Michael, personaly I have no problem with it at all, but if anyone seriously believes that drilling new fields will lower prices their nieve, take a look at North Sea oil (Brent crude) that produces less gasoline per barrel and is only $1 per barrel cheaper, I believe that Gulf crude is also of fairly low quality (like Texas crude), opening new fields (unless very, very high quality crude) will have little or no effect on gas pricing.
frankly,I don’t believe mankind has even dented the earths oil pools in just over a hundred years, and I have seen suggestions by geologist that agree. It has been awhile, but if googled, I bet they could be located. Oil being produced naturally was not a one time occurance, more is being made all the time. I know some claim it takes millions of years, but they said the same about coal also.
I doubt it Ken, but stranger things have been known. The problem is those who think drilling in FL or Alaska is the cure, remember the growing economies of the 3rd world will make the western worlds energy consumption seem small.
Somewhere I have an article from 2004 or 2005 written by Peter O’Dell of Erasmus University that states we have added 1500 billion barrels of oil to the world oil reserves since 1970, while world consumption over that time totaled 800 billion barrels. I could be incorrect, but I believe that Hubbert’s peak was also based upon our ability to recover only 20% of the oil from any given reserve, whereas today we can recover about 35% and some oil industry folks have stated that if oil is at 80 bucks a barrel it is then profitable to recover up to 55% or so. That amount of extra recovery would certainly add to the total reserves.
I also read an article some time back that oil companies (yes those dreaded bastards that make somewhere between 7 and 9 cents per gallon net profit) stated that they are finding that oil fields that were thought to be dry have actually been refilling. That may have been in the WSJ. In that case it may back up the 50 year theory that oil is not “fossil fuel” from dinosaurs, but rather an abiotic process from molten lava and other geologic stuff way on down there in the earth.
China coming into the oil age will certainly increase usage over the next decades, but technology should also make it able to recover more oil from each well.
I’m all for other types of energy, but ethanol ain’t one of them. When it becomes profitable for someone to “discover” an alternative fuel, you can bet it will happen quickly!
Just my thoughts for the night.
Oh, and none of this helps the wallet at $3.43 for premium!