MercoPress. South Atlantic News Agency

Chevron estimates US has recoverable oil and gas equivalent to 35 years of Saudi production

The Gulf of Mexico oil spill hangs heavily over the industry

Conservative estimates put the size of recoverable crude oil and natural gas offshore the United States at the equivalent of nearly 35 years of Saudi Arabia's production. Chevron made the case emphasizing the need for development of US offshore resources.

US government estimates suggest federal lands (onshore and offshore) alone hold technically recoverable resources of roughly 116 billion barrels of crude oil and 650 trillion cubic feet of natural gas. That is enough crude oil to power about 225 million consumer vehicles for nearly 17 years and enough natural gas to heat 60 million homes for nearly 160 years.

“To grasp this historic opportunity, the US government must ensure America's tax, regulatory and access policies support developing our natural resources safely and responsibly. Only with the proper framework will the energy industry continue to invest in America, creating jobs, stimulating growth, increasing government revenues, and enhancing our energy and economic security now and in decades to come”, points out the Chevron report.

As of now, nearly all of the eastern US Gulf of Mexico, the entire Atlantic and Pacific coastlines, and the majority of offshore Alaska, more than 85% of the U.S. Outer Continental Shelf, remain off-limits to crude oil and natural gas exploration and development. Additionally, 60% of federal onshore lands are off-limits or subject to significant access restrictions. A recent Wood Mackenzie study estimated that increasing access to US hydrocarbon resources and the approval of more pipelines could support an additional 1.4 million jobs by 2030. It also could raise more than 800 billion in cumulative government revenue by 2030.

“If the United States encourages responsible development of our abundant energy resources, it could help create more than a million good-paying jobs for Americans, add billions of dollars in government revenues and lead to greater energy security between now and 2030. In the process, we could reduce our dependence on oil imports, giving us greater control over our energy future”.

The bottom line is that the energy economy is ready to drive the country forward. But it requires a policy agenda that enables, not compromises, that goal, concludes the report.