Technically Speaking
We have a lot of oil here in America. Obama said we have only 2% of the world’s oil reserves. But John Hinderaker reminds us that
…very few Americans are aware of the technical definition of oil “reserves” that is enforced by the Securities and Exchange Commission. Under American law (other countries record as “reserves” whatever is in the ground), oil isn’t counted as part of our “reserves” unless it can legally be developed under current regulations, and it would be economic to develop at current prices. So when Obama says we only have two percent of the world’s oil “reserves,” he is documenting the extent to which the Democratic Party, by blocking energy development, is destroying jobs and making us all poorer.
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There is another problem when we attempt to quantify the amount of reserves, natural or processed. As we gain better technology we are able to better detect natural resources as well as process (or, in the case of petroleum, refine) resources previously thought of as too cost inefficient. When the trans-Alaska oil pipeline was built, in the mid 1970s, it was predicted to only produce for 10 – 15 years… it’s still producing. Likewise, processing oil from oil sands is a technology that has only recently been made cost effective. And there are still the reserves of kerogen tars that dwarf crude oil reserves.