PT1.S3.Q18 - United States proven oil reserves

Auntie2020

So I just need clarification over why answer choice E is correct.

1. "amount of oil considered extractable is THE SAME as they were 10 years ago."
2. Annual consumption of domestically produced oil increased.

Reconcile what's happening.

Answer choice E says) Due to technological advances over the last decade, much oil previously considered unextractable is now considered extractable.

But I don't get why this is correct because it says, "amount of oil considered extractable is THE SAME as they were 10 years ago."

Please tell me what I am missing here!

Thank you!

canihazJD

The amount of extractable oil is the same level.
No new fields have been discovered.
Oil consumption has increased.

E gives you a mechanism for the level to stay the same despite increased consumption and no new fields. The only way is for more oil at the same fields to become extractable. E says this happens because of technology.

In other words maybe we had one field we determined to hold 10 gallons of extractable oil, plus 6 gallons of oil we just cant get to. We've been drawing a gallon a year from it for 2 years, and then 2 gallons a year for 2 years.

So that leaves us with 4 gallons left of extractable oil.

But wait! Using a new drilling technique, we've just discovered we can access the 6 additional gallons we thought were out of reach.

Our extractable oil is level now at 10 gallons.

It sounds like you might be reading "same" as in it is the exact same oil... but that wouldn't be the case, as we are using oil. The argument says we have the same amount of oil.

Auntie2020

@canihazJD

You are amazing! Thank you for the help!