Time for a quick reality check

BP’s latest oil discovery is still a long way from the gas tank

SAN FRANCISCO (MarketWatch) — BP’s announcement Wednesday of a “giant” oil field deep beneath the Gulf of Mexico is the kind of story that raises all sorts of breathless expectations and dire predictions.

Time to take a deep breath and look at what we’ve got.

First of all, BP’s discovery, dubbed the Tiber prospect, does not prove or disprove the “peak oil” theory. For all those out there who still believe the center of the earth is full of crude oil, they should revisit a basic textbook on geology.

Better still, they should talk to a petroleum geologist. One at BP, for example, might offer some valuable insights on how hard it is to find oil, even with all the amazing 3-D seismic and drilling technology now available.

As for those who believe this discovery will somehow meet the nation’s energy requirements, a visit to the Energy Information Administration’s Web site for a crash course in supply and demand might provide some useful perspective.

MarketWatch