Energy: Supplies, Sustainability, And Costs (Information by Sandra M. Alters
By Sandra M. Alters
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Extra info for Energy: Supplies, Sustainability, And Costs (Information Plus Reference Series)
How Oil Is Drilled and Recovered Oil is crucial to the economies of industrialized nations, and oil production is strongly influenced by market prices. 1. S. pdf (accessed November 8, 2004) Scouting for new deposits and drilling exploratory wells is expensive. It is also costly to drill, maintain, and operate production wells. If the price of oil falls too low, operators will shut off expensive wells because they cannot recover their higher operating costs. In general, when oil prices are high, oil companies drill; when prices are low, drilling drops off.
Plies cut off, the reserve system would be connected to existing commercial lines that would start pumping the oil. Due to declines in crude oil production after 2008 and in Alaska in 2016, the domestic petroleum supply is expected to decline after 2008 as well. ) Thus, the EIA projects an increasing dependence on petroleum imports, with imports filling 70% of American petroleum needs in 2025, up from 53% in 2002. ) The SPR increased in 2002 and 2003 due to the importation of sixty-four million barrels of crude oil for this purpose.
Supplies from Alaska, which increased with the construction of a direct pipeline in the late 1970s, have begun to decline. S. oil production. S. oil production will likely continue its decline. The Alaskan government and the administration of President George W. Bush strongly support drilling for oil in Alaska’s Arctic National Wildlife Refuge. But there is great controversy over this proposal because of environmental concerns. S. House of Representatives has approved drilling in the Arctic refuge in the past, only to have the proposal repeatedly fail in the Senate.