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Oil now and oil tomorrow 

Difficult challenges persist for increasing domestic supply

September 11, 2005
by CFACT 

Between January and May 2005, the cost for filling my car tank doubled. People ask why? The answer is that years of placing so many restrictions on this nation's ability to keep pace with its energy needs have finally hit home. And now that everyone is paying more, maybe, just maybe, through this difficult process, we'll all figure out who and what is to blame.

You cannot "conserve" energy by simply not using it or using less. The ultimate "conservation" would be to stop mining coal or stop drilling for oil and natural gas. The modern world runs on these sources of energy. Cutting back on their use means less electricity, less fuel for automobiles, trucks, and planes. The United States is a powerful economic machine precisely because that machine runs on energy.

Despite the naysayers, there is ample evidence that vast, often as yet undiscovered, reserves of energy exist. Ever since the first discovery of oil, somebody has been saying we are running out of it and, every year, new reserves are found.

The problem is, our hands are simply being tied from getting to it.

 This past Earth Day, for example, two New Jersey politicians held a press conference to announce they would re-introduce legislation to make it more difficult for States to permit offshore drilling for oil. There are unknown, but presumably vast reserves of oil off the coast of New Jersey. And, of course, we know that such reserves exist off the coasts of California and Florida -- two States that have resisted drilling, although it does exist. 

You can't get around any State without a car. A huge highway system is testimony to the nation's reliance on autos for personal transportation and trucks to move the bulk of all food and other goods on which we depend. All of this requires a lot of gasoline and diesel fuel. Where are we going to get it if we do not drill for the oil that exists throughout the nation and offshore except to import more and more oil from other nations?

For example, we import oil from Canada that is derived from shale deposits. Canada has invested heavily in tar sands technology to reap oil from Alberta. Clearly it has paid off, but did you know that Utah, Colorado, and Wyoming sit on a massive fortune in untapped oil—maybe more oil than in the Middle East? An April 13 news article in the Deseret Morning News reported that the Senate Energy Committee held hearings on the "vast reserves of oil found in tar sands and oil shale located in eastern Utah, western Colorado, and southern Wyoming. ‘The amounts of oil,' said Sen. Orrin Hatch, R-Utah, ‘are mindboggling', but this oil is not regarded as part of our nation's oil reserves because it has not yet been developed commercially."

The reason for this is the cost. However, as the cost of a barrel of imported oil has surpassed $60 and is likely to stay there awhile, an investment in the technology to extract it from shale begins to look feasible and sensible. I once sat beside an oil company executive on a flight and never forgot his comment that, "If we were ever to begin to run out of oil, we'd be sucking it out of telephone poles." We don't have to do that. The world is not running out of oil. We have oil offshore. We have capped oil wells that are not in use. And we can import from reliable suppliers.

The energy bill that was passed by the House of Representatives is seriously flawed in many ways, but it does provide $8.1 billion in energy tax breaks, including $2 billion, to increase research into drilling in the Gulf of Mexico for oil and gas, and $2 billion to the manufacturers of MTBE to help defray the coast of phasing out the product, a gasoline additive, that is now known to contaminate drinking water. 

Right now, the oil refineries in the United States are running at 95 percent of capacity. A succession of regulations has succeeded in reducing the nation's capacity to refine oil into gasoline. Among them is the requirement for more than forty different "blends" of gasoline. Today, only 149 refineries produce 16.8 million barrels of gasoline. In 1981, there were 321 refineries producing 18.6 million barrels. 

The National Petrochemical and Refiners Association forecasts that eight to ten new refineries are needed to keep up with current and future demand. Each refinery is estimated to cost $2.5 billion and take up to seven years to build and complete. There's a catch though. Environmental regulations would require as many as 800 different permits. The NPRA estimates that regulatory costs over just the past decade reached $47 billion.

You can have gasoline for your car or you can leave it in the garage because this nation has failed to authorize access to known reserves of oil and has foisted a matrix of regulations that make it too costly to refine it. Remember, too, oil and natural gas is used to heat homes and as fuel for many manufacturing facilities. Our reserves of coal are so vast as to meet our needs for centuries to come and there are processes that can transform coal into gasoline.

Our politicians in Congress seem oblivious to this. Instead, a gaggle of midwestern lawmakers introduced a new ethanol mandate that would require that eight billion gallons of gasoline use this corn-derived fuel additive. The bill may not pass, but if it does, big ethanol producers will benefit, but everyone who drives will find the cost of gasoline has increased for no good reason. 

Sen. John McCain (R-AZ) and Sen. Joe Lieberman (D-CT) have introduced the Climate Stewardship Act that would restrict the total amount of petroleum and other fossil fuels that can be used in the US. This is nothing more than the rejected UN Climate Control "Kyoto" protocol. It is based on the belief that global warming is occurring. It is not. The Earth is not experiencing any kind of significant warming, at least none that can be scientifically attributed to man's activities. 

Restricting or "conserving" energy use will only serve to plunge the whole of humanity into an era the modern mind cannot even conceive. Current efforts to deny Third World nations to modernize keep more than two billion people without electricity. Their populations die young from disease and starvation. It is all preventable.

It is totally irrational to ban access to known reserves of energy in so many places on the face of the Earth. It is totally irrational to thwart the building of new facilities to extract and refine it. It is totally irrational not to build nuclear energy facilities. It is totally irrational and yet it is happening here. It is time for things to change.

