Sarah Palin Was Right #19: IBD on Domestic Energy Reserves

A recent report from the Congressional Research Service contains some startling information: when U.S. energy resources are counted and then converted to their barrels of oil equivalent (BOE), we are literally sitting on the largest energy reserves in the world. Via Investors.com:

According to the CRS, the U.S. has 1,321 billion barrels of oil (or barrels of oil equivalent for other sources of energy) if you combine its recoverable natural gas, oil and coal reserves. Russia is close behind with 1,248 billion barrels BOE. Other energy-producing nations, including many that export oil to the U.S., lag behind.

Of course, much of our world-leading reserves are off-limits by government edict.

Former Governor Sarah Palin of Alaska, commenting on how the current administration's pandering to special interest groups keeps us dependent on foreign sources of energy:

This nonsensical opposition to American domestic energy development continues to this day. Apparently the Obama-Biden administration only approves of offshore drilling in Brazil, where it will provide security and jobs for Brazilians.

The editors at Investors.com point out that the Democrats' idea of exploiting only renewable domestic sources of energy is not only an expensive notion, but in our weakened economy, it is depriving Americans of badly-needed jobs*:

We are dependent on fossil fuel energy and will be for some time. The folks at Peabody Energy say replacing coal would require 2,400 times more solar generation, 40 times more wind power, 250 new nuclear plants, almost double the U.S. production of natural gas, 500 hydro plants the size of the Hoover Dam or halving electricity consumption.

"Our overwhelming coal, natural gas and oil resources represent tens of trillions of dollars in wealth and millions of American jobs," said Sen. James Inhofe, R.-Okla., who released the CRS data.

[...]

Sadly, the report stated that the U.S. has tapped into only 13%, or 21 billion barrels of its oil reserves, with the other 87% still untouched.

Palin reminds us that the U.S. dependency on foreign energy sources is not just economic foolishness, but also as a failure to make this nation a more secure one:

Through this massive transfer of wealth, we lose hundreds of billions of dollars a year that could be invested in our economy. Instead it goes to foreign countries, including some repressive regimes that use it to fund activities that threaten our security.

Reliance on foreign sources of energy weakens America. When a riot breaks out in an OPEC nation, or a developing country talks about nationalizing its oil industry, or a petro-dictator threatens to cut off exports, the probability is great that the price of oil will shoot up. Even in friendly nations, business and financial decisions made for local reasons can destabilize America’s energy market, since the price we pay for foreign oil is subject to rising and falling exchange rates. Decreasing our dependence on foreign sources of energy will reduce the impact of world events on our economy.

In the end, energy independence is not just about the environment or the economy. It’s about freedom and confidence. It’s about building a more secure and peaceful America, an America in which our energy needs will not be subject to the whims of nature, currency speculators, or madmen in possession of vast oil reserves.

* The U.S. now has double-digit unemployment, according to the Labor Department

- JP