Thursday, June 19, 2008

US Massive Oil Deposits Could be 10x Increase to Supply

Massive Oil Deposit Could Increase US reserves

America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation
in North Dakota could boost America’s Oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant.

Among Biggest Oil Finds in USA - Montana & North Dakota

The USGS did an initial study back in 1999 that estimated 400 billion recoverable barrels were present but with prices bottoming out at $10 a barrel back then the report was dismissed because of the higher cost of
horizontal drilling techniques that would be needed, estimated at $20-$40 a barrel.

Because of past failed policies, even if we can get this oil out of the ground, where are we going to refine it? We have not built a new oil refinery since the Marathan Ashland,s Garyville, Louisiana plant, which was completed in 1976. There are plenty of reasons gas cost so much, but one of them is that the United States doesn't have enough refineries.

Now the call is for alternative energy. And the Democrats say that we don't need to drill but to conserve or use alternatives. This is not a new idea. If you lived through the 1973 oil crisis than you know we did everything to conserve energy. The energy crisis of 1973 led to greater interest in renewable energy and spurred research in solar power and wind power. You need to go to the Wikipedia 1973 oil crises site and see what we did. The truth is that the U.S. government response to the embargo was quick but of limited effectiveness.

This is one issue that sharply divides Democrats and Republicans. Virginia Senate candidate Mark R. Warner, Democrat, said " "We could drill everywhere from here to New Jersey, and it's still years away and will only add about 140 days of oil supply to this country." My question to Mark would be, " Why would the oil companies spend million of dollars for just 140 days of oil?"

His GOP opponent, James S. Gilmore III, has made drilling in the Arctic National Wildlife Refuge and off the East Coast, including Virginia, a central focus of his campaign, casting it as the only plausible solution for reducing the price of gas.

My question: Is this the beginning of the 2008 oil crises? What have we learned in the past 25 years? Not much! We have hindered the growth of our oil industry and still don't have any large scale alternatives. Democrat's solution; Blame everyone else. Republican's solution; Drill now. Which side are you on?

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