Wednesday, October 27, 2010

Drill, Alaska? A reality check.

The U.S. Geological Survey issued a reality check to those who think that United States can get by without foreign oil. Mind you, those who think U.S. oil resources are/were sufficient are in a special minority of dreamers, right there with those who still think the Earth is the center of the universe and the tooth fairy is real.

Despite the fact that these folks aren't the sort to be swayed by facts or numbers, it cannot help their cause that the U.S. Geological Survey revised the amount of untapped oil reserves that it estimates are in Alaska and its waters down by 90% this week.

The Survey group's new estimate is 896 million barrels of oil are in the reserve, approximately 90% less than a 2002 estimate of 10.6 billion barrels. The good news natural gas reserve estimates were revised upward from 8 trillion cubic feet of gas to 61 trillion cubic feet gas.

Side note, the United States desperately needs more liquefied natural gas terminals. Imagine an America willing to invest in its infrastructure. Too bad, it is a dream, not a reality.

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