Skip to comments.A US Oil Boom--Unless Greens Abort It. USA is on the Verge of a Golden Era in Oil Production.
Posted on 07/15/2011 7:15:52 AM PDT by SeekAndFind
Just a year after the BP oil spill, America is on the verge of a new golden era of oil exploration and production -- unless President Obama and his environmentalist friends get their way.
This surge in domestic production would leave Iran, Kuwait and the Arab emirates combined in the rear-view mirror.
The US drilling boom rests on a technique called hydraulic fracturing, or fracking, to open shale-oil reserves. It's why wells are springing up in places like North Dakota, California and Pennsylvania, with thousands of new jobs in their wake.
Fracking has also opened up supplies of natural gas, sending prices plummeting. Now, even New York's regulators have recommended lifting the state's ban on the fossil-fuel gold rush that's pushed North Dakota's unemployment rate to 3.2 percent -- the lowest in the nation.
The irony is that Obama had hoped higher oil prices would make us all drive electric cars and install backyard windmills. Instead, they're making it profitable for US companies to expand the hunt for new reserves and to use fracking to reopen old ones.
Just last month, Exxon-Mobil announced the discovery of a vast field in the Gulf of Mexico, with as many as 700 million barrels waiting to be tapped. Other companies are using fracking to return to the Texas basin, the center of US oil production in the 1930s -- which will mean millions in investment and thousands of jobs for that state. Montana and North Dakota are sitting on a shale-oil formation that could yield nearly 4 billion barrels.
Not many Americans realize we are already the world's No. 3 oil producer, at 7.5 million barrels a day. The coming boom should add another 1.5 million by 2015. That's closing in on Saudi Arabia's daily total.
And oil-shale rich Canada could surpass Iran's barrel-per-day output in a few years -- so we're looking at a major shift in the geopolitics of oil.
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We use 22 million bbls of oil a day.
BIGGEST IMPEDIMENT TO ENERGY SELF-SUFFICIENCY -— BARACK OBAMA AND THE DEMOCRATS.
1) Obama has had the oil industry’s two most important tax incentives — the percentage-depletion allowance and the deduction for intangible-drilling costs — in his cross hairs for a long time. Both help oil and drilling companies recoup the heavy capital investment they need to look for oil, even when they turn up nothing.
2) Reid and Pelosi argue that we must end both “tax breaks for Big Oil” to close the budget deficit.
The notion that scrapping tax abatements that have been around since the 1920s will put a dent in a deficit of $1.4 trillion is laughable — and dangerous.
This is so true. And this article doesn’t even go into the South Texas stuff.
Unemployment in ND is like 3% because of this oil renaissance.
My hope is that that this is simply too large and moving too fast for the Eurofagsocialistenviromentalists to stop it.
This is our lifeline to the future, America!!!! In so many ways!!!
Good things come in threes.
Drilling, mining and logging are wealth multipliers.
Drilling, mining and logging are wealth multipliers.”
The politicians (on both sides) will prevent it.
FRACK BABY FRACK
It is unbelievable all the money that is being made in South Texas with fracking....it is huge.
RE: The politicians (on both sides) will prevent it.
BOTH SIDES? Which influential GOP leader is going to prevent it?
Thanks SeekAndFind. Every barrel not sourced from OPEC is money not handed over to mortal enemies.
Is Exxon-Mobil working behind the scenes to unseat Barky, or do they like him because he creates high oil prices? I never hear a peep out of them, but that’s probably by design. The pharmaceutical industry used to mostly give to Republicans until the ‘crats shook them down mafia-style. Corporations have to keep a low profile politically, act in stealth mode, unless they are socialists like the media or fascists like GE. Republican politicians should learn from the Democrats and give leftist corporations a few “deals they can’t refuse”.
I got “fracking” mixed up with “witching.” Had to look it up.
This is largely absurd silliness in this article.
