Remember that news story last week about the major new offshore oil find in the Gulf of Mexico, the one that is supposed to really help our oil reserves and all that? Made the front page of a lot of papers, including
USA Today.
I wonder if these details will also be reported as prominently (or at all) by the ultra-super-duper liberal media? Details (quoted from the source) below the fold...
The announcement claims that the discovery could increase US proven reserves of oil by as much as 50%. However, the total amounts are highly speculative. Additionally, the discovery likely won't impact oil markets but could potentially impact natural gas markets since the discovery is probably mainly natural gas. The area will not come online for at least 4 years and, at a full rate, for at least 7 years. Further, it is likely that there are political motivations behind the announcement, as the vote to open offshore drilling in the United States is upcoming in the US Senate.
[skipping some technical details...]
6. The US Senate is weeks away from voting on the lifting of the 25-year ban on offshore drilling off the majority of the coasts in the US. This offshore drilling bill was approved in the House of Representatives but political analysts believe the bill will face more opposition in the Senate. The oil industry stands to make high profits if Congress will open up Florida and the Offshore East coast to drilling. To date the offshore drilling bill has not been approved by both houses because of environmental interests. A large potential oil "discovery" in the Gulf would provide evidence that the passing of the offshore oil bill would be beneficial.
7. Related to point #6, the announcement is reminiscent of the Mexican "huge oil discovery" announced last year, of a possible 10 billion barrels, which was quietly revised this year to around 43 million barrels, a downward revision of 99.57%. This similar "discovery" was made in Mexico last year a few months before the Mexican parliament was to vote on Pemex (state oil co)'s budget and rights to expand drilling. This illustrates the potential political pressure to announce oil and gas discoveries.
Peak oil, anyone?
Cross posted to my blog,
Carpe Datum.