Did you know that the United States has largest energy resources on Earth? You might be surprised to learn that a recent Congressional Research Service (CRS) report found just that.

The United States with its 1,321 billion barrels of oil equivalent (BOE) tops number 2 Russia with 1,248 billion BOE, and number 3 Saudi Arabia with 543 billion BOE.

The report also found that the United States has tapped into only 13 percent of these energy resources, with the other 87 percent still untouched. Sen. James Inhofe (R.-Ok.), along with Sen. Lisa Murkowski (R.-Alaska), who released the report last week said:

"Our overwhelming coal, natural gas, and oil resources represent tens of trillions of dollars in wealth and millions of American jobs. Government policies that unnecessarily restrict or preven... more »

In this episode, I interview Alan Gelder of Wood Mackenzie, who recently conducted a study on the potential impact of climate change legislation on refiners.

Use the audio player below to listen to the conversation and follow along with the show notes. I hope you find the podcast informative.

Show Notes:

00:17 Much of the political discussion in Washington these days involves the climate bills being considered in Congress. Multiple studies suggest that the cost of the bills could be enormous, especially for the refining industry. A recent study was conducted on the potential impact of climate change legislation on refiners.

00:54 The independent study is part of Wood Mackenzie's ongoing research analysis of the energy sector and was not commissioned by any part... more »

When energy consultant Daniel Yergin calls unconventional natural gas a "game changer," people listen. And in today's Wall Street Journal op-ed, Yergin and his colleague Robert Ineson of IHS Cambridge Energy Research Associates (IHS CERA) say that the ability to produce natural gas from shale could "transform the debate over generating electricity."

As Yergin and Ineson explain, the combination of horizontal drilling and hydraulic fracturing have led to a dramatic rise in natural gas supplies in the United States. "At current levels of demand," they say, "the U.S. has about 90 years of proven and potential supply--a number that is bound to go up as more shale gas is found."

They also say that natural gas emits less carbon than other fuels, making it a very attractive power source in a carb... more »

"Remarkable" was the word used by Energy Information Administrator Richard Newell last week to describe the sharp rise in U.S. natural gas reserves. In a report issued by his agency last week, Newell noted that U.S. proven natural gas reserves rose 3 percent in 2008.

The report also showed that natural gas reserves in shale formations rose an astonishing 51 percent over 2007. "This year's report underscores for a second year the technological shift in domestic exploration and production from conventional reserves to unconventional shales," Newell said.

In the past few years, the combination of horizontal drilling and hydraulic fracturing have unlocked the promise of natural gas in shale formations and have led to a natural gas boom in several regions of the country. The Barnett Shale in Te... more »

The ongoing debate over the Kerry-Boxer climate bill has tended to focus primarily on two issues: the bill's potential costs and its proposed environmental benefits. But there are at least two other critically important items that have not been addressed adequately by the bill's sponsors. Both were mentioned briefly at yesterday's hearing before the Senate Environment and Public Works Committee hearing.

The first involves government-mandated diesel emission reductions that began about seven years ago. The goal was to reduce emissions from heavy trucks to near-zero levels for both nitrogen oxide and particulate matter (soot). The American Trucking Associations (ATA) supports the air quality gains, but it notes that the environmental improvements haven't come cheap.

At yesterday's hearing, B... more »