Tuesday, July 08, 2008

Energy Myths and the "Democratic" Congress...

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Investors Business Daily IBD provides some facts to counter the well rehearsed "Energy Myths" that have been coming out of the Democratic Party controlled Congress regarding the energy crunch we now face...



"This is especially true of Democrats. Many in Congress seem either disconnected from reality or intentionally disingenuous about our energy crunch. They have well-honed negative responses to common-sense ideas about solving our energy crisis, particularly drilling for more oil."


"We can't drill our way out of our energy crisis."


"Actually, we can. As we've noted before, conservative estimates put the total amount of recoverable oil in conventional deposits at about 39 billion barrels. Offshore, we have another 89 billion barrels or so. In ANWR, 10 billion barrels. In oil shale deposits, we have more than 1 trillion barrels of oil. In perspective, that's about four times the total reserves of Saudi Arabia. And if estimates of shale reserves as high as 2 trillion barrels prove true, we'll have about a 300-year supply of oil just from shale. This compares with current estimated total U.S. oil reserves of about 21 billion barrels."


"Even if drilling works, it'll take a decade or more for the oil to flow."

"This is quite an argument coming from the Democratic Party, which has made keeping oil off the market a linchpin of its energy policy for decades.If President Clinton hadn't vetoed the idea of drilling in ANWR back in 1995, we'd have that oil on the market today. Ditto if Congress had approved ANWR drilling in 2002, when President Bush requested it.
Even so, the larger point is false anyway. New oil will be flowing in some cases within three to four years, according to industry estimates. But the impact on prices will be immediate. Why? Because markets would suddenly have to discount future oil prices for the expected gain in oil supply. That would cause oil prices, especially in futures markets, to drop."
Great Read at IBD

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