Approach Utah's new gusher cautiously

Published: Saturday, May 7, 2005 7:57 p.m. MDT
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If central Utah truly does contain a billion or more barrels worth of easily accessible oil, that would be a great boon to the local economy and a boost to a nation that seems increasingly at the mercy of a volatile Middle East. President Bush's recent session with Saudi Crown Prince Abdullah left a sour taste in the mouths of many Americans. It looked a little too much as if the United States was groveling.

But no one in Utah should begin counting on the money. Nor should this "find," if it truly is one, divert any attention from the real need, which is for reliable alternative-energy vehicles. As the Associated Press account of the Utah oil discovery said, 1 billion barrels of oil alone would keep the United States going only for about 45 days. Despite a rapid rise in the cost of a gallon of gasoline, the demand in this country remains incredibly high.

The Wolverine Gas & Oil Corp., based in Grand Rapids, Mich., says it has been producing quality oil for about a year now from a deposit near Sigurd, Sevier County, which is about 130 miles south of Salt Lake City. The company, as well as government geologists, say this one deposit could contain up to 200 million barrels, and the company's 25 deposits in the area could contain as much as 1 billion barrels.

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It's a claim disputed by some experts, but a BLM auction of leasing rights later this month is expected to attract a lot of attention.

Such a find would certainly be better than efforts to extract oil from shale deposits, which has proven to be prohibitively expensive in the past. But no matter how much oil is discovered in Utah, the nation's reliance on Middle Eastern oil isn't likely to decrease by much. The United States will remain at the mercy of the whims of the world's most unstable region. And, of course, the supply one day will run out.

The price of natural gas was about $1.17 per gallon as of last March, according to the Department of Energy. Alternative-fuel vehicles pollute less and often run more efficiently than do traditional vehicles. Still, they remain a rare sight on the road.

Partly, this has to do with a lack of infrastructure, such as fueling stations. Mostly, however, it has to do with technology that has yet to produce vehicles that can travel as far and be as easily refueled as cars that rely on gasoline. For that to happen anytime soon, the federal government will have to increase the incentives it offers manufacturers to produce such vehicles.

In the meantime, we cautiously welcome the news that Utah could be the next Oklahoma, as some are putting it. If that means Utahns will begin seeing millions poured into state coffers from oil royalties, that's great. But if it means the state will become so reliant on oil that its economy begins to swing violently with market conditions, that's not good news.

Utah needs to continue its efforts to produce a vibrant, diverse economy based on several market sectors, from tourism to computers. If the oil industry booms on top of that, so much the better. But don't count on it as a permanent solution to anything.

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Scott G. Winterton, Deseret Morning News

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