Friday, August 03, 2007

Today's Special: Oil For Shale

Just take a look at this graph. Are you as stunned as I am? Now this graph represents only oil that is locked up in oil shale. What's really amazing is this reserve located in the western U.S. literally dwarfs the known reserves in all of Saudi Arabia. That's right. We have more oil than Saudi Arabia. Iraq and Iran combined!

Why is this apparently well-known fact not being discussed in the main stream media at all? I have to believe it has a lot to do with radical environmentalism. There is a zealous desire among the leftists that control the discussion in the major media to discourage Americans right out of their SUV's. But then I am cynical when it comes to the motives of "environmentalists" and the "main stream media".

This oil reserve has been known about for decades. The land where a vast majority of this oil shale is lies in the states of Utah, Colorado and Wyoming. Most of the land, some 80% of it, is owned by the federal government. It is remote, rugged and is sparsely populated. In fact, the government placed protective legislation on this land in 1930, basically forbidding anyone to touch it.

The government knew this land was saturated with oil — but getting it out has always been prohibitively expensive. Clearly buying oil from foreign countries was always the cheaper bet. Not much has changed in that regard until just recently.

Oil prices due to geopolitical situations have skyrocketed. The amount of readily available crude located in politically stable areas is a tiny fraction of the total. With so much oil in the Middle East/South Asia region and with nations like Russia, Venezuela and Nigeria taking their oil industries through nationalization the civilized world is playing Russian roulette with their economies.

If there ever was a time to "tap" this reserve the time is now. We are still a decade or two at the least from the beginning of the end of the oil age. Is there a chance that technological advances would be stifled by introducing this abundant supply into the picture? Is there a chance that this new source of oil will upset the global economy? Anything is possible.

What have we heard from politicians since 1973? "We need to end our dependency on foreign oil". While this is simple rhetoric that belies the sheer ignorance of or complicit conniving of Washington politicians the fact is we depend more on foreign oil from more and more unstable sources than ever before! What have they done to bring about this vaunted goal of energy independence? The one politician who did actually do something about it will never get credit because his motivations will always be taken to task. He will forever be accused of setting up his rich buddies in the oil business.

Here are the facts. Oil shale technologies have begun to advance – drastically. Companies are coming up with ways to extract oil from the Green River Formation very cheaply. One company says it can extract the oil for as little as $10 a barrel. In fact, dozens of companies have stepped forward with similar claims. The time has come to tap this reserve (and build the refineries to get it to market)

The good news? On August 8, 2005, President Bush signed into law a new energy mandate. This mandate is called The Energy Policy Act of 2005. It calls for the opening phases of oil extraction in the Green River Formation – the world's most concentrated energy source.

We're finally ready to tap the largest oil reserve on the planet...

Will it actually happen? Will the environmentalists and Al Gore get it shut down with clap trap about Global Warming? Will America achieve energy independence?

What do you think?