Why the U.S. Can’t Use the Oil It Produces

we are closing the border and we are drilling drilling Drilling and you keep us moving towards energy independence our country must reduce its dependence on foreign oil I said we are going to need oil for at least another decade look and beyond that we are going to need it depending how much politicians talk about oil and the use of oil reserves. I always thought the United States was running out of oil, we have about 35 years of oil left worldwide, but I couldn't. You may be more wrong in just the 10 years after 2008, when the US went from a place of slowly falling oil production to more than doubling its output and regained its place as the world's largest oil producer. , but there is something peculiar: the US is dumping almost a third of its oil just to exchange it for oil from somewhere else.

This is the story of America's wild oil revolution and why it still won't give America energy independence. This video was brought to you by Reed W himself, but more on that. A little later, to understand America's relationship with oil, let's start with a quick crash course: For most of the last 150 years, the United States has been the place to get oil, we drill almost everything and also use the largest amount of oil in the world, but In the late 1930s, other countries, such as Saudi Arabia and some other Middle Eastern countries, realized that they also had tons of oil, so they started drilling like crazy.

Around this time, the United States begins to import some oil, but still drills most of it itself, but America's voracious demand for oil to fuel its planes, trains, and automobiles cannot be contained. US oil demand is beginning to significantly exceed US production, so imports are increasing quite rapidly. The United States becomes increasingly dependent on foreign oil, but then in 1973, after the United States gave money. To Israel, Saudi Arabia's enemy in the kapore yam war, they and other RA Arab oil exporters said: "Actually, there is no more oil for you and imports decrease. We do not have enough oil to compensate for this loss." , so there is simply no oil for consumers." the stations ran on empty and dry gas pumps, no more road trips to make sure there is enough oil to last the entire country throughout the winter, it will be essential for all of us to live and work in lower temperatures, the problem was so serious President Nixon literally told businesses to stop working if it would save energy.

I am ordering that daytime temperatures in federal offices be immediately reduced to a level between 65 and 68° and that means in this room too and with this the US is really starting to talk. about this thing called Energy Independence and the US is paralyzing the lack of it to respond. Nixon bans US oil exports and makes a plan to build 1,000 nuclear power plants by the year 2000; according to one estimate, if all of these nuclear power plants were actually built, the US could meet the double its energy demands in 2022 without fossil fuel emissions from production, but instead there are 54 anyway, meanwhile the US needs more oil because those gas engines are not going to run themselves, but that it's a little.

It's uncomfortable because the United States still can't find that oil on its own soil. We started importing more oil from Canada, our fairly peaceful neighbor, but our oil habit still requires us to bring in plenty from the Middle East. In this context, little by little we are getting more oil from Canada, it uses a lot from the OPEC countries and doesn't get much here, which perfectly sets up a revolution. As you can see, the line I'm on now is going down and something similar is happening with natural gas, the other major fuel source we have. use in the United States which is largely collected in the same way as oil, you would think it is declining because we have run out of oil, but that is actually not true at all, the United States had and still has tons of oil, The problem was that we couldn't get it.

This is The Barn at shale, it's a giant natural gas reserve around Fort Worth, Texas, and in 1995 the US government said it had, like, a ton of natural gas, but it wasn't conventional. There are two ways that the things we want tend to happen. They exist underground conventionally or unconventionally, conventional oil wells were just, you know, think of a big puddle of oil under the ground, you're just hitting it like a straw, sucking it up, yeah we still have a lot of spots like that, like Saudi Arabia, the Middle East, them. Basically, we have that kind of oil in abundance, that's why it's super cheap, but the Barnett Shale is not like that, it's made up of these big rocks called Shale that have natural gas and some oil trapped inside them, but the question is how to get in? .

