How America Can Stop Importing Foreign Oil & Those Preventing It From Happening

A companion web site has been established to go along with this report so that readers of this report may view pictures, maps and graphs in color and link direct to referenced web sites.

The URL to this Master link is:

natgas-rpt

(http://natgas-rpt.com)

This ebook is being compiled under the auspices of Western Research Institute, Inc. (WRI) WRI will continue to research and compile facts about natural gas after this report is published. These facts will be published on the above companion web site under the headings Updates and Supplements. (This URL may not be accepted by some ereaders and may need to be typed into the address bar of a browser)

A distinction is made in this report between imported oil and imported ‘foreign’ oil. Imported oil is oil imported from Canada and Mexico. Imported ‘foreign’ oil is oil imported from outside of North America, mainly OPEC countries

THIS REPORT SEEKS TO ANSWER:

1. Whether and to what degree there are forces and entities that are maintaining the price of gasoline and diesel at artificially high levels?

2. Whether and how fast natural gas production can replace imported foreign oil?

3. How fast can conversion to natural gas as a fuel for transportation be accomplished?

4. What are the obstacles to conversion to natural gas as a fuel for transportation?

5. Are there people and entities keeping it from happening?

6. What are the benefits of converting to natural gas as a fuel for transportation?

7. How much refining is required for natural gas?

8. What are the components of raw natural gas and their value on the market place for transportation and manufacturing purposes?

9. What states are benefiting from production of natural gas?

10. How can all states benefit from conversion to natural gas?

PREFACE

Much of this Report is statistical and consists of facts from many different sources. All the facts reported are referenced as to source. Facts compiled have mostly come from Internet web sites and will continue to be compiled even after this report is published.

There have been many challenges in the compiling of this report. One challenge is verifying the accuracy of statistics that are reported. There were occasional conflicting statistics reported even on the same web site.

Another challenge has been the frequency of changes in the web pages that are referenced, which renders the links to the referenced URLs inoperable. In addition statistics are often updated. Fortunately this will be compensated for with the maintaining of a companion web site, which has an end notes page which can be updated to match current statistics.

There are many government and non-government web sites that provide statistics. The main one is the Energy Information Administration (EIA), which administers a massive database on energy related matters. It is a division of the U.S. Department of Energy.¹

Other web sites that should be of interest include the Environmental Protection Agency (EPA), the Government Printing Office (GPO) and the Library of Congress (LOC).²-⁴

Exports of oil from the U.S. are increasing every year. More than one billion barrels were exported from the U.S. in 2010, according to the EIA. EIA Tables illustrate how imports are declining, how oil production in the U.S. is increasing, how exports are increasing, how consumption of petroleum is decreasing, and how production and consumption of natural gas is increasing.

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END NOTES:

A companion web site has been established to go along with this report so that readers may view pictures, graphs and maps in color and link direct to referenced web sites.

The URL to this Master link is:

natgas-rpt

(http://natgas-rpt.com)

HOW AMERICA CAN STOP IMPORTING FOREIGN OIL

TABLE OF CONTENTS

FOREWORD

PREFACE

TABLE OF CONTENTS

EXECUTIVE SUMMARY

CHAPTER 1 INTRODUCTION

CHAPTER 2 AMERICA’S PROBLEMS

CHAPTER 3 TERRORISM AND WAR

CHAPTER 4 POLLUTION AND GLOBAL WARMING

CHAPTER 5 THE TRANSFER OF WEALTH

CHAPTER 6 NATURAL GAS DISCOVERIES

CHAPTER 7 FRACTURING PROS AND CONS

CHAPTER 8 CONVERTING TO NATURAL GAS

CHAPTER 9 NATURAL GAS HIGHWAY

CHAPTER 10 FAILING GRADE FOR U.S.

CHAPTER 11 PUBLIC PARTNERSHIP

CHAPTER 12 NATURAL GAS ACT

CHAPTER 13 WHAT IF…

CHAPTER 14 LIGHT DUTY VEHICLES

APPENDIX A EPILOGUE

APPENDIX B ACKNOWLEDGMENTS

APPENDIX C DEFINITIONS

APPENDIX D WESTERN RESEARCH

APPENDIX E ABOUT THE AUTHORS

HOW AMERICA CAN STOP IMPORTING FOREIGN OIL

EXECUTIVE SUMMARY

(Findings of Fact and Conclusions of Logic)

There are items that have stood out in compiling this report. They are:

The severe consequences that resulted from the exemption in 2005 of the oil and gas companies from complying with the Clean Water Act under the Bush/Cheney Administration.

The massive drilling campaign within the continental U.S. resulting from discovery of new shale oil fields or plays and the development of horizontal drilling techniques and fracturing resulting in an oversupply of natural gas.

The huge potential benefits of implementing natural gas as an alternative fuel for transportation.

The degree of corruption within the oil and gas industry and the Congress.

Conclusions by Western Research Institute include:

Increased production of crude oil within the continental U.S. and Alaska will have little or no effect on crude oil prices, gasoline or diesel prices or U.S. energy independence.

Converting to natural gas for transportation can make America energy independent (if done on a massive scale).

The U.S. can be totally free of foreign oil outside of North America in five to ten years and keep trillions of dollars in circulation in the U.S.

The U.S. can have hundreds of thousands of natural gas vehicles on the road in five years, a million natural gas vehicles on the road in ten years and millions more on the road in succeeding years.

Converting to natural gas for transportation can create millions of jobs and benefit the environment.

But it won’t happen because the petroleum industry and the U.S. Congress won’t let it happen, unless the American people make it happen. And the main reason the American people will not make it happen is lack of public awareness.

HOW AMERICA CAN STOP IMPORTING FOREIGN OIL

CHAPTER 1

INTRODUCTION

The world is becoming more energy intensive as the industrial and computer revolutions evolve and as standards of living increase in many countries. Using natural gas as a transportation fuel is a substantial departure from an oil driven economy. The world markets for oil have become behemoth in size and exceedingly complex in scope. Supplies of natural gas are currently (summer of 2012) exceeding demand and are offering an attractive alternative as a fuel for transportation.

The price of crude oil and petroleum products are determined by a number of factors. These factors include supply and demand, competition, trading in commodity