Could the U.S. Affect Oil Prices by Developing More Resources?

May 17, 2008 04:33 PM
by findingDulcinea Staff
Oil prices have reached record highs, meaning some countries are looking for additional oil reserves. But should they go after them?

30-Second Summary

The fact that the U.S. has untapped oil reserves makes little sense when oil prices have surpassed $100 a barrel, writes Investor’s Business Daily.

Other countries have already begun looking for additional resources in reaction to record-breaking oil prices.

Brazil, for example has made two announcements about large oil field discoveries in recent months. “When prices soared, Brazil got busy,” according to The Guardian.

The United States reportedly has several billion barrels of its own untapped resources.

In 2006, a team of energy companies announced that they’d discovered an oil field in the deepwater Gulf of Mexico that held between 3 billion and 15 billion barrels of recoverable oil.

And in April 2008, the U.S. Geological Survey announced that the Bakken shale, a geological formation covering parts of North Dakota, South Dakota and Montana, could possibly hold up to 4.3 billion barrels of recoverable oil.

But the cost of developing these resources can run into the millions, which has caused some to question whether they should be accessed at all, especially when alternatives like biofuels exist.

However, “We need oil,” Investor’s Business Daily concluded. “And fortunately we have lots of it. But because of Congress’ unwillingness to go after it, we’re leaving billions of barrels untapped, driving up prices and causing untold economic hardship. This madness must end.”

Headline Link: Oil prices hit new high

Opinion & Analysis: What we have is expensive to extract

Background: The world’s new and undeveloped energy resources

Related Topics: Oil prices, peak oil and biofuels

Oil prices
Peak oil

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