Saturday, December 4, 2010

Peak Oil

Recently I spent a fantastic family Thanksgiving dinner an intriguing matter was brought up. Peak oil. As I found myself surrounded by Democrats in the liberal turf of Conneticut, the only thing peaking was my curiousity. Eyes at the table were beaming, like the Christmas tree lights outside in the distance. In light of the circumstances (my first Thanksgiving Day with the girlfriends family), I respectfully kept silent. However my mind was racing to create my next blog piece to counter the frustration that was developing.

Pundits have long been predicting "Peak Oil". Incorrect forecasts of its demise have been spread since oil drilling began in Titusville PA in 1859. As early as 1914 our own Bureau of Mines Department claimed we had little more than 10 yrs before the country would exhaust all of its oil reserves. The U.S. Interior Department in 1939 and 1951 declared oil would vanish in 13 years. Jimmy Carter himself made the unbelievable remark that the entire globes oil supply would not last past 1990. What all these experts never factored in were the technological advances that would evolve to dispel their doomsday scenarios.

In 2006, Brazil had a mega discovery with its Tupi Field. Known as probably the greatest find in 30 years in this hemisphere, Brazil is now on the brink of becoming energy independent. The oil field potentially can yield 100 billion barrels of oil. Closer to home the locating of the Tiber Well in the Gulf of Mexico in 2009 was a massive unearthing. U.S. Geological Survey estimates that the Alaska regions' Chukchi Sea can hold more than 80 billion barrels of oil. In the continental U.S. we have enormous reserves that are going untapped. The Green River formation in the Northwest U.S. holds almost 2 trillion (not a typo) barrels of crude.

Over 200 new oil discoveries were reported in 2009 alone. Not to mention gigantic finds in natural gas. Right here at home we have a 100 year supply of natural gas. Thanks to research and development we have the technology to drill these resources and declare our own energy independence. In the process creating sorely needed, well compensating jobs. Why cant we take the example from Brazil and not have to rely on dangerous regions of the world to supply us with what we have right here at home. Political interference which leads to excessive amounts of red tape is my educated guess.

I am for the continued advancement of all alternative energy sources. However oil must be the dominant means of any realistic energy conversation. In the continental United States where we have some of the most intrusive regulation on the planet, oil production increased for the first time in. This is a testament to the creativity and ingenuity of the American energy industry. There is an old adage on Wall Street. Stocks dont lie. People do. I am going to substitute numbers for stocks. And the numbers certainly are not lying regarding peak oil. Oil is being found in more places that we thought imaginable. Let us find and recover it to give ample time to make the transition to other alternative energy means.

Now am I suggesting my future aunt was fabricating her belief in Peak Oil. Of course not. Just the source of her facts attempting to establish a hysteria. The elite media at work embellishing the situation to their benefit. Surprised? I would expect nothing less.

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