US Does Not Need to Shoot Itself in the Oil Covered Foot
4th February 2011
According to the Energy Information Administration, offshore oil production is set to decline by 13% in 2011, due to the moratorium recently lifted and the slower-than-slow process of permitting new drilling in the Gulf. The number of new drilling permits is down almost 90% from the average, according to the Heritage Foundation. Shallow water permits are even down by more than 10%.
These recently released statistics are part of the latest set of data for the oil and gas industry which are troubling. With the latest chaos in the Mideast stirring up nothing but a negative outlook for the US relationship with foreign oil, the time is now to talk about independence.
The future of this country’s success in energy depends on it, in many analysts view.
The Obama administration has done few things to secure a favorable future for energy sources here in the US. The moratorium in the Gulf pulled on the reins of an industry until it came to an eventual complete stop. Even though the BP tragedy will probably improve safety procedures and save lives, production in the Gulf continues to suffer. Permits for new drilling are apparently coming at a snail’s pace, according to those close to the industry.
A specialist with the Fox Business Network recently expressed his opinion about the ceiling crude could reach in this period of unrest in Egypt. He claimed that if the chaos affects Saudi Arabia and other Gulf states, oil prices could reach $200 per barrel. A spike of oil to $125-$150 per barrel could be disastrous to a struggling US economy.
The current administration has had its focus on renewable energy sources as part of its energy platform for the country. With the crude oil state of volatility as it stands, wind turbines and solar panels would have to be built at a record pace to even make a small dent in the energy demand of the US.
Some other important facts to consider:
* According to heritage, 85% of US coastal waters are off-limits to drilling.
* The current administration has declared the eastern Gulf of Mexico, and both coasts’ waters off-limits to drilling for the next seven years.
* In the estimates of the American Petroleum Institute, or API, the country is sitting on top of more than 115 billion barrels of recoverable oil. This amount of resources would heat our homes and fuel our cars for about 60 years.
* Also lying below this country is a great amount of natural gas. The approximated 650 trillion cubic feet could heat 60 million US households for more than 150 years.
This group of data does more than put things in perspective. It provides a solution. The US is able to become an independent entity when considering its oil and gas demand. Reliant on foreign supply does not even have to enter the equation. The real question is, who is willing to tackle the environmentalists groups and other opponents to turn this possible solution into a reality?
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