Monday, March 26, 2012

The US has the Largest Fossil Fuel Reserves in the World

In November of 2010, the Congressional Research Service produced a report titled "U.S. Fossil Fuel Resources: Terminology, Reporting, and Summary" which shows that the US has the largest reserves of fossil fuels in the world, on a par with Russia, and dwarfing Saudi Arabia.

These reserves, shown in the table below, include technically recoverable oil, natural gas and coal, all expressed in equivalent barrels of oil based on the energy content.  This only includes easily available resources.

click image to enlarge

These energy resources, along with expected future discoveries, have been calculated to last us 400 years at current usage rates. Plus, the new work being done on methane hydrates could give us twice that amount, or even more.

The US has massive amounts of fossil fuels, ready to be utilized.  So why are we so dependent on the Mideast for our energy?  Well, Democrats in Congress have restricted development of oil, natural gas, and coal resources since the early 1970s, creating what is in effect a false energy shortage in the United States over the last 40 years.

Obama is continuing and expanding the policy, despite his election year rhetoric.  Remember that during his campaign in 2008, he stated, "Under my plan...electricity rates would necessarily skyrocket."  And he has said numerous times that energy prices have to go up so that his alternative energy schemes become more viable.  Wind and solar at best cost 10 times as much as fossil fuels -- and that doesn't count the backup fossil fuel generation required to supply power when the wind doesn't blow and the sun doesn't shine.

Tell me how much the economy and your own personal wealth would have improved if energy prices over the last 40 years had been only a quarter of what they were?  Energy costs drive the prices of everything; food, technology, appliances, even homes would have been cheaper without all the energy restrictions imposed by the Democrats in Congress and the White House.

If there is more wealth in the economy, there is more opportunity for new research --  medical procedures and new drugs, and the development of new ideas in technologies of all sorts.  Such an economic boom would mean that lower tax rates would provide the same revenue, so taxes could be cut, leading to an even larger growth in wealth.

Without the Democrats' restrictions, the countries of the Mideast would not have had a strangle-hold on us -- indeed, our money would not have even flowed into their coffers.  Who knows?  We may have been able to avoid several wars.

It is certainly possible that you would have had twice the personal wealth that you have now.

As Senator James M. Inhofe (R-Okla.), Ranking Member of the Senate Committee on Environment and Public Works says,  "The Obama Administration has made a conscious policy choice to raise energy prices, accomplished in good measure by restricting access to domestic energy supplies. Those supplies are, according to the Congressional Research Service, the largest on Earth. We could help bring affordable energy to consumers, create new jobs, and grow the economy if the Obama Administration would simply get out of the way so America can realize its true energy potential."

We can start the economic boom now, if we vote out of office those who prefer us to be dependent and poor.

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