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Page added on December 8, 2018

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Saudi America Continues Energy Dominance

Production

In 1956, geologist M. King Hubbert presented a paper to the American Petroleum Institute in which he warned that new reserve discoveries failed to keep up with the rate of fossil fuel consumption. Hubbert accurately predicted the domestic production peak of the 1970s, making him synonymous with the term “peak oil.” However, he failed to foresee the ingenuity of the free-enterprise system and how the U.S. would become an energy powerhouse in the 21st century.

…this reserve alone could meet the nation’s energy needs for decades.

The Department of the Interior (DOI) recently announced that it has discovered recoverable oil and gas reserves in the Delaware Basin that lies between New Mexico and West Texas. According to the federal government, two underground layers contain 46.3 billion barrels of unrecovered oil, as well as 281 trillion cubic feet of natural gas.

The U.S. Geological Survey (USGS) revealed that this is the largest oil and gas reserve it has ever come across. But analysts say that the tally might be underestimated. Because scientists only examined two layers of the hydrocarbon-filled shale rock zones, the final numbers may be much larger than those in the report.

As a result, this is now one of the most important places on the planet for crude production, says Ryan Flynn, the New Mexico Oil and Gas Association Executive Director. He projects that this reserve alone could meet the nation’s energy needs for decades.

“We really have an unprecedented opportunity thanks to strength of the oil and gas industry and this surplus, which again, I think today’s announcement means this surplus can be the norm rather than the exception. We have an opportunity to hire more teachers, provide healthcare for more New Mexicans, to increase and make our communities safer.”

This also raises another fascinating question: Just how many hidden oil and gas reserves are there in the U.S.?

US Energy Powerhouse

In the 1970s, American motorists endured an oil crisis. Such a scenario would be hard to envision these days, but there was a time when cars would form lines extending several blocks to purchase a few gallons of expensive gasoline because of Middle East hostilities. It would be inconceivable today because America is now an energy juggernaut, thanks to the shale-oil revolution.

Over the last decade, companies invested in hydraulic fracturing, otherwise known as fracking, to extract petroleum or natural gas from deep in the Earth. This process involves opening and widening the cracks below the planet’s surface by inserting chemicals, sand, and water at high pressures.

This method has fueled U.S. output, producing 11 million barrels per day (bpd) and topping the 1970 peak of 10.044 million bpd. With immense reserves still being stumbled upon, you cannot help but deduce that this figure could climb to 12 million bpd within the next couple of years.

Many analysts are frightened that domestic production could crater because prices are in a bear market, hovering just above $50 a barrel. Is there cause for concern? U.S. firms can profit from a barrel of oil costing $35, even with President Donald Trump’s tariffs on steel – cheap steel has facilitated the industry’s resurgence. It is the foreign businesses that cannot sustain their practices with contracts under $50. That said, the bottom may have yet to happen amid the ballooning global supply glut, especially as OPEC refrains from slashing output levels. But the U.S. can likely weather the storm.

And it isn’t only crude oil in which the U.S. is dominating – it’s natural gas, too. As the country transitions away from coal and into other energy sources, the U.S. has become a global leader in natural gas. This year, dry natural gas production has averaged 83.2 billion cubic feet per day (bcf/d), up 8.5 bcf/d from 2017. With prices trading at $5, output will only surge to keep up with the demand.

A Crude Renaissance

America’s rise from energy dependent to energy independent is a celebratory tale of the free-enterprise system and how so many of the so-called experts got it wrong. Despite years of empty promises from every Republican and Democratic administration, the nation has finally morphed into an energy superpower, toppling the crude kings of Russia and Saudi Arabia. And the dominance persists.

For decades, there were two certainties. The first was that the U.S. relied on corrupt foreign governments to power the nation, continually fearing that any disagreements with these regimes would send imports plunging and prices skyrocketing. The second was the parade of experts going on television and warning about peak oil and the pending apocalypse.

Thanks to the transformation of the U.S. into Saudi America, bringing OPEC to its knees, those two inevitabilities of yesterday have been tossed into one of the many vast oil reserves in Texas or North Dakota. There is a renaissance occurring in the country’s energy sector, so let’s toast the drillers with a glass of Bubblin’ Crude and swim in the ocean of black gold.

libertynation



9 Comments on "Saudi America Continues Energy Dominance"

  1. JuanP on Sat, 8th Dec 2018 8:26 am 

    USA! USA! USA! Give me more oil and gas, please! Just keep it coming! More is better!

  2. Cloggie on Sat, 8th Dec 2018 9:20 am 

    Peak Oil, yesterday’s fake news.

    Peak Atmosphere is the real thing.

  3. Davy on Sat, 8th Dec 2018 10:49 am 

    This is good news.
    Drill Baby Drill!
    Make America Great Again!

  4. This is JuanP on Sat, 8th Dec 2018 11:13 am 

    Davy on Sat, 8th Dec 2018 10:49 am This is good news. Drill Baby Drill!
    Make America Great Again!

