Saturday, 31 January 2009

Massive Oil Deposit Could Increase US reserves by 10x

America is sitting on top of a super massive 200 billion barrel Oil Field that could potentially make America Energy Independent and until now has largely gone unnoticed. Thanks to new technology the Bakken Formation in North Dakota could boost America’s Oil reserves by an incredible 10 times, giving western economies the trump card against OPEC’s short squeeze on oil supply and making Iranian and Venezuelan threats of disrupted supply irrelevant.

In the next 30 days the USGS (U.S. Geological Survey) will release a new report giving an accurate resource assessment of the Bakken Oil Formation that covers North Dakota and portions of South Dakota and Montana. With new horizontal drilling technology it is believed that from 175 to 500 billion barrels of recoverable oil are held in this 200,000 square mile reserve that was initially discovered in 1951.

Although the oil may be recoverable, it may be left in the ground for political reasons. Geopolitics and corruption tend to trump developments that will lead to a more prosperous world. It will be interesting to see what happens here. A rich and educated US population is harder to manipulate, so who's going to allow that ?

[Posted at the SpookyWeather blog, January 31st, 2009.]

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