The Real Target Of Obama's War On Oil
Massive oil reserves that could dramatically lower the nation’s reliance on foreign crude would likely be ignored by Big Oil if President Obama makes good on his promise to kill lucrative industry subsidies, according to experts promoting new oil discoveries.
Worse for consumers: If the barrel price is dramatically cut below about $100 the potential profitability of drilling for the elusive shale oil would be squeezed even more, a double-whammy for an industry rushing to suck out so-called “tight oil” while prices remain sky high.
The potential for new oil is extraordinary: Up to 44 billion barrels of oil are now believed to be hidden in tight spaces deep in the earth, requiring sophisticated drilling procedures, including hydraulic “fracturing” of rock to find it.At a Tuesday energy conference sponsored by the Center for Strategic & International Studies and the U.S. Association for Energy Economics, experts said that oil deposits, if mined, would greatly reduce U.S. reliance on foreign oil. There is also even more natural gas hidden away in those tight spaces.
But cuts in subsidies and the write-down of capital costs would likely boost the price of drilling, said experts. “Maybe there is something lost if the government pulls out” of helping Big Oil, said Tyler Van Leeuwen, an oil market analyst.