People have known for a long time that the answer was to fracture rock or frack. Even John Wil's Booth a month before he killed Abe Lincoln was a fracker, but the problem with early fracking was that it didn't always work as well as in the case of John W. Boot, he put some explosives in a well and made a big hole, but there wasn't a drop of oil left, so naturally he left Pennsylvania and killed the president. I guess this is the kind of anger that not getting oil can provoke in people, especially when they spend tons of money on it, so in the late 1990s, when a guy named George Mitchell was looking at his paper that said all his land and the Barnett Shale had tons of gas trapped but you couldn't get it, he may have had a murder on his mind, he was bleeding money trying to make fracking work when his team changed things up a bit, they used a newer technique to open the rocks by shooting a special water-based mixture and drilling them sideways rather than simply in a straight line.

With perfect adjustments, the production sparked a revolution that finally made it fast and cheap enough to drill all of Lush's resources trapped in US shale for a few years. Producers were still skeptical, but then in 2008, oil prices hit record highs. Interest rates reached historic lows. and from 2008 to 2018, the US doubled its oil production and in 2015 they lifted the ban on exporting oil to the United States, which explains this graph. This increase is not 100% due to fracking, but is primarily due to fracking, so this explains how we got to where we are. where the United States has a surprisingly high amount of oil because of this new technological innovation, but something strange is still happening: the United States

produces

an amount very close to the amount of oil Americans use, and yet we ship a large portion outside of the right country To get different oil from other countries and bring it back to the United States, there are some strange logistics that explain why this international exchange of oil is happening, so the remaining part that we haven't really talked about yet is between the oil that is in the ground and its use. is refining so any oil from anywhere can be used it has to be refined first otherwise it's just this thick black toxic sludge that can't really be used for anything so the refinery I'm going to now will help explain why American Oil is not always the best answer, this is Chevron's elsag gundo oil refinery which is one of the largest oil refineries on the west coast and most of the oil that is cooked is not American but which comes from one of these boats that are a couple of miles away. offshore and quietly pumping out their oil through these large tubes in October of last year, the most recent data we have is that this Refinery sourced crude oil from South Korea, Argentina, Guyana, Mexico and Colombia, and it's not just This Refinery, another Chevron in California imported crude oil from Iraq, Venezuela, Mississippi, Canada, Michigan and even Texas, the state that extracts almost half of the crude oil in the United States, imported 26 million barrels of crude oil last October.

A brief interlude, honestly, probably won't help you much, but one barrel of oil is equal to 42 gallons. It's kind of like a bathtub, so it seems like a lot of work to move all this oil when we have it here, we just don't use it, so why don't we use our own oil? There are a few reasons. We don't, so first of all, a lot of American oil stays in the United States, like when Texas drills a ton of oil and then refines it on the street, then Texans can pump it into their truck at a gas station when everything is very close, like Almost all transportation costs have disappeared, so Texas has some of the lowest gasoline prices in the union, but the first problem is that not all the oil is next to a refinery and refineries are not always next to the people who need them.

We use Los Angeles as an example in 2021, California used 65 million barrels of oil. The state is one of the largest producers in the country, so some of that oil comes from within the state, since a few miles from this refinery there is an oil field. in the middle of Los Angeles and there are other famous and hidden oil wells that are scattered all over the city and next to people's homes, but all the oil extracted in California still represents only a fifth of what is needs, so how about we bring in a little more of Texas, in most of the country there is a system of pipelines that take oil from the places where a lot of oil is produced to the people who want it, but California is a Except, the state and its nearly 40 million residents have no pipelines coming and probably never will, because even if Texas oil reached California, most of the state's refineries wouldn't be able to use it.

This is the main reason why the United States cannot use its own oil. It's not the right type, let me explain for simplicity. I got this from the explanation like I have five subreddit. Let's imagine that there are two types of oil in the world, one is strawberry and the other is chocolate. For a long time, the United States produced a lot. of chocolate oil, so to use it we also created a bunch of refineries that turn chocolate into gold, not gold, but you know what I mean, but over time, especially with the use of fracking, the supply of oil from the US became a lot more strawberry and those chocolates. refineries can't use that, if they do they will have really big problems.