The US produced 8.9 million barrels per day of oil in 1985, and that was proper crude oil, NOT ALL LIQUIDS. (All oil is not created equal. Crude oil has 5.8 million BTUs/barrel in it. All Liquids is Crude plus lighter fractions and those have only 3.7 million BTUs/barrel in it, meaning much more of them have to pour into a refinery to get a gallon of gasoline out).
NGLs (these lighter fractions, like propane, butane etc) are now being added to the crude numbers to frankly make the numbers look better. US crude oil production . . . of the proper crude sort, is now 5.5 million barrels per day.
Most of this “shale oil” is NGLs. It’s bogus. It creates jobs, yes, but it’s not The Golden Age of Oil Production. This person doesn’t know what he’s talking about.
The US is well past its peak of oil production.
That map must drive the environmental left to distraction. It’s a map of their worst nightmare.
The Left wants to strangle the golden goose. Fry it up and throw it away.
Then they would like to follow in the footsteps of their glorious hero Stalin and have a few million of us starve to death. Not that they’d admit it, or even think that far ahead to come up with that conclusion, but their green ways will certainly lead us to economic ruin and shortages of every kind.
Prosperity is under our feet.
Practically speaking, with conservatives of the Tea Party variety in congress, the goal should be unleaded gasoline at $1.20/gal, with 20 cents of that going solely to highway maintenance.
Years ago, corruption in those companies that provide highway maintenance came to the fore, when the Phillips Petroleum corporation invented a road bed liner much like Kevlar. It was expensive, but when a road had such a liner, it would be very low maintenance, and would last four or five times longer than a typical road.
The highway maintenance companies refused to use it, with both the companies themselves and their unions lobbying fiercely against it, as they had an unlimited spigot of federal money otherwise, to produce shoddy roads that would need annual repair.
Thus America got crappy roads, and these companies and their unions made windfall profits from making and fixing them.
“Then they would like to follow in the footsteps of their glorious hero Stalin and have a few million of us starve to death. Not that theyd admit it...”
They do admit it, PATRIOT, but you need to hang out at the “deep ecology” sites to read it. There’s a fellow who infiltrated the eco-fascists and wrote a book. Can’t think of his name now. But eco-fascists do indeed want to murder you and your children. They are all philosophical descendants of Hitler’s Eizengruppen but without the guts to act on their hate-filled rhetoric. One day, we may need to hunt down these Nazi cretins and kill them.
This would be a huge boon to the U.S. economy once the oil gets extracted. The downside is that it’ll take a while for the oil to actually reach us.
Last week, it was announced that the Chinese have purchased a shale oil and gas lease in the Powder River Basin.
I’m just guessing but natural gas is quicker isn’t it?
I don’t believe its the most economical fuel source for cars but its fine for heating which is also killing us.
**The irony is that Obama had hoped higher oil prices would make us all drive electric cars and install backyard windmills.***
Lets see, they can declare all new oil and gas fields to be sacred indian burial grounds used by endangered cumquat lizards and piddle fish. that should put a stop to it!
If I had to sum the whole page up in one observation it would be this: the term "biodiversity" is a code word for "radical reduction in Earth's human population."
Business as usual.
Yes Ted Turner is one of them. I have seen different numbers, six, twenty, and two hundred million, as the correct population for the entire world. The hard core eco-freaks want to murder the rest of us in order to reach those numbers. Goes to show what nice people they are.
“Not many Americans realize we are already the world’s No. 3 oil producer, at 7.5 million barrels a day. “
I thought it was 5 million barrels a day.
I would add that our MASSIVE 1 trillion barrel oil shale deposits in Colorado and Wyoming (Green river etc) are the largest oil shale deposits in the world. We are the Saudi Arabia of oil shale.
We havent gone after that because the cost of extraction is high.
So, in your estimation, we shouldn't even bother developing these shale oil reserves?
What should we do, instead?
Absolutely not. That liquid doesn’t help anyone underground. My objection is to the headline’s almost perverse inaccuracy.
How can you celebrate a golden age when you’re 3 million barrels per day under your peak, and not EVER going to return to that peak? Answer: you should not.
And before you spout liberal kneejerk stuff about “Well, I guess this means you think I should drive a smaller car” try this on for size.
