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Energy Exports

March 19, 2012 – 5:16 pm

One of the brightest spots of our economy is in the Midwest, specifically in the Dakotas. Oil is booming thanks to the ‘Fracking’ Techniques where oil trapped in shale rock formations is fractured and the oil and natural gas are released.

This technique is not new. It has been around for about 20 years but today it is vastly improved and efficient. Recent news about causing water well pollution are probably due more to poorly maintained water wells than anything else.

Just so we all understand what has happened, all the new production of oil is not on government land but on private property and farmers and ranchers are getting wealthy leasing out mineral rights. Our government has had nothing to do with this Midwest economic boom or the hunt for new oil resources. it has all come from oil companies looking for more sources of income and finding it.

The oil companies have dramatically increased their reserves of recoverable oil. Recoverable reserves in shale oil have gone from a few hundred millions of barrels of oil from a few years ago to billions of barrels of oil and continues to grow at an accelerating rate. All this is happening and has been happening in the Midwest.

Can it happen in the West, California in particularly? Yes, but it won’t. It ‘can’ happen because inside the state borders are shale oil deposits which could be very significant but it ‘won’t’ happen because the laws in the state make it virtually impossible to extract.

What is sad is that oil, natural gas and coal could become a huge boon for the U.S. We are blessed to have access to this energy resource inside our borders and we could become a big exporter but unfortunately we are also blessed with a cadre of roadblocks. I am not suggesting we destroy our environment getting to these deposits but is seems monumentally irresponsible not to exploit it.

Good Trading
Steve Peasley

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