Comments on: The New York Conservative Party on Drilling http://deregnochristi.org/2008/06/12/the-new-york-conservative-party-on-drilling/ The Reign of Christ Sat, 22 Nov 2008 06:53:00 +0000 http://wordpress.org/?v=2.6.2 By: Josh M. http://deregnochristi.org/2008/06/12/the-new-york-conservative-party-on-drilling/#comment-3108 Josh M. Thu, 26 Jun 2008 11:23:09 +0000 http://deregnochristi.org/?p=445#comment-3108 MarkPele, to my knowledge, no government entity is restricting drilling in the Bakken field (the 400-billion barrel field). And as it turns out, there aren't 400 billion barrels. http://www.cnsnews.com/ViewBusiness.asp?Page=/Business/archive/200806/BUS20080618a.html MarkPele, to my knowledge, no government entity is restricting drilling in the Bakken field (the 400-billion barrel field).

And as it turns out, there aren’t 400 billion barrels.

http://www.cnsnews.com/ViewBusiness.asp?Page=/Business/archive/200806/BUS20080618a.html

]]> By: onefear http://deregnochristi.org/2008/06/12/the-new-york-conservative-party-on-drilling/#comment-3101 onefear Tue, 24 Jun 2008 19:26:13 +0000 http://deregnochristi.org/?p=445#comment-3101 Excellent. Let's start drilling in Canada. :) Excellent. Let’s start drilling in Canada. :)

]]> By: MarkPele http://deregnochristi.org/2008/06/12/the-new-york-conservative-party-on-drilling/#comment-3099 MarkPele Tue, 24 Jun 2008 15:18:31 +0000 http://deregnochristi.org/?p=445#comment-3099 We're not forcing the companies to drill it, we're merely opening it up for exploration. Why are we against letting the free market deal with the problem just because we think we know exactly what will happen? It's possible that companies are investing in oil as a hedge because they know the global supply is getting locked up. Having a huge unknown amount of American oil sitting in the ground ready to be tapped if the market conditions are favorable may possibly drive away the hedge funds. It's also quite possible that at some point the hedge fund algorithms will cause the perfect storm and ultimately crash the global oil market, bringing back sanely priced gasoline. This happened in early 2007. We’re not forcing the companies to drill it, we’re merely opening it up for exploration. Why are we against letting the free market deal with the problem just because we think we know exactly what will happen?

It’s possible that companies are investing in oil as a hedge because they know the global supply is getting locked up. Having a huge unknown amount of American oil sitting in the ground ready to be tapped if the market conditions are favorable may possibly drive away the hedge funds.

It’s also quite possible that at some point the hedge fund algorithms will cause the perfect storm and ultimately crash the global oil market, bringing back sanely priced gasoline. This happened in early 2007.

]]> By: Josh M. http://deregnochristi.org/2008/06/12/the-new-york-conservative-party-on-drilling/#comment-3093 Josh M. Thu, 19 Jun 2008 16:42:49 +0000 http://deregnochristi.org/?p=445#comment-3093 400 billion barrels sounds nice, until you realize the costs and logistics of getting it out. It's going to require horizontal drilling technology that's either a very high cost to operate or not yet developed, plus the rock formation is porous and permeable. They're likely to recover only a small fraction of that 400 billion (15% would be good). Then when you realize that the U.S. consumes 7.6 billion barrels a year, it doesn't look like all that much. Yep, that 7.6 billion a year. At that consumption rate and given the reserves you cite, assuming we can use them all, we're still not even close to being "oil rich America." That's in spite of the recent media blitz about this subject. For how long can we really be "energy independent"? A decade or less? 400 billion barrels sounds nice, until you realize the costs and logistics of getting it out. It’s going to require horizontal drilling technology that’s either a very high cost to operate or not yet developed, plus the rock formation is porous and permeable. They’re likely to recover only a small fraction of that 400 billion (15% would be good). Then when you realize that the U.S. consumes 7.6 billion barrels a year, it doesn’t look like all that much.

Yep, that 7.6 billion a year. At that consumption rate and given the reserves you cite, assuming we can use them all, we’re still not even close to being “oil rich America.” That’s in spite of the recent media blitz about this subject.

For how long can we really be “energy independent”? A decade or less?

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