Crude Oil and Products

(Updated 1/24/01)

Resource base

World - 1033.2 billion barrels

U.S. - 21,765 million barrels of crude reserves as of December 31, 1999.

Western U.S. - 17,348 million barrels of crude reserves as of December 31

Costs of tapping the resource base

Costs reflected in market price

Leasing

Exploration and development

Production

Transportation

Refining

Distribution

Costs allegedly not reflected in market price (and size of such costs)

Military costs associated with protecting sources in unstable regions of the world (large)

Maintaining the Strategy Petroleum Reserve (small)

Greenhouse gas emissions from production, transportation, refining, distribution (moderate)

Criteria pollutants and regional haze (small)

Current and forecasted market price

Barriers to expanded use

Fewer easy development prospects

Inadequate access to lands for exploration and development

Current policies to overcome barriers

Financial subsidies (from EIA) (EIA definition of subsidies)

Federal R&D on new exploration and production technologies (From Fossil Energy)

FY 2001 Budget for the U.S. Department of Energy Fossil Energy Programs

Potential actions to overcome existing cost barriers and future cost barriers

See National Petroleum Council

Potential actions to include costs allegedly not reflected in market price

Fee on imported oil

Carbon taxes

Greenhouse gas emission cap and trade system

Criteria pollutant cap and trade system