Oil & Gas Facts 2010
Winningreen Issue Alert 071910
Oil and gas facts everyone should know
By Gretchen Randall
Date: July 19, 2010
Issue: Here are some facts on fossil fuels that, in light of the Obama administration’s moratorium against drilling in the Gulf which Louisiana Senator David Vitter (R) told Fox News Sunday he estimated would cost the region 140,000 jobs:
Outer Continental Shelf (OCS): According to a study done by ICF International, a leading global services firm, if development were permitted in just the areas that were off-limits in the Outer Continental Shelf, Arctic National Wildlife Refuge (ANWR) and the Rockies before Obama's latest moratorium, U.S. crude oil production would rise by 36% by 2030 and domestic natural gas production would rise by 10%. This amount of crude oil could offset one-fifth of our yearly imports while the amount of natural gas that could be produced equals the equivalent of 61 percent of the expected natural gas imports in 2030.
√ Much of this oil and natural gas on the west coast is located within 50 miles offshore in the Pacific.
√ Advances in drilling technology have allowed the industry to access much of this oil without the addition of additional platforms.
√ The Energy Information Administration estimates fossils fuels, led by petroleum, will still provide most of the world’s energy in 2030 and beyond.
√ Today the U.S. is the second largest producer of natural gas behind Russia. Even so, the U.S. imports 12% of its natural gas needs — mostly from Canada.
√ An area of the Gulf of Mexico 25 miles off the coast of Pensacola, Florida known as the Destin Dome has been estimated by the Interior Department to contain enough natural gas to supply a minimum of 110 billion cubic feet per year for 20 years.
√ Natural gas is colorless, odorless and clean-burning fuel often found in the same wells as petroleum. It is used to make propane, fertilizer for our farms, paints, plastic and medicines.
√ Shale oil found in rock has been difficult to remove in the past but recently companies such as Shell, Raytheon and Schlumberger have been working with new technology to remove the oil in an environmentally friendly manner.
√ The U.S. has more oil in shale than any other country. The largest deposits in America are located in Colorado, Utah, and Wyoming — mostly on federal lands. Our recoverable deposits from shale are equal to five times the oil reserves of Saudi Arabis or the energy equivalent of over 2 trillion barrels of oil. This is twice the amount of oil that has been consumed by the entire world since oil was first discovered in Titusville, Pennsylvania in 1859.
√ While plentiful, shale gas is difficult to produce because the gas is in microscopic pores of the rock. 3D seismic technology, advanced drilling techniques and hydraulic fracturing are used to produce the gas. For more information, see the sources listed below.
√ The Barnett Shale in north Texas is the largest field in the state. The Marcellus shale is found in West Virginia, Pennsylvania and upstate New York while Michigan sits atop another large reserve that lies under the entire lower peninsula.
Studies have estimated that 160,000 jobs could be generated by 2030 if offshore and onshore areas were opened to development. Developing the areas of the OCS that are currently off-limits could generate $1.3 trillion in revenues for state, local and federal governments.
Sources: We realize there are many other areas that could be mentioned. We could go on forever. Instead we suggest you visit the Institute for Energy Research at: http://www.instituteforenergyresearch.org or the American Petroleum Industry website at: http://www.api.org
Contact: Gretchen Randall
3712 N. Broadway – PMB 279
Chicago, IL 60613