Sept 18, 2013 Balance of Payments Trends
Sept 8, 2013 August  Employment Situation
Aug 8, 2013 Why the FED is waffling on raising the FED Funds Target Rate
July 4, 2013 Cacophony of Monetary Policy
May 20, 2013 Clawing Back to 2007 Employment Levels
May 15, 2013 Getting the Income Distribution Right the First Time
Apr 25, 2013 U.S. Competitive Rebound? U.S. Emerging Nation?
Apr 9, 2013 Gaps: Jobs,  Growth, & Fiscal
Apr 5, 2013 Disastrous Jobs Report for March (March madness)
Mar 20, 2013 Federal Reserve Rolls Along
Mar 15, 2013 Feb 2013 Labor Rpt
Feb 12, 2013 Income Distribution-Separating Light from Heat
Dec 31, 2012 Fiscal Cliff --- Increased Spending
Dec 24, 2012 Fiscal Cliff---Rising Revenues with current tax cuts?
Dec 13, 2012 November Jobs Report
Nov 28, 2012 Regulation and the Financial System
Nov 17, 2012 Employment Escarpment - Moving the Jobs Needle
Oct 31, 2012 Update on Shale Gas and Tight Oil
Oct 11, 2012 Restructuring of an Industry: US Light Vehicles
Sep 4, 2012 Resuscitating the Moribund US Economy
August 4, 2012 Unemployment Rises Again
July 21, 2012 Misguided Fiscal Policy: Is it a case of fool’s gold, or the Consequences of Economic Ignorance?
July 6, 2012 Let Freedom  Ring!!! The Shale Gale
June 26 Productivity Macro
June 11, 2012 Painted into Corner
June 4, 2012 Encouraged Worker Effect
May 28, 2012 European Honeymoon Over
May 14, 2012 Back to Basics
May 4, 2012 Labor Force Participation Rate Shrinking
Apr 26, 2012 Income Distribution
Apr 15, 2012 Energy Independence
Apr 6, 2012 Jobs Jobs Jobs
2012 Articles March and Earlier
2011 & 2010 Articles
About us
Links of Interest
Straw Poll
Definitions & Miscellaneous

2012 Volume Issue 10

Economic Newsletter for the New Millennium

April 15, 2012

Donald R. Byrne, Ph.D.

Associate Editor
Edward T. Derbin, MA, MBA

For a downloadable version, click here

Declaration of Energy Independence 4-15-12.pdf

...a bit more compressed version of same

Declaration of Energy Independence 4-15-12 compressed.pdf

Declaration of Energy Independence

This newsletter has two parts.  The first is a Declaration of Energy Independence and the second part is a survey of existing energy resources and references to the sources and relevant literature for each of the fossil fuels and a selective but brief glance at the alternative renewable energy resources both actual and potential. 



Mr. President, members of both houses of the Congress of the United States of America, elected officials of all State and Local governments in this nation and its territories and all appointed bureaucrats: 


-Free this great nation from the grip of the GREAT RECESSION.  Bring back the jobs of the 14.5 million women and men unemployed according to the realistic U-6 measure, wanting to work but cannot find jobs, many having given up looking, out of frustration.

U6 Unemployment.pdf

-Eliminate the persistently high foreclosure rate on homes.

Home Prices Seen Dropping 10% in U.S. on Foreclosures: Mortgages

By Kathleen M. Howley
April 03, 2012


“As many as 1.25 million of America’s least cared for homes are headed for auction after a year-long probe into foreclosure practices kept them off the market.”  
Howley noted that the added supply, as reflected in a 25 percent increase in foreclosures, could cause housing prices to drop up to 10 percent in 2012.  

-Bring back oil prices from their current crippling level of around $100 a barrel to range of $30-60 per barrel and derivative petroleum products such as gasoline currently around $4.00 a gallon to it pre-crisis level of $1.30 or so by eliminating the monopoly power over crude oil prices and downstream petroleum products of the now re-cartelized U.S. oil industry.  It claims that it is just going along with market prices – prices heavily influenced by OPEC, we must add.  It is acting like it is an informal part of the OPEC cartel.

