Last week, we announced a major oil and natural gas discovery in the Gulf of Mexico – one of the largest there in the last decade. For those who assume that oil only comes from the Middle East or other overseas locations, this find might come as a surprise. It shouldn’t. North America has enormous untapped energy potential that we could develop for American consumers – if governments provide access and uphold sound, stable regulatory frameworks.
Deepwater oil and gas exploration and production in the Gulf of Mexico is just one of several sources of growth in North American energy supplies. A report last year from Cambridge Energy Research Associates found that in 2009, deepwater activity in the Gulf of Mexico helped the United States grow its domestic oil production for the first time since 1991.
In addition, so-called “unconventional” supplies of energy – including shale gas and Canada’s oil sands – have helped revolutionize North America’s energy landscape.
For example, just take a look at the bar graph at left. It shows the geographical breakdown of ExxonMobil’s global oil and natural gas resource base. You’ll see that about half of our company’s resources are found in the Americas.
A sizable part of our resource base is right here in the United States, which isn’t surprising given a 2010 study by the Congressional Research Service that concluded the U.S. “remains among the top nations in proved reserves of all fossil fuels.”
This is positive news for the United States. It means that the U.S. energy industry – which fueled America’s economic rise over the past century, not to mention generations of technological innovation, good jobs and tax revenue – still has lots of room to grow.
The question is whether we will, as a country, take full advantage of the opportunity provided by our energy resources.
Take “unconventional” natural gas production, for example. At the center of the debate is hydraulic fracturing, the process used to release the gas from shale and other rock formations. Hydraulic fracturing itself is not “unconventional” – it’s been used on more than a million wells worldwide for the past 60+ years. Greater production of America’s vast natural gas resources became viable when hydraulic fracturing was combined with horizontal drilling, another proven production technique. But concerns and misconceptions about the safety of this process have led some states to make moves to ban hydraulic fracturing, despite studies that show it can be done safely (see my blog on a recent U.K. study on hydraulic fracturing).
Another example is Canada’s oil sands. Canada is already the No. 1 supplier of oil to the U.S., and more than one-quarter of America’s daily oil needs could come from reliable Canadian supplies by 2030. Yet policies already in place and some currently in debate attempt to restrict the supply of Canadian oil to the U.S.
Policies that support safe and reliable access are critical to our nation’s ability to benefit from the vast supplies of North American energy. And the payoff isn’t just more energy – producing these resources could go a long way toward addressing some of our nation’s biggest economic challenges: high unemployment and government deficits. Here are just a few of the benefits of policies that support access:
- More jobs. One study found that opening up federal lands that Congress has kept off-limits for decades could generate 400,000 new jobs by the year 2025. These are often high-paying jobs; one study showed that oil and gas industry exploration and production wages were more than double the national average.
- More government revenue. Back in 2008, in just that year alone, more than $20 billion was distributed to federal and state governments from onshore and offshore oil and natural gas production, according to the Department of the Interior. Actions such as opening up access to resources could generate as much as $1.7 trillion in government revenue over the life of those resources, one analysis showed.
- A host of other benefits, including: reduced dependence on imported energy, and more of the energy and raw materials used across a wide spectrum of U.S. industries.
Americans know that to truly revive the economy, we need to do it from the ground up. We can start with the energy resources that are right under our feet.
I do not speak English, Spanish and understand
Tranlate Google:
Hello, my name is Sergio P. Mascarenhas, Brazil, 53, a native of São Paulo – SP Brazil, technical
agriculture, formed in Jacareí SP.
Since 1985 I live in Linhares – Es and I have worked in sales and systems design
irrigation with constant travel.
The more than eight years “during the first blackout I have been reading and researching my theory generation
clean, renewable energy now decided
seek support for only thinking will not lead anywhere.
Can be implemented in a short time, a prototype can be made and tested without problems and with
I’m sure will show right in my
theories, will determine the size and amounts needed.
In a few years will be an example to the world of change and sustemtablilidade. you have everything
need to develop my project, body
technical, workshop, etc..
I need a personal grant and a technical group of engineers to want to be structures
continuously following closely the
development of all phases of the project and possible variations of shapes and designs.
The generation of clean and sustainable energy in the idealized case is simple and requires nothing cheap
“Preposterous” and everything is at… read more »
…hand.
After that done, and patentable together can have a small percentage of participation from
the start of commercial operation.
In Brazil it is difficult to get support for not being firm and not have money or have ongoing
higher, or some entity be formed.
Recently I decided to write to different companies in different countries and I know that somewhere
someone or some company will help me develop
this idea and many others will be sorry to leave
pass without giving due importance to present that opportunity.
I’m sure you have a revolution in the simple way to generate natural energy.
I know the work of a group of engineers is expensive, but from knowing the rest is theory
fast and simple.
I do not want a scholarship, do not want to work, do not want to create an ONG, I am not seeking
get on TV and neither am wanting to do
no time to lose but I know that running a project that is viable and after talking with
some people decided able to contact
people who say they want the same change. accepted and some have much to offer.
I support, I grant, I want shareholding dividends permanent.
And I will not give up until someone seriously listen to what I say.
Grateful
That’s great. When will gas prices go down? Great idea returning to the gulf, lets see how many more acres of wetlands we can destroy. Yes, I am fully aware that was BP’s screw up but you’re all the same. Out for a profit and nothing more.
Spoken like a true brain-dead loon.
Did a quick search on the current environmental evaluations and there is little, if any, indications of the “catastrophy” that was predicted.
You’re in an excellent position to develope and control alternative energies. Pull one out of the dungeon and you could save the world.
I use to haul gasoline for Gulf Oil when it was in Michigan, What i would like to know is why is deisel,No.1 and No.2 fuel oil, and Kerosene so much higher than gas, it use to be 50% cheaper, and i know it takes less to refine it.Thanks
Additives required by the government add to the price of Diesel…
Is it possible to post the number of people Exxon employs in the oil and natural gas industry in the U.S. from an economist’s point of view? How much of exxon’s profits are reinvested in the business, employing people, into R&D, versus profits paid out to stock holders on simple percentages?
Thank you,
Anders, Thanks for your question. ExxonMobil employs more than 84,000 people in our global operations, of which about 34,000 are in the United States. When you look at the total contribution to employment made by ExxonMobil and other oil and gas companies in the U.S., the numbers are very significant: according to a recent PricewaterhouseCoopers study the industry supports about 9.2 million direct and indirect jobs in the U.S. Regarding how much we re-invest in the business, in 2010 ExxonMobil invested a record $32 billion in capital and exploration – more than our earnings of $30 billion during that time frame. During 2010, ExxonMobil returned more than $19 billion to shareholders through dividends and stock purchases.
Mr. Cohen: Thank you, thank you, thank you. I just discovered this blog site when looking at the local paper website. As an Exxon ex, it is good to see the Corporation sticking up for itself and the industry. The new graphic illustrations are excellent, in particular the gas reservoir development illustrations with horizontal drilling and hydraulic fracturing. Its about time the truth got out even if its the internet only for now. I won’t hold my breath to see this on broadcast media. Keep it up. And thanks again. Martin.