Thursday, November 11, 2004

U.S. oil production at 54-year low

The writing is on the wall. Does anyone remember how to read?

Oil Production in the United States has dropped below five million barrels a day for the first time since April 1950. Hurricane Ivan played a role in disrupting drilling and pumping operations in the Gulf of Mexico, but the decline has been slowly but surely coming anyway. The hurricane is credited with helping spike oil prices at a record $50-plus per barrel.

Most Americans are unaware that oil imports today include a great deal of refined product (the most expensive way to purchase foreign fuel). Domestic refining capacity has declined precipitously in the last decade. No new refining plants are planned.

We remember the drilling boom that took place in Oklahoma, Texas, Colorado and other western states 20 years ago, thanks to high demand and good prices for crude. It was a time of high employment, great tax revenues for the various states (and the feds), and good economies. (Good times, good times!) That boom, as they always do, went bust. We've heard many people today question why a similar drilling boom has not taken place with demand AND prices at an all-time high. The sad truth: even if you can afford to run the regulatory guantlet on a drilling permit (and remember that drilling still isn't a sure thing) you have to have a buyer, and with refining capacity constrained, it just isn't that easy to market domestic crude.

People who do not live in the traditional "oil patch" of America have no idea how environmentally friendly the industry has become. They also do not seem to understand that we are just one interdiction away from a serious fuel emergency in this nation. It would not take much to disrupt our gas supply, our economy and our security.

This is stupid. It is intolerable. It ought to be criminal but we'd have to indict about half the citizens of the U.S. for their passive involvement.

Perhaps an alternative fuel source will be developed someday. Hydrogen cars sound good, but are still years from being practical. In the meantime, we are at risk.

But don't take our word for it. Do some serious research that goes beyond the silly Luddite reactions of groups like the Sierra Club. Assure yourself that the danger is real. Then contact your congressmen and senators and tell them to get the hell on the ball now for a common-sense national energy policy that unleashes our smaller, independent oil producers. Let's quit "out-sourcing" our energy production to other countries that most assuredly do not have our best interests at heart.

Now get moving.

2 Comments:

At 7:55 PM, Anonymous Anonymous said...

Get Moving? And do what? Write to the KNUCKLEHEADS in Washington to open up ANWR as well as start tossin' some money to underwrite a couple of new refineries on the East Coast? Not gonna happen! They'll be happy to throw wads of cash (how 'bout 750 MILLION for the New SUPER Stadium just for starters) at NYC to host the 2012 Olympics!!! But have concern for the nation's energy security?

Americans are indeed STUPID! I watch as my neighbor starts up his car on a cold morning (as it has been lately in Western New York) and within seconds, ROARS away wasting gas and doing some, however slight, damage to his engine.

You are so right. But it is too bad that we can't indict people for idiocy. What's it going to take for us to realize that we can't continue to live as we did 40 years ago. It's long past time that we started conserving AND open up these "pristine" areas for exploration and drilling. Our future as a nation depends on it.

Thanks for "fighting the good fight"! Your article was EXCELLENT!

 
At 1:01 AM, Blogger Dave the Oklahomilist said...

Thanks! There is a need for individuals to take a look at their own energy consumption. It is better to voluntarily conserve (and learn what you can and cannot do without) than to be forced to involuntarily conserve (or do without) in the event of a regional or national crisis. In the past the market has been sufficient motivation to change behavior but during this latest run-up of oil-related prices the prevailing view seems that of indifference. Incomprehensible. Our system works best when people assume personal responsibility for their actions. If that doesn't happen, will the system continue to function? Doubt it.

 

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