Barack Obama and John McCain have discussed energy policy the last day or so, and both are about to announce what their policy is, although McCain has already called to end the moratorium on offshore drilling, if the affected states agree. Obama seems to believe that we can tax ourselves to an energy solution. McCain's policy is weak, and Obama's policy is absurd. Neither will be much or any help with our energy problems. Nor has any other "energy policy" that has been pursued by our government been anything more than a hindrance for many decades. This includes the corn into ethanol boondoggle.
Clearly, in the long run, we must find alternatives to fossil fuels. Equally clearly, we must also look for shorter term help for our economy and to reduce the huge amounts of our treasure we are sending overseas to OPEC and others. The huge balance of payments deficit that we have been running for many years endangers us all.
For the short term, there are plenty of domestic reserves that could be developed or are in the process of being developed. With intelligent leadership we could, in a few years, substantially increase domestic production. This would help keep the "oil tax" on our economy far lower than it otherwise would be. We need to start now, not wring our hands about it for another decade or two.
Some of the potential reserves:
The Bakken is a shale formation in the Williston Basin that is similar to the Barnett Shale in the Ft. Worth Basin. The techniques developed in the Barnett play are being adapted to produce the oil in the Bakken, as well as other similar shales all over the country. This will undoubtedly increase domestic production over time, but it is not going to eliminate our dependence on foreign oil any time soon. It will certainly help.
Some other deposits are the western oil shales...again, a similar deposit to the Barnett and the Bakken, but these are mainly on the surface. These deposits do contain upwards of a trillion barrels of oil, and the technology exists to extract it. The difficulty with this is the damage that will be done environmentally. There could be really serious damage done to the western states to strip mine that shale, unless there are restrictions on the way it is done. Studies on this are being held up in the Senate.
Reserves in ANWR, that are now off limits, are approximately 15-20 billion barrels. If Bill Clinton had not vetoed legislation allowing limited drilling up there, we would have over 1 million barrels per day of that producing now, which would significantly reduce the costs of gasoline at this time. This is substantial production that could now be online, and with appropriate environmental protections.
Reserves on the Outer Continental Shelf off Florida and the Atlantic and Pacific Coasts are estimated at 100 billion barrels of oil and 500 trillion cubic feet of gas. These reserves are now off limits as well. These regions can be drilled with current technology with NO environmental risks.
One reserve that is in Canada is rarely mentioned. That is the huge oil sands deposit up there. There are about 1+ trillion barrels of oil in those sands, and they are now being developed. The first new refinery in the US in over 30 years has been approved in North Dakota to refine oil from that deposit. Unfortunately, our Congress, in its infinite stupidity, has classified that as unconventional oil, thereby making it largely unavailable for use in the US.
The United States also has the largest coal reserves in the world. There has existed since before World War II a technology to make gasoline from coal. The Germans used that process to fuel their war machine during the war, since they had no oil reserves. We could be doing that as well. The largest single reserve of "clean" coal in the United States was put "off limits" by Bill Clinton, who put it into a national monument.
The bottom line: mostly unreasonable environmental concerns and the Democratic Party and it's policies have put our potential for true energy security completely out of reach. The Republicans have done little to counter this. We have the reserves and the technology to safely produce a lot of oil or equivalent, but our political leadership has failed to allow this to happen, and in fact prevents it. When you add up the huge costs we are paying for energy, together with the huge costs of the resulting balance of payments deficit, you can see that our leaders in the government have totally failed. And they apparently plan to continue to do so.