-Free up the permitting process so that petroleum refineries can be expanded, modernized, and built to avoid impending shortages caused by approaching lack of refining capacity.

-Similarly, free up the permitting process for pipelines needed to take advantage of newly exploitable gas and oil shale fields (Marcellus, Bakken, Eagle Ford, and others) and the oil sands of Canada.  

This is the nation that undertook the Manhattan Project bringing the end to the War in the Pacific and launched us into the nuclear fission age and is helping propel us along to the age of nuclear fusion, the virtually unlimited energy resource.  

This is the nation that took us from horse and buggies and landed us on the moon.
This is the nation that forced the collapse of the Iron Curtain and the Soviet Empire.

We do not need to have our president bowing and scraping to the royalty of nations limiting our sovereignty by orchestrating the contrived scarcity of crude oil nor trying to emulate the leaders of Europe floundering with the problems of sovereign risk having brought it on by seducing a large portion of their populations into a state of dependency on government handouts.

What we do need is an energy policy that will take advantage of the abundant currently technologically exploitable energy resources as indicated in the remainder of this article.  

…a review of fossil fuel sources of energy


Coal Reserves


“Based on U.S. coal production for 2010, the U.S. recoverable coal reserves represent enough coal to last 239 years. However, EIA projects in the most recent Annual Energy Outlook (January 2012) that U.S. coal production will increase at about 0.4% per year for the period 2009-2035. If that growth rate continues into the future, U.S. recoverable coal reserves would be exhausted in about 168 years if no new reserves are added.”


Crude Oil

U.S. Department of Energy, Energy Information Administration

Review of Emerging Resources U.S. Shale Gas and Shale Oil Plays
July 2011


INTEK shale report’s assessment of technically recoverable shale oil resources, which amount to 23.9 billion barrels in the onshore Lower 48 States. The largest shale oil formation is the Monterey/Santos play in southern California, which is estimated to hold 15.4 billion barrels or 64 percent of the total shale oil resources shown in Table 1. The Monterey shale play is the primary source rock for the conventional oil reservoirs found in the Santa Maria and San Joaquin Basins in southern California. The next largest shale oil plays are the Bakken and Eagle Ford, which are assessed to hold approximately 3.6 billion barrels and 3.4 billion barrels of oil, respectively.

Inventory of Shale Oil and Natural Gas Plays.pdf


New U.S. Geological Survey Method for the Assessment of Reserve Growth

USGS – United States Geological Survey



Office of Oil and Natural Gas/Office of Fossil Energy U.S. Department of Energy

April 17-20, 2005

Opportunities for Increasing Revenues from State and Federal Lands: Pursuing the “Stranded Oil” Prize


Crude Oil Inventory.pdf

USGS – United States Geological Survey – April 2005


Crude Oil Potential.pdf

USGS – United States Geological Survey – April 2005

Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of the Nation’s Outer Continental Shelf, 2006

U.S. Department of the Interior, Bureau of Ocean Energy Management, Regulation and Enforcement (formerly, Minerals Management Service)


“Using a play-based assessment methodology, the Minerals Management Service estimated a mean of 85.9 billion barrels of undiscovered recoverable oil and a mean of 419.9 trillion cubic feet of undiscovered recoverable natural gas in the Federal Outer Continental Shelf of the United States.”


1995 National Estimate of United States Oil and Gas Resources

U.S. Department of the Interior, United States Geological Survey http://greenwood.cr.usgs.gov/energy/circ1118.pdf  

Estimates of national totals for technically recoverable conventional oil, gas, and natural gas liquids (NGL):

Total onshore areas and State waters of the United States:

Crude Oil (billions of barrels) = 112.6

Gas (trillions of cubic feet) = 1,073.8

NGL (billions of barrels) = 29.3



U.S. Department of Energy, Office of Fossil Energy - Office of Oil and Natural Gas

Prepared by Advanced Resources International

February 2006


“Large volumes of technically recoverable domestic oil resources remain undeveloped and are yet to be discovered, estimated at 400 billion barrels, from an undeveloped remaining oil in-place of over a trillion (1,124 billion) barrels.”

