Colombia finding oil in the Gulf
Image via WikipediaIBD:
In yet another sign we are not keeping up, Colombia, a small nation not highly endowed with oil resources, will soon match or surpass U.S. production in the Gulf of Mexico.The strangulation of domestic production by this administration is a scandal. It is costing all of us money and it is also endangering national security. We need to replace Obama officials who have been pushing this bad policy.
In the wake of its victories over FARC narcoterrorists, Colombia is charging full-speed ahead to collect a peace dividend in the form of oil riches, the Wall Street Journal reported Monday. Officials in Bogota say that in eight years, the country will be producing 1.5 million barrels a day in the Gulf of Mexico, an amount about equal to all the oil produced there now.
Colombia's oil resources don't begin to compare with those of neighbors Venezuela and Ecuador. But it makes up for it with determination and a friendly environment for business. "Latin America's energy scene has another rising star: Colombia," the Los Angeles Times reported.
Colombia now has proven, mostly onshore oil reserves of 2.6 billion barrels. From that, it should produce about 800,000 barrels a day in 2010. By contrast, the Gulf yields 1.6 million barrels a day from 8.1 billion barrels of reserves. By 2020, Colombia's output will match that.
As impressive an achievement as that is for Colombia, it also underscores how the U.S. is failing to produce up to its potential.
Oil production in this country has been demonized by politicians for years, and the midterm election was no exception. Gulf production until recently was shut down by President Obama in the wake of the Deepwater Horizon spill, driving some U.S. rigs to Africa.
Energy analysts say production is down and may not return to normal anytime soon. But because oil will continue to supply 90% of America's energy needs, dependence on imports will go up.