If They're Right....

[Joods]

I have always been under the impression that the reserves were already pulled from the ground.

[popeyespappy]

I have always been under the impression that the reserves were already pulled from the ground.

In that case strategic reserves are currently about 700 million barrels. We use about 19 million barrels a day of which about 10 million are imports. So if new oil production stopped we could go about 35-40 days on current stocks. Twice that time if we kept domestic production at current levels and stopped imports.

[Thumpalumpacus]

Okay, so I have a question that maybe all of those way smarter than me can answer.

If the US has a ten year supply of oil reserves, and refuses to utilize it for the American people, why are we holding onto it? Clearly, we suffered a crisis back in 2003 when we saw gas prices take a huge hike. In the 12 years since that has happened, prices have only fallen back to just around $2.00 per gallon. It was around $1.20 when the hike started.
I know why the hike happened, what I don't understand is why our government won't release those reserves. Clearly we do get oil from several places that aren't in the middle east. So why the heavy dependence on foreign oil?

The so-called "strategic reserve" is to ensure that in the event of a major war which reduces or eliminates our oil imports.

Be it noted that we import 27% of our oil. That's a significant improvement over the last forty years, I think.

[Minimalist]

It is both expensive to extract and a lot worse for the environment to do so.

No, no, Pap.  The oil companies insist that global warming is good for us.  Who are you going to believe?  Scientists or your friendly neighborhood oil company?

[popeyespappy]

Extracting oil from tar sands and shale has problems on top of global warming.

[Minimalist]

But that's in Canada.... we don't care about them.

[popeyespappy]

Most of the 300 billion metric tons of US shale oil is in the US.



We have as much of the stuff as everyone else combined.

[Joods]

I am somewhat familiar with the Marcellus Shale controversy in PA, as that's where I live. I've heard them mentioned in the news several times and if I'm not mistaken, there was a vote that came up to be able to tax Marcellus Shale more or something, but lawmakers refused to do so.