The key to understanding the Obama lie is to understand reserve growth (R/P = reserves/production): "A case in point is the United States, the world's most mature oil province. At the end of 1973, during the first oil crisis, the US had proven oil reserves of 35 billion barrels, giving it an R/P ratio of 10 years and a depletion rate of 10% a year, provided no new oilfields were discovered thenceforth and no oilfield extensions and revisions were made either. At the end of 2005 the US had proven reserves of 21 billion barrels with an R/P ratio of 11 years, yet had produced in the meantime no less than 86 billion barrels of crude oil!" http://www.theoildrum.com/story/2006/8/29/171650/847 These are facts that the POTUS does not want the public to know, and probably doesn't know himself. If the 1973 reserve estimate had not experienced reserve growth then we would already be out of domestic oil. Just like the 2011 reserve estimate is going to experience reserve growth IF the federal lands are opened up to exploration. As gasoline prices climb higher it is essential that the message get out that it is the fault of an ignorant administration that has intentionally crippled our oil and gas industry. Here is a good explanation of the reserve growth concept (PDF): Reserve Growth Effects on Estimates of Oil and Natural Gas Resources
Don’t forget, more production lowers the price AND most countries are already spending most of their oil profits on keeping the unwashed masses quiet and prevent revolts. If the price of oil goes down the third world Hell holes will have to pump more oil to be able to support the same level of local spending.
posted on 03/17/2012 10:55:08 AM PDT
Thats because, as weve noted before, the idea of energy independence is something of a misnomer. Energy is traded on a global market, not compartmentalized by nation.
Thats true but its also neither here nor there.
Every barrel we produce is a barrel not purchased from overseas.
Every barrel produced means Americans who are working, and it means royalties and taxes paid into the national treasury and local tax bases instead of Nigeria's treasury, or the Saudi treasury.
A half trillion dollars a year spent bringing in oil from abroad is a half trillion that could have been spent putting your neighbors to work. When neighbors are working they are buying cars and clothes and houses putting more of your neighbors to work.
Oil from Canada would come down through a pipeline built by American workers and staffed mostly by Americans and itself paying royalties and taxes all along the line into local tax bases. It also opens up another means of getting Bakken oil to market.
If you want zero unemployment, you have to follow the North Dakota model, which is to drill, baby, drill.
posted on 03/17/2012 2:21:16 PM PDT
the idea of energy independence is something of a misnomer. Energy is traded on a global market, not compartmentalized by nation.
Either way, it's money that won't be leaving the country.
posted on 03/17/2012 6:45:50 PM PDT
(I guess Newt is the best choice of the lot right now.)
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