Use Our Oil

One way to decrease dependency is to produce your own.

It’s There, but is it worth drilling?

The United States has a trade deficit of over $830 trillion. Much of this comes from the importation of oil, some months reaching almost 25% of the trade deficit. Imported oil accounts for about 67% of American oil consumption.

However, the US does produce oil, and even exports it. But most of US crude exports are sent to Canada, to be refined and sent back as gasoline. American oil production has decreased over the past decades and now stands at its all time low in 50 years. While the US produced 8 to 9 million barrels a day in 1986, it now produces around 5 million per day.

Until recently, many believed the US had wells on almost all of its oil supply. But it has become clear that there is actually an abundant supply of untapped oil of the US continental shelf, in Alaska, and throughout the Midwest. Many of these sources are more difficult to reach than traditional Texan oil wells, but reaching the oil is possible. Cuba is already drilling on the American continental shelf in international waters. In some states, such as California, oil companies believe they could begin production within a year.  More and more people are asking:  shouldn’t we use our oil?

So what then is keep the United States from increasing oil production? It is simple: the Democrats in Congress. Recently, President Bush lifted the Executive moratorium on offshore drilling ( a policy put in place by his father ). But a Congressional moratorium still exists and will not even come to a debate unless the Democratic leadership (Pelosi and company) bring the measure to the floor. Republicans have attempted to bring up the issue, but their efforts have been squashed. When a Republican lawmaker tried to bring an oil amendment to the Appropriations Committee, Chairman Obey (D-WI) refused to hear it and pledged to hold no new appropriations for the rest of the year. Democrats have been so opposed to debating any oil legislation, they will not even finish the FY2009 budget on time.

In this political summary, we have ignored an important issue. Would allowing offshore drilling be a good policy? We know that demand for oil has increased and that the US has the potential for increasing supply. But what about the environmental effects? Would the increase in production have a noticeable affect on gas prices?

Both of these questions are not easy to answer. What we do know is that there has not been a major US oil disaster in the last two decades. We know that other countries have and are successfully drilling oil around the globe. We know that the same week that Bush lifted the executive moratorium on oil (although it did not increase production) crude oil dropped fourteen dollars a barrel, the first drop after weeks of increase.

Oil is a limited resource, it will not last us forever. It is good to see gains in alternative energy sources such as increased wind farms and the production of new solar plants. GM is about to release their first electric car and hybrids sales are increasing. Some argue that increased oil production will curb growth in alternative energy. They argue that we are seeing increased alternative energy  because of high oil prices. While there may be a correlation, almost all projects gaining attention were started long before the days of 4$ a gallon gasoline.

The future of America looks certain and oil is not a part of the picture. But allowing offshore drilling may be what America needs to smooth the inevitable transition. The United States can reach sustainable energy without punishing the consumers.

I say… Use Our Oil!!