Today, President Obama repeated the Left-wing Mantra that the “United States has only two percent of the worlds Oil reserves but uses Twenty Percent”. He repeated this statement for emphasis trying to negate that the United States has any control over oil prices. The problem is that He is repeating leftest propaganda and using misleading information. With most, DC Bubble communication techniques, there is some truth to his statement. It is true that at the current level or production, which he has control over, America uses over twenty percent of oil in production. It is also true that our current level of production with existing oil wells, that we are producing two percent of the current oil. It is further true that the current wells are providing less and less oil each year.
Where President Obama is misleading the public is he is not speaking of the untapped oil wells or the reserves that are currently in the ground. Republican Senator Lisa Murkowski (R-AK) attacked these misstatements in an Op-Ed in the Washington Post back in April. We decided to provide a portion of her Op-Ed here along with other data to provide some insight on the simple fact that while oil production is up in the United States, it is a result of the former Administration. President Obama has consistently reduced the number of licenses for further exploration and has halted potential job producing Oil Pipeline projects from one of the worlds largest oil reserves, Canada.
Setting he record straight on America’s oil
The president said this month that “even if we doubled the amount of oil that we produced, we’d still be short by a factor of five.” That’s simply incorrect. Doubling our production would trim imports nearly in half. Boosting production by a factor of five is not currently feasible, but if it were, it would make the United States the world’s largest producer.
Perhaps most misleading is his claim — also made by others — that the United States has “about 2, maybe 3 percent of the world’s proven oil reserves; we use 25 percent of the world’s oil.” That line is crafted to make the audience think that America is both running out of oil and using oil at an unsustainable rate.
In truth, “reserves” is just one of several categories used to quantify oil and, on its own, misrepresents America’s potential. To classify a barrel as a reserve, you have to drill, prove the oil is there, and meet strict criteria established by the Securities and Exchange Commission. It’s not an easy process.
Right now, America has an estimated 22.3 billion barrels of oil reserves. But that’s hardly the whole story. A recent Congressional Research Service report that I commissioned with Sen. Jim Inhofe of Oklahoma found that the United States’ recoverable oil resources are estimated at 157 billion barrels. That is seven times as much as our reserves and doesn’t even include the roughly 900 billion barrels of unconventional oil resources nearing commercialization.
Consider this: While our nation’s oil “reserves” have never reached 40 billion barrels, we’ve managed to produce nearly 200 billion barrels since 1900. Between 2008 and 2009, America’s oil reserves rose more than 8 percent, even as roughly 2 billion barrels were produced. That was made possible by our substantial resource base. Reserves alone have never provided the full picture.
Those who repeat the 2 percent argument are falling into an old trap. Government officials have claimed since 1919 that America is “running out of oil.” Nearly a century later, we are still the world’s third-largest oil producer, behind Saudi Arabia and Russia. Our consumption levels may seem high, but in fact they’re directly proportionate to America’s share of the global, petroleum-based economy.
Relying on reserves to depict America’s oil excludes all of the lands that have never been explored. My home state of Alaska, for example, holds an estimated 40 billion barrels of oil — the equivalent of more than 60 years’ worth of imports from the Persian Gulf — that are excluded from reserve figures. Ignoring that supply underestimates America’s oil and leads us away from one of the best solutions to our various energy challenges.
United States Sitting On World’s Largest Untapped Oil Reserve:
The United States is sitting on the world’s largest untapped oil reserve. A natural resource that would not only mitigate the over $400 Billion sent overseas to other countries but could create untold millions of jobs and put the country on a sound financial footing.
The untapped reserves are estimated up to 2.3 Trillion barrels, nearly three times the reserves held by the OPEC countries and sufficient to meet 300 years of demand, at today’s levels — for auto, truck, aircraft, heating and industrial fuel, without importing a single barrel of oil.
- Congressional Research Service – U.S. Fossil Fuel Resources: Terminology, Reporting, and Summary
- THE OIL RESERVE FALLACY: Proven reserves are not a measure of future supply
- There is No Shortage of Oil