Friday, February 10, 2012

Can The U.S. Become Energy Independent?

Almost certainly not.  The Atlantic:
There are plenty of good reasons for the optimism. With the development of its massive shale deposits, the United States has become the world's single largest producer of natural gas. We're so awash in it that domestic prices have plummeted to historic lows. Advances in drilling technology have also made it possible to access hard-to-tap "tight" oil reserves in states such as North Dakota. Analysts believe those fresh crude sources could yield 2.9 million barrels of oil a day by 2020, up from 900,000 today. Meanwhile, cars are getting more efficient, and fuel use has dropped after soaring during the last decade, which frees up more energy production for export. According to Bloomberg, the U.S. is already getting 81% of its energy from domestic sources, the largest share since 1992, and up 10 percentage points since 2005.


Then, there's Canada, which now claims the world's third largest oil reserves thanks to Alberta's petroleum rich tar sands. That's important because Canada and the U.S. are family when it comes to global trade. They're currently our single largest oil supplier. We sell them 75% of their imports and buy 75% of their exports. The National Petroleum Council, which advises the White House on energy issues, believes that by 2035, the two countries combined could more than double their oil production to 22.5 million barrels a day, enough to satisfy their current total consumption.


If you're not too concerned about how much carbon gets pumped into the atmosphere over the next few decades, these are all great developments. (If you do care about global warming, these are all reasons to have a stiff drink, and perhaps consider moving far from the coasts). But even if we're approaching energy independence, the chances of ever actually getting there are rather slim, especially if our economy is still running on oil in 20 years.
Who wants to wager that we'll never come close to those production numbers?  Let me go out on a limb and say the National Petroleum Council is probably prone to being overly optimistic.  We just can't afford to continue our oil-dependent economy like it is.  That oil isn't easy to produce, and is just going to waste money pretending we can continue to drive like we have the past fifty years.  Times are changing, and we need to overhaul our lifestyles.  The idea we can drill our way to prosperity is just wrong.

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