By: Tom O’Brien
As we fill up our tanks, it is costing us more and more everyday. The nauseating feeling we get when we spend $50 or $60 dollars to fuel our vehicles when it used to cost $30 or $40 is only going to get worst as oil prices continue to soar. Since we rely heavily on foreign oil, we are at the mercy of OPEC, since they regulate the price and supply of oil. Our economy has experienced a modest recovery, but if there is anything that can derail the recovery and cause our nation to plunge back into a recession, it’s the rising price in oil. As the price of oil continues to soar, it’s a logical intuition as to how low our economy can go.
Since the 70’s, we have been led to believe that all the oil in the world is either in the Middle East, Venezuela, beneath the ocean floor, or in Alaska. While those areas do hold a considerable amount of the worlds known oil reserves, recent discoveries have yielded promising potential into the amount of oil right here in our back yard. A recent report by the United States Geological Survey found that an area in Eastern Montana, Western North Dakota, South Dakota, along with parts of Canada known as the Bakken formation has an estimated 3-4 BILLION barrels of oil in reserves that are thought to be recoverable.
The Bakken formation is nothing new; oil was first discovered in this region several decades ago. In fact, companies started extracting oil from this area over 50 years. The problem is, throughout the last several decades oil prices have generally been low. Though warning signs of the volatility of our oil supply have come up a few times, the problem is that complacency develops when the price of oil is low, so we stick to the same old routine of importing most of our oil from the Middle East. Had we invested greater into finding and extracting domestic sources of oil such as the Bakken formation and other areas back in the 70’s when we first got a glimpse of the volatility of our oil supply, there is no telling how much oil we could be producing for ourselves.
Along with the Bakken formation, there several other areas that has significant amounts of oil reserves that can be tapped into. If the price of oil continues to soar, our economy could collapse into a depression, dwarfing the recent recession we experienced. If we can start getting serious about supplying ourselves with oil, we can tell OPEC to go pound sand and stop letting them control us like puppets. We need to start investing greater toward research and development in these areas, and if that happens, the dream of the US becoming energy independent can one day become reality.