Higher Prices = More Supply

The first of what I expect will be many similar announcements:

The Wall Street Journal reported Monday that the region where the well is
located could become the nation's biggest new domestic source of oil since the
discovery of Alaska's North Slope more than a generation ago.
The Journal
said Chevron and Devon officials estimate that recent discoveries in the Gulf of
Mexico's lower-tertiary formations hold up to 15 billion barrels' worth of oil
and gas reserves, a total that would boost the nation's current reserves by 50

But by all means, windfall taxes must be what’s best for consumers since peak oil is surely upon us.


dan p. said...

I don't know how well prepared I am to discuss fossil fuels, but I would like to say something about peak oil. Technically you are correct about peak oil being bunk. As long as the sun is feeding plants & animals that in turn die & decompose, hydrocarbons will be here. To me, that sounds even worse than waiting for paint to dry, but I digress.

Do you really want to be squeezing the earth harder & harder just to get some oil out of tar sands? Because you can do it, but you can also start looking around for other sources of btus to make things move.

Andrew said...

I think the “Peak Oil” NPR so frequently refers to is the point of maximum oil extraction. I fully expect this inflection point to occur but it will happen as the result of humanity simply utilizing a better source of energy storage rather than any impending shortage. My post was simply commenting on the ridiculous positions held by democrats since this time last year simultaneously lambasting Bush for not doing more to combat rising oil prices (and oil company profits) while attacking any attempt to facilitate an increase in supply as being futile in the face of impending PEAK OIL!!!! I agree that it will be to everyone’s benefit when an energy storage medium more efficient and cost effective than oil is developed but I have nothing but contempt for the largely unchallenged hyperbole that passes as analysis from the left. Supplying the energy needs of both the developed and developing world is a serious challenge and one that demands more than breathless sound bites and sweaty documentaries.