Free Markets, Free People

petroleum reserves


Anyone–who is the number 3 oil producer in the world?

This may surprise you, but it is the US.  In fact, it probably does surprise you,  given all the whining about our dependence on foreign oil.  You’d think that we were a poor nation when it comes to petroleum resources and the amount we import.

Quite the contrary.  And you’d think that it would be in the best interests of the US to exploit its resources to a) give us a larger percentage of secure oil and b) employ oodles and bunches of Americans in an industry that has some pretty good and high paying jobs.

You’d think.

First the news:

The study released Thursday by the National Petroleum Council, a collection of industry, academic, government and other officials convened by the secretary of energy, touted how advanced technology has unlocked vast formations of natural gas previously deemed uneconomic to tap.

But the report also said the same drilling and production techniques that opened up shale gas – combined with success in the deep-water Gulf of Mexico, the Canadian oil sands and even surges in conventional oil onshore – are improving the nation’s potential to be more self-reliant for oil, according to the report.

"Contrary to conventional wisdom the North American oil resource base also could provide substantial supply for decades ahead," the report said.

FYI, this isn’t just some industry group turning out reports that favor drilling. 

The National Petroleum Council, a collection of industry, academic, government and other officials, convenes several times a year to gather information, give advice and issue reports on topics for the secretary of energy. The most recent report was a 2007 study on global energy supply and demand.

In 2009 Energy Secretary Steven Chu asked the group to look at U.S. natural gas and oil resources based on four concepts: economic prosperity, environmental sustainability, energy security and prudent development.

Optimistically, the Council believes that the US and Canada combined could produce 22.5 million barrels a day when the new resources are added in.  Secure oil.

And, if we’d just get to work and try to tap these assets, Goldman Sachs believes we’ll surpass Russia and Saudi Arabia as the largest oil producer in the world by 2017:

And earlier this month, Goldman Sachs said in a note to investors it expects the U.S. – now the No. 3 oil producer behind Saudi Arabia and Russia – to take the top spot by 2017.

This, given the current economic (and political) conditions, should be a no-brainer, shouldn’t it?

Well shouldn’t it?

~McQ

Twitter: @McQandO

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