Large Oil Deposits Found In Montana-Truth!
Summary of eRumor:
A U.S. Geological Survey report that tells about a large domestic oil discovery hidden beneath the Rocky Mountains.
The Truth:
The US Geological Survey report is real and was released in 2008. Click for report.
There is oil up in those hills and it has been known about for years, but it is oil shale, a natural resource that contains a material called kerogen. Kerogen is used to produce kerosene and is high in hydrocarbons, the substance that is naturally found in crude oil.
Marathon Oil Corporation has been drilling in the area and said on their web site that the North Dakota Bakken Shale oil play has been the company’s “centerpiece unconventional resource and will be a top priority for its North America capital investment program in coming years.” Marathon also said that so far, net Bakken production has well exceeded expectations resulting in 9.6 thousand barrels of oil equivalents per day (MBOEPD) in 2009, and increase from 5.8 MBOEPD in 2008. The company first began drilling in the Marcellus Shale located in Pennsylvania and West Virginia.
Shale oil was considered as an alternative fuel source during the Jimmy Carter era when America experienced a gas crunch in the 1970’s. Additional refining processes are required to extract fuel from shale oil, which could result in cost increases at the pump.
There are also other major oil companies, including Shell and Chevron, who are also working on solutions to supply fuel from oil shale deposits and other alternative fuel sources throughout the U.S.
updated 01/18/11