Do you remember Jed Clampett and the Beverly Hillbillies? This was a crazy show I watched as a kid about a family of hillbillies moving into one of the most exclusive mansions in Beverly Hills. Quite a crazy story back then, but it feeds into the pioneering aspect of being an independent American and our search for riches.
There’s a line in the opening song that goes like this “…he was shootin’ at some foooood, and up from the ground came a bubblin’ crude. Oil that is. Black Gold, Texas Tea.”
The Beverly Hillbillies ran from 1962 to 1971. The series ended just before we entered a time of massive oil shortages and gas rationing. Long lines in 1973 and 1979 were commonplace from coast to coast as OPEC flexed its muscle at the US. It was during this time when the Carter Administration told us “the world’s oil would disappear in the first decade of the 21st Century.” This prediction couldn’t have been further from the truth.
Right now. At this very minute. You are a witness to the birth of American Energy Independence. For years it’s been happening in front of our eyes. Our dependence on foreign oil began to decrease in 2011 and has continued to the present day. But now it is here. And here to stay.
We have discovered a 100-year supply of natural gas and one of the largest oil fields in the country. We are reducing our imports of foreign oil and gas. We are exporting oil to other countries. Up until just a few years ago, we didn’t even have a facility to liquefy natural gas for export. (everything had been setup for the reverse process)
Here’s a great graph below from First Trust that illustrates our imports and exports:
There are three large basins of oil in the US: Bakken, Eagle Ford, and Permian. According to a story in the San Diego Union Tribune from July 5, 2016, “The U.S. is sitting on 264 billion barrels, 8 billion barrels more than Russia and 52 billion more than Saudi Arabia.”1 It is estimated that the Permian Basin in west Texas alone is larger than the oil reserves of Saudi Arabia.
The opportunities that are coming in the energy business in the US will grow exponentially. Many millennials will find themselves working in this industry. We are becoming more efficient in energy exploration and production every day, and by converting our electrical plants and large machinery to natural gas we are reducing the amount of emissions released into the atmosphere.
Reference 1 Jimmy Carter : World To Run Out Of Oil By 2010
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