition to all of that, the fact that oil is being produced in South America, Russia and China, all of whom have significant technically available oil, and the world supply of oil becomes immense...something that should be lending itself to reducing the price of oil globally were it not being artificially kept high by such organizations as OPEC.

Remember, the electric car thing is not a solution anyway, because it only addresses the reduction of oil used in vehicles (and does not address trains, buses, trucks and other commercial uses of carbon based fuel), and ignores the hundreds of thousands of other things made from oil including the exterior and interior components of electric vehicles!.

This whole "green energy" thing is a total farce. Everywhere it has been tried it has failed, mostly because we are not technically ready for it.

It is time to contact your congressperson and urge him/her to get on the ball and let's get this oil need satisfied while we have the chance to do so.

It will buy us the time we need to properly seek and develop alternatives.

20 comments:

David Wyatt said...

As per usual, bro. Joe, excellent article. I get so frustrated at our government when I think of this. It is a no-brainer that we should be drilling HERE rather than being dependent on oil from those who would love to blow us off the map. God Bless.

Joe said...

David Wyatt: Thank you. I get frustrated as well. We have what we need, but it is against the law (or policy) to get it...thanks, in part, to extreme environmentalism and politics.

Mark said...

I'd like to invest in alternative energy, but I can't. I've spent all my money on gasoline.

Joe said...

Mark: I know what you mean. The price to go to work has doubled. Funny thing: my salary didn't double.

Ducky's here said...

Hmmm, so when it was $4.50 during the Chucklenuts administration the same dynamics must have been in place, no?

There must have been some massive discoveries to bring the price back to $2.50.

Or is your musing just so much smoke? I vote the latter.

Joe said...

Ducky: I was sure you would.

As noted in the article, the amount of oil available is presently controlled by OPEC, so THEY control its price.

We need to supply our own oil so we will not be at their mercy.

But you already knew that...you just like to be contrary.

TheFreedomFighter said...

In my town we have gas prices approaching $5 per gallon and we are being told that it may very well exceed $6 by this summer. And what is Obama doing about it? Nothing. He thinks that since he tricked Donald Trump he is on top of the world. Personally I think that Obama is up to some sort of trickery.

Joe said...

TFF: I wouldn't doubt that for a minute!

Ducky's here said...

No Joe, world demand, the value of the dollar, refining costs, commodity speculation all play a big part.

You and your fans remind me of the fringe right screaming there weren't enough generating stations in California when Exxon was hosing them down.

For your next act, you and your fans will explain why oil drilled in America won't be sold at world prices. By the way, only about 15-20% of our oil consumption is mid-East. But keep going for the simple answers.

Ducky's here said...

Fact is "freedomfighter" that NOTHING can be done short term except drive less.

Joe said...

Ducky: "only about 15-20% of our oil consumption is mid-East."

Doesn't matter. If we were producing, we wouldn't have to import from South America, China, Europe or anywhere else.

You are right about short term...there is little we can do except make the Middle East and South America happy with us.

Unlikely, at best. They hate us.

Lone Ranger said...

Life must be great in Liberal Land. You just believe what you want to believe and don't have to deal with those inconvenient facts.

Joe said...

LR: Liberal Land is a fairy tail existance.

TheFreedomFighter said...

So what really made Obama release birth certificate?
Was it a coincidence that it was done right before the story of his Father being kicked out of Harvard and out of the United States? Maybe he was afraid that Trump was going to jump the gun and tell the story first?

This is just starting to become fun folks. I think that even if Trump doesn't run...he’s not going to just go away. Get the pop corn ready, the show is just starting.
Donald has the "O" by the balls and he’s starting to apply the pressure. .

Ducky's here said...

Why did he release the birth certificate? Play a little inside baseball and it's probably a move to encourage Trump and keep that moron out in the light.

Erodes centrist support for the right wing as long as that dipstick is opening his mouth.

Teresa said...

Great post, Joe!

No "green" energy! This will be like kryptonite and will hurt America. That will kill our economy. Obama hasn't even put a moratorium on gas taxes. At least Bush did that. Plus, the Democratic Congress are the ones who denied Bush the ability to drill for oil offshore and many onshore places. The last few lines were actually a reminder to @Ducky.

Lone Ranger said...

About that birth certificate.

Joe said...

LR: I watched with interest. I know nothing about Adobe Illustrator, so I have to depend on the "experts."

Ducky's here said...

Joe, oil's down nearly 20%(and falling) in the last week and there haven't been any announcements of increased supply.

What's happening?

Ducky's here said...

$96 and dropping and we didn't do any new domestic drilling.

Come on Joe, explain this. Admit we didn't have a supply problem and you and the peanut gallery were flat out wrong.