  5. Theedrich on Sun, 9th Dec 2018 9:25 am 

    Non-Jewish genocide?  No problem!  Especially if Saudi America needs to keep moneyed friends like Saudi Arabia.  It has been estimated that ca. 150,000 Yemeni children have died of starvation due to U.S. military assistance to Araby and the Emirates in their genocidal war on Yemen.

    After all, if the Sand Negroes of Saudiland were to lose their regional hegemony, not even the Permian Basin could put Humpty America together again.  Besides, America has been threatening the world with nuclear extinction ever since 1945 — a little known fact among the populace of the indispensable nation.  So what does a little mass slaughter of civilians matter in a corner of the world that most TV-zombies could not care less about?  And anyway, Yankee “heroes” practiced indiscriminate butchery on a vast scale in World War Two against the “evil” civilians of Germany and Japan.

    No, America’s Bubblin’ Crude will not make the Saudi oil spigot irrelevant, ever.  Washington knows this, and has no option but to keep its bed buddy, the lucrative levantine Kingdom, assisted in every way possible in its perpetration of pro-American and pro-Israeli genocide.  After all, what else do heroes do?

  6. Sissyfuss on Sun, 9th Dec 2018 1:14 pm 

    Dept of Interior is now manned by Truglodykes who, like most depts never give ingenuous stats, just BAU approved hopium. Realism enters the holiday season just as neglected and unloved as a homeless child.

  7. Sissyfuss on Sun, 9th Dec 2018 1:31 pm 

    And Rockman, how accurate is this report? You’re a capitalist but you know your schist.

  8. makati1 on Sun, 9th Dec 2018 5:53 pm 

    The oily world is disintegrating. OPEC is cracked and going to crumble. Those who truly have will set the price and it will not be the dying US. When the SHTF and the US economy fails, so will all of the fraking and indebted oily companies. Not that many Americans will be able to afford oil or its products. Coming soon to a gas station/Walmart shelf near you.

  9. Free Speech Forum on Tue, 11th Dec 2018 5:39 am 

    The USA is a bankrupt warmongering police state today.

    There are many reasons why Americans are not resisting tyranny.

    Part of the reason Americans are not resisting now is that they are defeated, degraded, divided, and distracted. Why go out and risk getting arrested and killed fighting tyranny when they have weed, sex, beer, food stamps, A/C, TV, and bread and circuses? Young people don’t care about freedom because they think living in a police state is normal and old people don’t care because they will be dead soon. Only middle-aged people who know what freedom was like and might be still alive for another 30-40 years seem to care.

    Instead of waking up and resisting, Americans seem to have given up by embracing drugs, alcohol, sex, and suicide.

    Another reason Americans are accepting tyranny is because they do not realize that the US used to be a free country. How can Americans stand up for freedom when they do not know what the Bill of Rights is? Americans don’t know that tyranny killed millions of people in Nazi Germany, the USSR, and Cambodia.

    Americans feel that tyranny only affects other people and freedom only benefits others.

    Americans believe the police state has no downsides and do not realize decrees have unintended consequences. Americans scream that they need the government to have regulations to force airlines to provide large seats and neck massages, but they do not know that regulations raise prices and kill jobs.

    Americans are completely ignorant about the slippery slope dangers of rising tyranny. No one cares if saggy pants are illegal, leaf blowers are against the law, cows are illegal, teen driving is illegal, or smoking is illegal. The problem is what happens when your job is banned, the government steals your house, tortures your family, or sends you to the concentration camps.

    Americans think curfews, gun bans, NSA wiretapping, checkpoints, forfeiture, the end to the right to silence, free speech bans, torture, kill lists, no fly lists, searches without warrants, private prisons, mandatory minimums, 3 strikes laws, DNA databases, CISPA, SOPA, NDAA, IMBRA, FBAR, FATCA, TSA groping, secret FISA courts, and Jade Helm only apply to blacks, illegal immigrants, Jews, and Muslims.

    The US is collapsing today because Americans are lazy and dependent cowards. Americans may think deep down inside that immorality, debt, endless wars, and tyranny are wrong, but there are perverse incentives that encourage people to remain silent. Anyone who is quiet and compliant is rewarded with food stamps, a campaign donation, a paycheck, or a sale. Anyone who questions the status quo is called a racist, nutjob, gets an IRS audit, is arrested, or killed. No one became a billionaire by promoting liberty.

    The Gestapo, TSA agents, government workers, and welfare bums are not going to stand up to fight for freedom because they have a vested interest in supporting tyranny.

    Clean-cut, moral Americans who were taught to hate Communism, be hard-working, be responsible, respect free speech, support religious freedom, defend gun rights, oppose warrantless searches, seizures, and torture must be in a state of shock to watch the USA become Socialist and not regret speaking up earlier. How could Americans go to the same schools and have such different beliefs?

    Disgusting.

    The US deserves everything coming to it.

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