Have you ever heard of the Institute for Energy Research ("IER")? The likely answer to that question is no, but this foundation has just released one of the most important reports of the last few years. The North American Energy Inventory from IER puts forth the details of exactly how much oil, natural gas and coal is located in North America, and the numbers are really shocking. Let me explain:
Most Americans who pay attention to public debate regarding energy have heard president Obama and Obamacrat leaders like Harry Reid solemnly announce that the USA needs to move away from fossil fuels. They have told us that the USA has only 3% of the worlds oil reserves but we use 25% of total world production. The IER report shows that this statement is a total distortion of reality. In truth, the USA has the biggest amount of recoverable oil in the world. Indeed, the difference arises because Obama and his cronies speak in terms of proven resources, and that limits what can be counted. For example if there is oil in an area but the government does not allow drilling in that area, the oil is not counted as proven reserves. If new technologies exist which could let oil be profitably removed from a deposit but that technology is not yet being used, then the oil is not proven reserves. On the other hand, recoverable oil includes all oil that could be removed from the ground with current technology.
To the extent that anyone questions whether oil deposits should be counted only as proven reserves like Obama and friends do, you should consider this fact pointed out by the IER. In 1980, US proven reserves were 30 billion barrels of oil. This was a pretty bleak figure which Jimmy Carter used to call for substantial cuts in energy usage. Well guess what? Since 1980, there has been over 70 billion barrels of oil produced in the USA and proven reserves are just a bit lower than they were in 1980. That's right, about two and a half times the proven reserves were actually produced, but the level of reserves did not change much at all.
The main point here is that the USA has the world's biggest reserves of oil, natural gas and coal. No other country even comes close. According to the data reviewed by IER, the USA has about 1.45 trillion barrels of recoverable oil and there is about another 2.5 trillion barrels of oil that is not presently recoverable but that could change with technological development.
For natural gas, the American supply is even larger. America has about 272 trillion cubic feet of proven reserves and it uses about a tenth that amount each year. Recoverable gas, however, totals more than ten times the proven reserves and the total gas is five time higher still. America has more gas reserves than the next five countries combined according to the IER.
So what does this all mean? The answer is simple. The USA has the potential to become self sufficient in energy if the government allows drilling to proceed without the major roadblocks that are currently in place. While that is unlikely to occur in the near future, even a relaxation of the restrictions to rational levels would greatly increase production of both oil and natural gas. That increase means jobs, and plenty of them. Estimates are that one and one half million new jobs could be created in the next four years alone. At the same time, the GDP would grow much more quickly since not only would there be the oil and gas production but also the price of energy would decline and give American industry a major advantage over foreign competition.
Despite the enormous benefit of increasing energy production for the American people and the American economy, Obama and the Obamacrats are doing everything they can to prevent this from happening. Instead, they invest billions in phony solar energy companies like Solyndra. Obama stops pipelines from being built. Obama delays drilling permit applications that used to take a week to get approval until they now require about a year before work can go ahead. In short, Obama does everything he can to drive up the price of energy. This hurts economic growth. This means many fewer jobs. This means a bigger federal deficit since there are more unemployed people receiving benefits and fewer company profits to tax. This means a decline in the power of the USA. But we should not forget what it has not meant. There is not thriving solar power industry. There is no thriving wind power industry. There is not electric car industry other than GM selling the Chevy Volt, a car no one will buy and which bursts into flames after an accident. There is no reduction in pollution. In short, Obama's position is a lose-lose position for America.
The IER report is an important document to read. It takes a bit of time, but it is chock full of data that we all should know. You can reach it by clicking on the title to this post. I strongly recommend that you do just that.
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