Monday, 12 December 2011 00:00

Current Crude Prices Make Drilling Profitable

Can America become a crude oil exporter on the global market?

Across the United States are discovered enormous reserves of natural gas and crude oil. Novel exploration and exploitation technologies, such as fracking and horizontal drilling, are not cheap. However the high price of oil, around $100 per barrel, makes the new expensive techniques very profitable. Which means that oil deposits scarcity is not a factor in the US. 

"There were always known to be additional untapped reserves of oil and gas in the petroleum-rich Gulf of Mexico, off America's shores, and in the American West and Alaska. But even the top energy experts never imagined just how vast was the energy there -- or beneath far more unlikely places like South Dakota, Pennsylvania, Ohio and New York. Some studies suggest the United States has now expanded its known potential gas and oil reserves tenfold."

During the twentieth century, when America and its economy expanded to world dominance, the nation was energy independent. With the new discoveries entering full exploitation, the US will shortly have the capacity to cover the domestic needs of natural gas and crude oil, and even keep that way for the following 90 years at the current rates of consumption. America is already a net exporter of refined natural gas and diesel fuel. The US imports of crude oil from OPEC countries have been cut by 1 million barrels per day.

"With expanded exploration and conservation, the United States could also eventually supply half its own petroleum needs. If we were to eliminate just 5 million barrels of our current daily 9 million barrels of imported petroleum, the annual savings could reach nearly $200 billion per year. Eventually, the new gas and oil could add another 1.6 million new jobs and add up to nearly $1 trillion in federal revenue."

The US is currently depending on energy imports from distant and unstable regions, facing a daunting double digit unemployment (on the rise) while subsidizing unrealistic green energy experiments, along with producing bio-fuels from corn ethanol only to artificially rise the prices of food. All this time, America remains in the position to cover its energy needs from domestic deposits, to create many new jobs, to increase oil and gas exports. However, the current Administration does everything in its power to hinder the legitimate and common sense course of events for America to become an oil exporter on the global market. 

"In the current presidential campaign, three issues dominate: national security, fiscal solvency and high unemployment. Development of America's vast new gas and oil finds addresses all three at once."

Source: townhall.com - Oil-Rich America?


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