An Evaluation Of Domestic Oil Fields As A Mineral Resource

It is a generally accepted and widely discussed fact that the world in general, and the United States in particular, face a shortage of energy at the present time which will become worse in the future. There is, however, no sign of a similar concensus as to the actions which would prevent or overcome this expected shortage. An immense variety of solutions has, however, been put forward, ranging from the purely political to the outer fringes of sophisticated technology. One resource which surprisingly is often only cursorily included in this discussion is the immense known petroleum reserve lying within the United States. When this subject is discussed, indeed, it is usually in the context of the improvements in production or new discovery rate that could be expected to result from possible politico-economic actions that would raise the real price obtained for domestic crude. This interest in the potential for improved domestic production is undoubtedly justified, but very little attention is normally drawn to the fact that even under the most favorable policy framework the majority of the oil that has been, or will be, discovered will remain in the ground due to the inherent limitations of production through surface wells.