Tuesday, June 17, 2008

Oil Reserves May Be Significantly Underestimated

As you might expect them to, oil companies give conservative estimates on how much oil is available in their oil fields. They do this of course so they can beat expectations. The problem is, people take these estimates as gospel, and that's part of the reason oil prices have been spiraling upwards and pulling prices at the pump up with them, reports New Scientist.

According to industry estimates, we're down to about 1200 billion barrels of oil. But one expert, the former chief executive of the UK Royal Society of Chemistry (and oil industry advisor), believes there may be twice the amount that estimates suggest.

This is a good and a bad thing. It's a good thing because gas prices could come down if we come up with a better way to measure reserves. But it's a bad thing because if there's twice as much oil, that means there's twice as much CO2 for us to pump into the atmosphere.

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I started pound360 to channel my obsession with vitamins, running and the five senses. Eventually, I got bored focusing on all that stuff, so I came back from a one month hiatus in May of 2007 (one year after launching Pound360) and broadened my mumblings here to include all science.