Oil refiners could create more refineries if they wanted, but according to one commentator, the U.S. government's environmental standards and the push to move away from fossil fuels make it a risky investment. why the last major construction of an oil refinery in the US was almost 50 years ago, so instead of going through the super expensive process of upgrading US refineries to use US refineries strawberry oil, we decided that it would be a better idea to just import chocolate oil from other countries that we still make it and use it in our chocolate refineries and then we just ship all that strawberry oil overseas, where they have refineries, so in 2022 59% of the oil that goes to California refineries came from foreign countries and 80% of the oil originates from Elsa Gundo.

Abroad and despite exporting more, the US still imports considerable sums of oil, the real picture is more complicated than this, as there are a whole range of differences in types of oil and refiners do not just use one type super specific, but the end result is the same. The companies that buy and sell oil decided that keeping the same refineries in the United States and simply importing the right kind of oil makes them more money than using oil from the states, and that brings us to the final concern that many people have about American oil. . Energy and Dependency Energy Independence The concept of energy independence is a really nice idea that gives these vibes of ultimate control over one's destiny.

No other country can decide if we have power and it seems like the logical answer if we do it ourselves. "It may be closer and cheaper perhaps, but the reality is that in many cases it simply is not. It would be very damaging to the economy if the United States suddenly said that we are not importing or that we are not exporting." We're just going to do, you know, we're just going to work with what we have, the Chicago refineries would find out that they don't have oil to refine, it would takedecades to solve it, it would be a disaster, the most important factor in gas prices, is nothing more. that the international cost of oil, which the United States only has a small part in determining, and then beyond the price, just because the oil is nearby doesn't mean we can use it, you will hear that you know Joe Biden was wrong and that's why we don't do it.

We have energy independence but we have never had energy independence and all countries should worry about energy security. You know they have enough energy to meet the needs and demands of the consumer people's economy. The United States is energy secure by focusing on energy security. Independence is the reason I've been inching along this Canadian line for so long, historically speaking the United States is much less likely to fight Canada than a Middle Eastern country, so it's a pretty safe bet that Your oil will be there for us and as for our addiction to oil, as much as some people would like to stop using oil altogether, America is still heavily dependent on it, we have to do everything we can to move forward as throughout this transition in a very purposeful way to ensure that we are not only mitigating greenhouse gas emissions from climate change, limiting local environmental damage but also keeping energy affordable, we have to ensure that our most vulnerable communities are addressed, if the United States continues pumping oil here or abroad, the world could benefit to some extent from the country's relatively low greenhouse gas emissions from production, but at the end of the day, to curb emissions , oil should stay in the ground, so I don't want to sound like a shameless, you know, just an environmentalist who, like us, just has to clean up.

Energy Technologies and simply stopping all fossil fuels, something that cannot happen overnight, but it can happen faster than we can think and than possibly the fossil fuel industry believes it can happen, and while The United States and the rest of the world are still figuring out how they will do it. find energy security, let's look at something else that needs security, privacy and freedom. I want to tell you about WR's own construction, the next era of the Internet, a new book by an entrepreneur and investor Chris Dixon Reed raised the consequent question: who should decide the future of the Internet?

It is an issue that has been increasingly debated as we grapple with the fundamental concepts of privacy and freedom in reading and freedom. Dixon himself argues for an alternative to the current Internet where blockchains claim control for people Blockchains serve more than just trading and speculating in cryptocurrencies: they are a new type of computer-like building material that could be used to build a better Internet that can transfer ownership of digital services from large centralized platforms to decentralized applications that put people in charge read write own offers a vision of the Internet where people can co-create and benefit from platforms that they use and make useful every day.

Order your copy today or visit readrightown.com for more information. Jesus Christ, oh my God.