(Warning: this post may offend some people’s sensitivities).
Note to readers and commentors: this sort of news may very disturbing to those of you that would like to see oil and gas soon run out. Be aware that I made all attempts to be as sensitive as possible so as not to hurt any feelings people have about oil and its ugly twin- gas. So no abusive comments about the find please. Also please note Director Mark Myers went out of his way to demonstrate the requisite need to show extreme sensitivity towards some people when publicizing such potentially disturbing information.
The US Geological Survey made the following announcement about some of the goodies it may have found up there in the Arctic Circle.
The area north of the Arctic Circle has an estimated 90 billion barrels of undiscovered, technically recoverable oil, 1,670 trillion cubic feet of technically recoverable natural gas, and 44 billion barrels of technically recoverable natural gas liquids in 25 geologically defined areas thought to have potential for petroleum.
The U.S. Geological Survey assessment released today is the first publicly available petroleum resource estimate of the entire area north of the Arctic Circle.
90 Billion Barrels of Oil and 1,670 Trillion Cubic Feet of Natural Gas Assessed in the Arctic
These resources account for about 22 percent of the undiscovered, technically recoverable resources in the world. The Arctic accounts for about 13 percent of the undiscovered oil, 30 percent of the undiscovered natural gas, and 20 percent of the undiscovered natural gas liquids in the world. About 84 percent of the estimated resources are expected to occur offshore.
“Before we can make decisions about our future use of oil and gas and related decisions about protecting endangered species, native communities and the health of our planet, we need to know what’s out there,” said USGS Director Mark Myers. “With this assessment, we’re providing the same information to everyone in the world so that the global community can make those difficult decisions.”
Yes I know it’s about 3 years supply at global demand of 86 barrels a day. However it’s wrong to look at these new finds this way. The potential find simply adds to marginal production by adding new supply. If we exploited these reserves at say 3 million barrels a day this would last 30 years. Any potential supply adding to reserves simply builds up our “bank balance”. Here’s hoping they get a move on exploiting these new potential reserves as it will help create downward pressure on prices. Note also the Gas reserves are potentially huge adding about 30% to the world’s reserves.
I guess peak oil may have to wait