I’m a bit shocked that NBC would put this out. But, maybe it’s a call to arms for the nutters. I’m very glad, though, that people are beginning to see the huge potential the US (and our friends to the north) has.
The story is a lengthy one, but worth a read if you aren’t aware of all the oil and gas we’ve found.
Politicians have been warning for decades that the U.S. must wean itself from foreign energy, but just a few years ago their words seemed like so much wishful thinking: The U.S. was facing what seemed like ever-rising oil prices and was importing about 60 percent of its supply. Natural gas inventories were shrinking, and the country was considering importing a liquified form from the Middle East.
But in a turnaround that industry insiders describe as nothing short of amazing, the picture has drastically changed. Oil and natural gas drilling is now booming in places like Eagle Ford, Texas, and the Bakken formation in North Dakota, bringing jobs and prosperity to those regions. And believers say the newfound resource is so much bigger than anticipated that it can help drive economic growth nationwide for years to come.
It can, and it will be the driving force of the US economy and energy sources world wide, if the nutters would just get out of the way. The new technology with the application of older techniques have opened up enormous amounts of oil and gas. The article has a brief explanation of the horizontal drilling and hydraulic fracturing.
Now, I’ve no doubt they will try to paint this as alarming or even harmful in the very near future…..
In a four-part series starting Monday and continuing over the next three weeks, NBC News and CNBC will examine how this boom occurred almost overnight and look at the implications that U.S. energy independence would have for the U.S. economy, other types of energy, foreign policy and the environment.
Still, for rational people, this should be the beginning of the end for the CAGW nuts. The fact is, this nation, indeed the world, has real problems to deal with instead of the imaginary ones the climate nuts invent.
That has led to forecasts that once sounded far-fetched becoming reality: U.S. oil wells produced 6.4 million barrels of oil per day last year – the highest domestic production level in 20 years — and are expected to yield 7.3 million barrels per day this year, according to the U.S. Energy Information Administration. The EIA recently increased its forecast for U.S. oil production to 8 million barrels a day by the end of next year.
“One thing I can say with absolute certainty…is that our long-term forecasts are going to be wrong,” Adam Sieminski, EIA administrator, said in a recent speech. “It looks like the direction we’re going … on oil is there’s going to be more of it.”
Reality wins out.
“The view I have is the U.S. will be a lot less dependent with Canada,” said Yergin, who also is CNBC’s global energy analyst. “That will really reduce imports, combined with more fuel-efficient cars, reduce exports from outside North America. We’ll still be importing some but it’s certainly a rebalancing of global oil. That oil that was coming to the United States will go somewhere else and that somewhere else would be Asia.”
Imagine a world that isn’t starved for fuel!
Since 2006, U.S. oil field production of crude, plus natural gas liquids and bio-fuels has grown by 3 million barrels a day, about the same as the total output of Iran, Iraq, or Venezuela. In the same period, Canadian production has grown by 510,000 barrels a day.
Citigroup analyst Edward Morse said in an interview that the U.S. could in theory need to import only from Canada within five years.
On to nat-gas……
Thanks to the new drilling techniques, an estimated 2,200 trillion cubic feet of recoverable natural gas in the U.S. – or a century’s worth — and billions of barrels of oil are now believed to be locked in rock formations, spanning from California to Pennsylvania, according to the EIA.
And, I still think they’re underestimating our oil reserves……
“At current consumption rates, the data suggests the world has 54 years’ worth of proved oil reserves and 64 years’ worth of proved gas reserves in place, and more will be found,” he said in a recent speech.
But a little later in the article……
Stark, like others in the industry, said it’s difficult for drillers to know just what they’re going to find. But in many cases, he said, wells are producing more than anticipated. For example, Stark noted, he estimated last year that the Three Forks area in the northern Bakken Shale had one reservoir. “Now it looks like an additional two or [three] lower reservoirs are also yielding commercial production,” he said, noting that could mean an additional 5 billion or 6 billion barrels.
That’s just one area. I believe we have well over a century’s worth of oil.
While oil drilling is booming, the industry has reined in domestic natural gas production in recent years because the price is depressed, trading as low as about $3.60 per million BTUs on the NYMEX recently, way below its record high of more than $15 per million BTUs in 2005. But many experts say that will change quickly if the price starts ticking back upward or the costs of drilling decline, as anticipated by some industry forecasts.
The article has countless angles and interesting points to be made. I’d encourage people to read it in its entirety, but I’d like to point out one more thing from the article…..
Morse, head of global commodities research at Citigroup, credited independent oil and gas drilling companies with pioneering the rapid growth of the industry in the U.S. and Canada.
“The cost of entry is unbelievably low,” he said. “… What distinguishes this kind of drilling from drilling in deep water is a combination of factors, including the cost of the well. So the well, instead of being a $100 million, may be as little as a million, or as much as $10 million. If you’re looking at an offshore circumstance, development requires $50 to $60 dollars a barrel of oil, but (these operators’) costs are very low — $10 or $15 a barrel.”
Prosperity is within our grasp. The time to act is now.
Turn it on, turn it up, and turn it loose!