An article in today’s Washington Post points out that older domestic oil sources aren’t producing like they used to:
Nationally, daily production of oil and natural gas liquids dropped last year to an average of 7.2 million barrels a day — a 36 percent decrease since peaking in 1970. At Prudhoe Bay, average daily production last year was about 450,000 barrels a day, a 72 percent drop from its peak.
With demand increasing domestically and abroad — particularly in China and India — supplies are being pushed to their limit, sending crude oil prices to record highs. The world has gradually lost spare pumping capacity that used to serve as an emergency reserve that could be opened as needed to moderate prices.
From our leaders:
Lawmakers from both sides of the political aisle have been calling for energy plans that they say will shake dependence on foreign oil, contending national security is at risk.
Good luck with that idea:
Imports now account for 58 percent of net oil consumption, according to the Energy Department’s Energy Information Administration. In another two decades that number is forecast to climb to 68 percent.
Bottom line, there’s not a lot of American oil left. And those who hold increased domestic drilling up as the solution to high energy prices are sadly mistaken.
“Bottom line, there’s not a lot of American oil left.”
Are you sure? I thought the greater imports was a reflection of the lower price of foreign oil – particularly Saudi oil – because of lower average extraction costs.
As a practical matter, I’m not sure how much difference there is between having little oil, or having oil that is very expensive to extract. From the consumer’s standpoint, it’s about the same.