No. You should not. You should not drive a smaller car so some Chinese guy can improve his life because if you’re an American, you want to dominate that Chinese guy, and they way you eventually will have to do it is by depopulating China to the tune of 1 billion people.
That’s your choice. Starve, or kill, because make no mistake about it, the trucks that bring food to your grocery store shelves do not and never will run on propane.
Good to hear it.
Your post was so negative, it suggested we shouldn't even bother to develop those reserves. Or even attempt to become energy independent.
I couldda sworn you were gonna say "We've got to go Green; it's the only way."
Glad I was wrong.
Just so long as you sign onto mass murder, because that’s the only solution. The history books will forget it after a few decades, so no problem. And we will be riding horses to town regardless of what happens.
What about CNG? Compressed nat gas?
North Dakota and California have been producing oil for a long time, and the first US oil well was in Pennsylvania.
Did this author do any research?
Yes, fracking is contributing greatly to the 'boom', mainly because it enables us to produce formations we have only rarely been able to produce economically in the past
Yes, America, there were conventional, vertical wells in both the Bakken and the Three Forks (Sanish) before the advent of horizontal drilling, but in most places, the formation permeability was too low to pay out. The oil was there, but now we can get it without the hit-and-miss of vertical wells.
We are looking at a potential shift in the geopolitics of oil, but in order to keep that going, we have to have access to our own resources. Government hasn't led, it won't follow, and it won't get the hell out of the way.
Where’s that awesome
“Drill GAIA like a drunken prom date”
sticker somebody had up on FR last month?
I lost it.
Crude oil is what it is for very powerful reasons that deal with pure physics. It contains 5.8 million BTUs per barrel.
Natural gas at room pressure is 1/1000th of that amount — 5.8 thousand BTUs per barrel.
Yes, compressing that will cut the 1/1000th number, but not by much at all. Have a look at Honda’s Civic that runs on compressed natural gas. No, HAVE A LOOK at it, carefully. Very carefully past the hype.
It has no trunk. They had to use the trunk area for fuel tank. And even after they did that, they still only manage about 1/3 the range of a conventional gasoline Civic on a single tank of fuel.
Another little absurdity in the numbers games played by the industry. There is the always popular “We have XXXXXX years of natural gas!!!”
Well, you have that much if you 1) can hit your hugely optimistic recovery ratios 2) you have that much if you don’t count the extra consumption that would occur if you tried to make CNG a defacto norm of US cars. If you DO count it, you have about 10 years (because of that crushing BTU differential) 3) Compression is dangerous.
Everyone has their own little underlying theory of why things have fallen apart. They want to immerse themselves in the intricacies of quantitative easing and credit default swaps, but they are wrong, in my opinion.
The reason the engine doesn’t run anymore is the fuel supply is choking off. There is absolutely nothing that can be done about this. Billions of people are going to die, and soon. Our role is to try to arrange so most of them are not Americans.
Thank you for your reply. However you are wrong. CHK is committing 1 Billion $$$ to the infrastructure for Nat Gas filling stations. Westport has signed agreements to help GM and Ford develop NG motors. Cummins is already building NG engines for the Big Rigs. NG is much cheaper per mile and burns so much cleaner. In two years you will be able to buy and fuel a NG vehicle. Then the marketplace will decide. Until then we should defund the DOE as useless as teats on a boar hog.
Make that three years. 2014. Off by a year.
Stimulus funded that infrastructure and it’s gone. And will stay gone.
I disagree that the marketplace will decide. That’s wrong. Physics will decide.
You can’t carry frozen meat from Iowa to NYC on an 18 wheeler that has to stop every 35 miles to refill a nat gas tank. The nat gas buses and trucks you hear about in California are carrying things from point A to point B when the points are 10 miles apart.
It’s not infrastructure lack. It’s physics.
Chesapeake Energy is funding the infrastructure with its own money. They haven't started yet. It was just announced this week.
"You cant carry frozen meat from Iowa to NYC on an 18 wheeler that has to stop every 35 miles to refill a nat gas tank."