Alan Caruba, a CFACT contributor, writes a weekly column, "Warning Signs," posted on the Internet site of The National Anxiety Center, anxietycenter.com.

CFACT defends the environment and human welfare through facts, news, and analysis.
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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT drops the banner on Greenpeace ships }

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{ from CFACT arrives in Copenhagen }

Dr. Singer says global warming made up by man, not man-made...

{ from Is global warming from man? }

If an herbicide, that can drastically improve farming, has proven to be safe for not only the animals in the environment, but also humans, it should be used, right? Not according to the EPA....

{ from Is government standing in the way of lower food costs? }

The future of the bay looks bright: stewardship at its best....

{ from Science to save the Chesapeake Bay }

International efforts to ban chicken coops harms birds, farmers...

{ from In praise of cages for egg laying hens }

How do you turn something as plentiful as grass into food? Feed it to cows and have a B.B.Q.! U.S. meat production per acre has doubled since 1970, largely due to pesticides, veterinary chemistry, and better plant breeding...

{ from Giving up meat to Save the Planet? }

How do you turn something as plentiful as grass into food? Feed it to cows and have a B.B.Q.! U.S. meat production per acre has doubled since 1970, largely due to pesticides, veterinary chemistry, and better plant breeding...

{ from Giving up meat to Save the Planet? }

The future of the bay looks bright: stewardship at its best....

{ from Science to save the Chesapeake Bay }

How do you turn something as plentiful as grass into food? Feed it to cows and have a B.B.Q.! U.S. meat production per acre has doubled since 1970, largely due to pesticides, veterinary chemistry, and better plant breeding...

{ from Giving up meat to Save the Planet? }

How do you turn something as plentiful as grass into food? Feed it to cows and have a B.B.Q.! U.S. meat production per acre has doubled since 1970, largely due to pesticides, veterinary chemistry, and better plant breeding...

{ from Giving up meat to Save the Planet? }

International efforts to ban chicken coops harms birds, farmers...

{ from In praise of cages for egg laying hens }

Scientific "consensus" and other shady sales tactics promote alarmist theories...

{ from Global warming bait-and-switch }

Scientific "consensus" and other shady sales tactics promote alarmist theories...

{ from Global warming bait-and-switch }

Three California counties reject measures to ban the use of GM crops...

{ from Voters voice support for biotech farming }

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  • Eco-terrorism hits Maryland: 'Inconvenient Terrorist' latest in long line

    Inconvenient terrorist James Lee who was shot and killed by a SWAT team in the Discovery Channel Building in Silver Spring, Maryland, is the latest of a long line of eco-terrorists

  • An Inconvenient Terrorist

    Armed eco-terrorist who experienced an “awakening” by watching Al Gore's Inconvenient Truth was shot and killed after storming Discovery Channel Building. Radical manifesto condemns 'parasitic children' and human civilization, calling for sterilization and giving the planet back to the squirrels.

  • An ill wind in New Jersey

    Proposed windmill would cost $7 million, stand taller than the Statue of Liberty, and when the wind isn't blowing would need to be kept turning with electricity from a traditional plant in order to avoid mechanical failure.

  • End environmental experiments on Africans!

    Environmentalists are using African parents and children in anti-DDT experiments. They are playing with our lives. So are the government agencies and others who support their policies. This is wrong and immoral. And it is only one of the ways they use Africans as experimental laboratory animals.

  • Prepare for an ice age!

    "Little ice ages" are the flip side of the 1500-year warming cycle. We should take advantage of the favorable climate we are currently enjoying to increase research on high-yield agriculture, biotechnology, water conservation and other advances now only dreamt of.

  • Howard Stern: 'Bring back DDT!'

    Stern argues that New York's bedbug problem is nothing compared to the millions dying from malaria in Africa, quoting extensively from an article by CFACT's Paul Driessen.

  • New York's bedbugs vs. Africa's malaria crisis

    Our obsession with pesticide “risks” has very different consequences for America and Africa.

  • How to save the Chesapeake Bay: Oysters vs. Regulations

    Oysters kept the Bay clean in the past, but the EPA is ignoring this proven solution in favor of big government regulations.

  • New ethanol policy poses heavy cost for consumers

    E15 ethanol mandates would bring huge benefits for ethanol producers at the expense of the rest of us.

  • Empowering the poor in the Yucatan jungle

    Local villagers struggle to survive in Becan, but a new program promises to bring prosperity by unleashing their creativity and energy.

  • The global warming fleecing of the American taxpayer

    The federal government has spent tens of billions of taxpayer dollars on research that has completely failed to affect temperatures or demonstrate an empirical link between human CO2 emissions and global warming.

  • Target: Monckton

    Lord Monckton is under attack, a sure sign that he’s winning on warming. Monckton fights back and refutes Prof. Abraham.

  • New coal mine approved in Utah

    In a victory for the nation’s beleaguered resources industry, Utah officials have approved a permit for a coal mine in their state.

  • EPA set to crack down on farm dust

    Agency believes dust is a pollutant and wants to impose stringent limitations on the amount of dust farmers are allowed to kick up while plying their trade.

  • Climate Depot’s award hat trick

    Marc Morano receives another award for his journalism covering the global warming movement.

  • Climate proposals threaten pursuit of happiness and justice

    New study documents harmful effects of “cap-and-trade” and “endangerment” schemes.