Arctic Energy

We could all use some good news on the energy front. Therefore, the Interior Department’s U.S. Geological survey released on July 23 was most welcome.

The quick findings:

• “The area north of the Arctic Circle has an estimated 90 billion barrels of undiscovered, technically recoverable oil, 1,670 trillion cubic feet of technically recoverable natural gas, and 44 billion barrels of technically recoverable natural gas liquids in 25 geologically defined areas thought to have potential for petroleum.”

• “These resources account for about 22 percent of the undiscovered, technically recoverable resources in the world.”

• “Exploration for petroleum has already resulted in the discovery of more than 400 oil and gas fields north of the Arctic Circle. These fields account for approximately 40 billion barrels of oil, more than 1,100 trillion cubic feet of gas, and 8.5 billion barrels of natural gas liquids. Nevertheless, the Arctic, especially offshore, is essentially unexplored with respect to petroleum.”

The point made by USGS Director Mark Myers is worth highlighting: “Before we can make decisions about our future use of oil and gas and related decisions about protecting endangered species, native communities and the health of our planet, we need to know what's out there. With this assessment, we’re providing the same information to everyone in the world so that the global community can make those difficult decisions.”

The U.S. and the rest of the world clearly need to increase energy production wherever possible. The best way to do that is not through politicians deciding to pick energy winners and losers through the subsidies game, but instead, by removing governmental obstacles and letting the market work.