You're going to have to start closing your eyes because Cummins is building the engines now to start the
10 mile convoy trucks that will haul produce and commodities soon.
Okie doke. I guess they’ve found a way to undo F=ma.
Look forward to seeing that. Building engines for trucks, sure you can do that. Refill them every 35 miles? Well, you can avoid that — provided the fuel tank occupies all the payload space.
I understand concrete works pretty well, and it isn't expensive...Just put a layer of asphalt on top of it.
America got crappy roads
I'm in Maine...America has no idea what crappy roads look like.
I thought about the windmill since Obama started mouthing about it but found this disturbing article
So, you are an "The World Will End Next Friday" enviro, after all.
On the contrary. Has nothing to do with environmentalist whackos, about whom I care nothing.
It has to do with mathematics and that which is inevitable.
The mechanism will be China’s grab for the Senkaku Islands, under which there is oil. Japan will not tolerate it. They will fight, and they will call in their IOUs with the US treaties.
This will provide the perfect pretext to nuke the “debarkation ports” along China’s east coast, where 80% of their population happens to live. Depopulation achieved, and in a beautiful maneuver of “self defense”.
Many people make this mistake. That which is inevitable is CONSERVATIVE, not left wing liberal. Once one embraces the concept of inevitable, then it is clear that only one path is possible to retain American dominance. We must depopulate China.
If you’re queasy about that, have a look at your kids and sit them down and explain to them that you’re going to let them starve instead of killing some Chinese. If you’re still queasy, you’re not a conservative. You don’t care about America.
Apocalypse. Or Armageddon.
Millions of predictions. Yet, neither has happened.
If it ain't one, it'll be the other, I suppose.
But I'm going to sleep well tonight.
Please ping me if you come across it, and I’ll do likewise. I want that for future use in a couple places.
Right. In 1952 (or thereabouts), the former USSR was considered a "non oil producing country." Then Stalin read a report about ultra deep oil well drilling potential. He secretly began to push the USSR into these ultra deep wells. Today, Russia is the #1 oil producing source in the world, eclipsing even Saudi Arabia.
If you'll look at some of the wells in this country that have been presumed to have run "dry," you'll see that many are actually refilling slowly, albeit at somewhat deeper levels. That is because oil AIN'T old dead dinosaurs and fossil forest material! Oil is ABIOTIC in nature, manufactured and replenished naturally in the mantle of the earth and forced outward by the centrifugal spin of the planet. So called "Peak Oil" (like global warming) is pure fiction.
Who has to gain by propagating this fiction? Well look around. Follow the money and the power. Who stands to gain and who stands to lose big time if the supply of oil is cheap and plentiful? The communists fully understood the nature of power and in keeping it's control over large populations by keeping them hungry, cold and stationary. The vast majority of communists in this country found a home in the environmental movement and extreme fringe groups of that movement. The power brokers of the Democratic Party and their affiliates in the liberal wing of the Republican Party (plus the Greens and other wacko's) channel legislation, regulations and red tape to make functional realization of the plentiful oil supplies impossible. The oil companies are happy to play along since it makes them rich(er). They do their part by not building or expanding the ability to refine here in this country.
Let's also not forget this: The real fuel that powers the economy isn't gasoline, it's DIESEL. Originally, diesel was considered a waste product in the refining process to get gasoline. It is one of the first byproducts created in the process. Why then is diesel fuel so darned expensive? Several years ago, diesel was cheaper than cheap. Now? Exactly. Diesel is the fuel that runs the big 18 wheelers that takes our food to market and every other major commodity to the public for consumption. It takes currently an average of two thousand dollars to fill each and every one of those trucks for each run. Of course they are going to pass those costs on to us. As inflation worries grow and our money becomes worth less and less these concerns are going to grow out of control. That is the operative word here, you know: C-O-N-T-R-O-L! Worthless fiat money, a wrecked economy, no jobs, no gasoline, hyper inflation, spiraling costs all adds up to more control, less freedom and more money to the power brokers.