U.S. oil resources: President Obama’s ‘non sequitur facts’ 

Posted by Glenn Kesslerat – Washington Post


“This oil resource figure is based on technical estimates made by two arms of the Interior Department — the U.S. Geological Survey (for onshore estimates) and the Bureau of Ocean Energy Management, Regulation and Enforcement (for offshore estimates). These estimates add at least 140 billion barrels to what is known as the U.S. endowment of oil, for a total of more than 160 billion barrels.”


Official Oil and Natural Gas Reserves



Natural Gas


Do you know that the U.S. has over one-hundred years of reserves of natural gas? 

According to the EIA Annual Energy Outlook 2011, the United States possesses 2,543 trillion cubic feet (Tcf) of potential natural gas resources. Natural gas from shale resources, considered uneconomical just a few years ago, accounts for 862 Tcf of this resource estimate. At the 2010 rate of U.S. consumption (about 24.1 Tcf per year), 2,543 Tcf of natural gas is enough to supply over 100 years of use.

Do you know that ‘peakers’ are used to meet peak load needs of electric utilities when electricity cannot be purchased from the grid from other electric utilities off peak?  They use the gas to generate electricity from jet-like turbines.  With the substantial drop in natural gas prices in recent years, it is becoming a growing source of power to generate electricity even at off peak times.

Why not something like a Manhattan Project or Man on the Moon Project for the advancement of technology to expand alternative renewable resources as well as the detoxifying of pollution from the use of fossil fuels? 

It’s clear that while we will be tied to coal for electricity production for many years to come, we are making some strides in terms of alternative energy production as well as increasing our use of cheap and relatively cleaner natural gas.  In spite of that, the Environmental Protection Agency, the EPA, recently published standards that will effectively restrict the use of our most abundant resource, coal, in the future production of electricity.  

Standards of Performance for Greenhouse Gas Emissions for New Stationary Sources: Electric Utility Generating Units

March 27, 2012


The proposed requirements, which are strictly limited to new sources, would require new fossil fuel-fired EGUs greater than 25 megawatt electric (MWe) to meet an output-based standard of 1,000 pounds of CO2 per megawatt-hour (lb CO2/MWh), based on the performance of widely used natural gas combined cycle (NGCC) technology.

Energy Consumption by Source.pdf

Electricity Generation by Sector.pdf

Electricity Generation by Sector Percent.pdf

Renewable Energy


Five renewable sources used most often are: 

Biomass — including: wood and wood waste; municipal solid waste; landfill gas and biogas; ethanol; and biodiesel

Water (hydropower)






…a quick glance at Wind Power – Michigan   



Michigan Offshore Wind Survey.pdf

Wind power, study by MSU Land Policy Institute

At the end of 2010, the installed capacity of wind power in the United States was just over 40,000 megawatts (MW)...Wind power accounts for about 3% of the electricity generated in the United States.   

A study by Michigan State University argued that enough wind power could be achieved from off shore wind turbines to satisfy nearly one-quarter of the nation’s need for electricity ON A RENEWABLE BASIS.


Michigan’s Offshore Wind Potential

September 30, 2008

Web page Press Release




“Assuming that wind towers can be located at all depths without restrictions, Michigan could potentially generate 321,936 Megawatts (Mw) of electricity from offshore wind.”

“In essence, if the Great Lakes surface area is built out, without restrictions, to maximum depth, the total power output is projected to be 321,936 Mw, or 99,932 Siemens SWT 3.6 turbines.”



We need to focus much more on growing the economy and less on redistributing income and wealth.  An aggressive anti-trust policy to decrease the concentration of industries such as currently exist in the financial services and crude oil and its derivative products, is a much more efficient way of maintaining an equitable income distribution than is letting industries concentrate monopoly power over production and prices with the resulting grossly inequitable income distribution and then massive intervention by government to redistribute income to lessen such inequalities.  

Why stand we here idle?  We send billions of dollars to unfriendly oil exporting nations who in turn are large funders of terrorism around the world resulting in the deaths of tens of thousands of not only innocent foreign people, but of their own people as well.