The U.S. reserve holds 727 million barrels of crude oil in caverns along the Gulf of Mexico coast, according to the U.S. Department of Energy. It was established to counter supply disruptions following the Arab oil embargo of 1973-1974. The government has released some of the oil 17 times since 1985, most recently in 2008 after hurricanes Gustav and Ike struck the Gulf Coast, according to the DOE. In August 2008, as a candidate for president, Obama called for the government to swap light crude in the reserve for heavier oil at a time when oil was at more than $120 a barrel and the average retail price of gasoline was about $3.90 a gallon. He previously opposed tapping the reserve as a brake on prices. When oil peaked at $147.26 a barrel in July of that year, President George W. Bush resisted calls to release some reserves to drive down prices.
Originally posted by mikeybiznaz
Originally posted by thoughtsfull
reply to post by unityemissions
Those type of prices start to put so much strain on countries like the UK, we'll have no choice but to start thinking about going back to a 3 day week (as we did in the oil crisis of the 70s)
Can you be more clear with your comment. People now-a-days have more info and because of that know there was no energy shortage in the 70's..american gas prices went from 36.9 cents a gallon to 69.9 cents a gallon .Gas stations ran out of gas because americans PANICKED, the oil tankers were sitting in the bays waiting to be let in to our refineries. Why did oil prices fall from $147Bbl to $37Bbl in the summer of 2008? Exploitation of North American Oil.
The Fat Lady hasn't sang her song yet.edit on 7-3-2011 by mikeybiznaz because: added content
America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation in North Dakota could boost America’s Oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant.
In the next 30 days the USGS (U.S. Geological Survey) will release a new report giving an accurate resource assessment of the Bakken Oil Formation that covers North Dakota and portions of South Dakota and Montana. With new horizontal drilling technology it is believed that from 175 to 500 billion barrels of recoverable oil are held in this 200,000 square mile reserve that was initially discovered in 1951. The USGS did an initial study back in 1999 that estimated 400 billion recoverable barrels were present but with prices bottoming out at $10 a barrel back then the report was dismissed because of the higher cost of horizontal drilling techniques that would be needed, estimated at $20-$40 a barrel.
It was not until 2007, when EOG Resources of Texas started a frenzy when they drilled a single well in Parshal N.D. that is expected to yield 700,000 barrels of oil that real excitement and money started to flow in North Dakota. Marathon Oil is investing $1.5 billion and drilling 300 new wells in what is expected to be one of the greatest booms in Oil discovery since Oil was discovered in Saudi Arabia in 1938.
The US imported about 14 million barrels of Oil per day in 2007 , which means US consumers sent about $340 Billion Dollars over seas building palaces in Dubai and propping up unfriendly regimes around the World, if 200 billion barrels of oil at $90 a barrel are recovered in the high plains the added wealth to the US economy would be $18 Trillion Dollars which would go a long way in stabilizing the US trade deficit and could cut the cost of oil in half in the long run.
Since the 1990s, the federal government has consistently encouraged the development of its oil and gas resources and the amount of drilling on federal lands has steadily increased during this time. The number of drilling permits has exploded in recent years, going from 3,802 five years ago to 7,561 in 2007.
Between 1999 and 2007, the number of drilling permits issued for development of public lands increased by more than 361%, yet gasoline prices have also risen dramatically (Figure 1) contradicting the argument that more drilling means lower gasoline prices. There is simply no correlation between the two.
In the last four years, the Bureau of Land Management has issued 28,776 permits to drill on public land; yet, in that same time, 18,954 wells were actually drilled. That means that companies have stockpiled nearly 10,000 extra permits to drill that they are not using to increase domestic production.
Further, despite the federal government=s willingness to make public lands and waters available to energy developers, of the 47.5 million acres of on-shore federal lands that are currently being leased by oil and gas companies, only about 13 million acres are actually Ain production@, or producing oil and gas (Figure 2). Similar trends are evident offshore as well (Figure 3), where only 10.5 million of the 44 million leased acres are currently producing oil or gas.
If we extrapolate from today's production rates on federal land and waters, we can estimate that the 68 million acres of leased but currently inactive federal land and waters could produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day.
That would nearly double total U.S. oil production, and increase natural gas production by 75%. It would also cut U.S. oil imports by more than a third, and be more than six times the estimated peak production from the Arctic National Wildlife Refuge (ANWR).
In a Nutshell
* On the Outer Continental Shelf, 82% of federal natural gas and 79% of
federal oil is located in areas that are currently open for leasing.
* Onshore, 72% of oil and 84% of natural gas resources are either fully
accessible under standard lease stipulations designed to protect lands
and wildlife, or will be accessible pending the completion of land-use
planning or environmental reviews.
* Between 1999 and 2007, drilling permits for oil and gas development on
public lands increased more than 361%.
* Since 2004, the Bureau of Land Management has issued 28,776 permits
to drill on public land; in that same time, only 18,954 wells were actually
* Oil and gas companies have stockpiled nearly 10,000 extra permits to
drill that they are not using to increase domestic production.
* Onshore, of the 47.5 million acres of federal lands leased by oil and
gas companies, only about 13 million acres are actually producing oil
* Offshore, only 10.5 million of the 44 million leased acres are currently
producing oil or gas.
* Combined, oil and gas companies hold leases to nearly 68 million acres
of federal land that are not producing oil and gas.
* The 68 million acres of leased, inactive federal land could produce an
additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural
gas each day.
* That would nearly double total U.S. oil production, and increase natural
gas production by 75%.
* 4.8 million barrels of oil equals more than six times the estimated peak
production from the Arctic National Wildlife Refuge.
* Development of and production from the 68 million acres currently
under lease but not in production would cut US imports of oil by one third.
The MMS has estimated that there are around 18 billion barrels in the underwater areas now off-limits to drilling. That's significantly less than in oil fields open for business in the Gulf of Mexico, coastal Alaska and off the coast of southern California, where there are 10.1 billion barrels of known oil reserves as well as an estimated 85.9 billion more.
To put these numbers in perspective: one U.S. barrel of oil equals 42 gallons (159 liters) and, according to the Energy Information Administration (an arm of the U.S. Department of Energy that provides energy data and analysis), the U.S. consumes some 20.8 million barrels of oil a day—almost one quarter of the 87 million used worldwide. That adds up to 7.59 billion barrels a year.
Originally posted by BarmyBilly
Check out THIS thread
I suggest buying some petrol now and putting it in your shed or something for when the prices get even higher, oh and also lock your petrol caps my nan had some petrol siphoned from her car last week in the night.