Tag: shale oil

We Are Big Oil

Interesting:

The United States has overtaken Saudi Arabia to become the world’s biggest oil producer as the jump in output from shale plays has led to the second biggest oil boom in history, according to leading U.S. energy consultancy PIRA.

U.S. output, which includes natural gas liquids and biofuels, has swelled 3.2 million barrels per day (bpd) since 2009, the fastest expansion in production over a four-year period since a surge in Saudi Arabia’s output from 1970-1974, PIRA said in a release on Tuesday.

It was the latest milestone for the U.S. oil sector caused by the shale revolution, which has upended global oil trade. While still the largest consumer of fuel, the rise of cheap crude available to domestic refiners has turned the United States into a significant exporter of gasoline and distillate fuels.

I’m sure Obama’s defenders will be rushing to credit him for this while his detractors will be rushing to … I don’t know, claim the numbers are skewed. But Obama’s primary role in this has been to stand out of the way. The truth is that this revolution has been more than a decade in the making as rising oil prices spurred innovation and made shale oil economically viable.

The thing is that this is exactly what conservatives and libertarians predicited. When oil prices spiked many years ago, the usual suspects blamed evil Arabs, evil oil companies, evil oil refineries, evil government and the evil Bush Administration with its evil ties to Big Evil Oil. Had we pursued the path of price controls, the result would have been shortages instead of a boom. People who understand economics pointed out that this was simply a surge in demand and that the demand would create new supply — either through new oil resources or energy tech innovation. That’s exactly what happened. And considering that the energy industry is the only thing propping up our economy, the Great Recession would still be going on had we listened to the naysayers.

I’ve quoted Lee before on this subject but it’s always worth repeating his insight:

Oil will never run out. Ever. There is too much money to be made in the technology industry for the world to keep relying solely on oil. We don’t need nightmares, we don’t need screaming histrionics, we don’t need end of the world scenarios. What we need are smart people taking the problem seriously, and finding workable, reasonable solutions to transition the world from a petroleum economy into the next generation.

One day, the oil industry will die. We probably won’t run out — proven reserves are gigantic (and that’s not even including natural gas and methane clathrate). But oil will fade because we’ll make some breakthrough on nuclear fusion or vacuum energy or whatever that makes cracking open the Earth to extract a mineral slime un-economical. When that happens, we’ll be fine. Fossil fuels are a fraction of our economy. But petro-states like Saudi Arabia will collapse.

In the meantime, technological progress is producing an economic goldmine. Mainly because we let it do so.

If you still think they are not hostile to modernity

Just read along. In a blatantly obvious move to pander to their insane green constituents, the Obama Administration has yet again made a decision to prevent us from getting more resources to keep energy prices from going higher. Here’s the meat of the issue

The Obama administration said Friday that a massive pipeline carrying oil across much of the United States must remain shut down until federal regulators are satisfied that it can operate without future leaks.

TransCanada’s Keystone pipeline leaked twice last month, fueling opposition to a pending expansion of the project, which is undergoing a wide-ranging federal review.

Let’s also prevent people from driving cars, riding trains, or flying planes, just to name a few, until we can make sure there are not going to be future accidents in any of these endeavors as well! It’s not as if giving us details of these leaks would have helped us understand the problem either, huh. What caused them? How big were they? How fast were they repaired? Is it again much ado about nothing or just the Obamanauts using this as an excuse to yet again stifle our energy resources?

And what caused these leaks is very important to me? I wouldn’t be surprised it was done by some environmentalist wacco that wanted just this result. These people are not just insane, they are evil. They pull stunts like this constantly and the media never reports on them.

The Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a “corrective action order” Friday informing TransCanada that it must take a series of steps before resuming normal operations at the pipeline, which runs from Canada to Oklahoma.

How much you want to bet that these “corrective actions” are flat out insane if not outright impossible, and that what we have here is simply an attempt to shut this down for as long as possible? And don’t argue with me that the Obama Administration would have to be insane to do yet another thing that hurts the economy so close to an election. They care little about the economy, jobs, or the people that won’t vote for them anyway. This is flat out a political payment to their green constitutency.

“After evaluating the foregoing preliminary findings of fact, I find that the continued operation of the pipeline without corrective measures would be hazardous to life, property and the environment,” Jeffrey Wiese, PHMSA’s associate administrator for pipeline safety, said in the order.

PHMSA is mandating that TransCanada provide a detailed “restart plan,” conduct “mechanical and metallurgical” testing, and analyze the pipeline components that failed

Why no details of what went so “horribly” wrong from this fella? I for one would love to know whose “life” and “property” was put in danger by a pipe that supposedly runs in the middle of nowhere. Methinks nobody was in danger of losing life or property, and that this was all about the third part of this moron’s statement, “the environment”, and then, not in the sense that these people worried about the environment, but about the insane morons that worship Gaia and their votes.

These green retards don’t want Canadians going after shale oil, of which there is so much in Canada that it makes the Saudi reserves look like a small piddle, because access to this oil would undermine their efforts to kill the sue of oil completely. And since the Canadian government isn’t insane enough to cut its economic jugular by ending this lucrative, job creating enterprise, they are doing it by preventing them access to the consumers. Want proof?

In addition, the order instructs TransCanada to conduct a review of its entire pipeline system within 60 days, among other things.

The order comes at a politically sensitive time for TransCanada. The company is seeking federal approval to expand its Keystone pipeline to carry Canadian oil sands from Alberta to Texas.

Texas! The Keynesians and Gaia worshippers are basically hoping to stop delivery to the consumers in Texas. It’s a double victory if they pull it off. First they stop the Canadians from getting the shale oil. Then one could even argue that they might be inclined to think they scored a win because of how they impact the Texas economy. Would you be surprised to find out that these idiots did something like this so they could then make the shitholes the left has run into the ground – like California or Michigan – more palatable? I certainly wouldn’t after these last 3 years.

In this horrible economy the left is putting agenda and their Gaia religion in front of jobs and access to energy yet again. I am sure that when job numbers again show negative or negligible growth, and energy prices go up, that they will be baffled at it and claim it is all unexpected.