The US refines approximately 5 billion barrels of oil each year. This number is growing slowly.The Strategic Reserve contains around 700 million barrels of oil. This is less than two months worth of oil.
Our offshore oil reserves, currently prohibited from exploitation, are estimated to be 68 billion barrels. This is just over one decade worth of oil at current rates. It could last decades if used wisely though.
In comparison the Brazilian oil find that prompted BusinessWeek to pronounce Brazil “The New Oil Superpower”, is estimated to be 5-8 billion barrels, or one years domestic supply. They are getting ready to sell their oil for paper money.
Conclusion:
The best thing to do with our offshore reserves is nothing. That oil will be priceless in two decades. It is our best chance for a smooth transition to whatever comes next.
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